Steel workers reoriented by scammers who pretend to be from the Financial Conduct Authority
Rachel Millard for the daily mail
Steel workers who are possibly mis-sold pensions are faced with a new threat of fraudsters following a data breach.
Fraudsters who pretend to be from the Financial Conduct Authority (FCA) contact former customers of the controversial consultancy firm Active Wealth and claim that they can offer assistance in getting compensation for mis-selling.
It is assumed that personal information, including the national insurance number and the birth dates of former Active Wealth customers, was handed over to another entity.
Fraudsters pretending to be of the Financial Conduct Authority contact steelworkers who were former customers of the controversial consultancy firm Active Wealth
The FCA investigates and the infringement has been reported to the office of the Information Commissioner.
Active Wealth has suspended a pension transfer activity last year after raising concerns about advice to British steelworkers. It has now gone into liquidation.
How vultures are stuck
Tata Steel closed the heavily indebted British Steel Pension Scheme (BSPS) in 2017 and said it would declare the company bankrupt.
More than 80,000 of the 122,000 members switched to a Tata scheme.
Another 17,000 were stuck with BSPS while it was closed and fell into the retirement lifeboat. Both are set so that most members are worse off.
The remaining 25,000 members have been in default in the Pension Protection Fund or have switched to new schemes.
A parliamentary survey said: "Renowned local independent financial advisors were overwhelmed by demand. The circumstances surrounding BSPS created perfect conditions for vultures to benefit. & # 39;
In a warning to customers, the FCA said: "The fraudsters can tell you some of your personal information, such as your date of birth or the national insurance number, to give the impression that the communication is authentic.
& You can also hear that you are entitled to a sum of money and that the FCA needs your bank account details to make the payment. & # 39;
A spokesperson for the FCA refused to provide information about the third party who supposedly handed over the information or to say whether it was a hacking attack.
It is the latest threat to steelworkers after being the target of pension sharks.
Chaos broke out after Tata Steel decided last year to close the heavily indebted UK pension regime.
The more than 120,000 members had to decide whether they wanted to stay with the scheme, join a new Tata plan or switch to a personal plan.
Pension sharks lift towering rates into steel core areas in Port Talbot, Wales, to encourage employees to transfer retirement funds.