Yvonne Braun, director of long-term savings and protection policy at the ABI, said: “We need to make sure cold calls aren’t just replaced by a deluge of spam emails and texts.
“That’s why we think further measures to stop fraudsters from using other forms of technology need to be considered by the government.”
Skirting the rules
Insurance giant Zurich is also concerned that corrupt firms will find ways to circumvent the new rules. The insurer said it backed the ban but called for it to be extended to secondary referrals and call backs.
Iain Mills, director of operational taxes at the group, said: “Under the current proposals, there is nothing to prevent cold callers contacting consumers about products outside the scope of the ban, before diverting the conversation towards pensions.
“For example, it would be legitimate to call potential victims about a will writing service, and enquire whether they would also be interested in receiving a call back about their pension. Cold callers could then pass on the person’s details to a potential scammer who could legitimately contact them.”
Utterly ineffective
Pensions’ campaign group Pension Life criticised the government for ‘ongoing inaction’ and branded The Pensions Regulator as ‘utterly ineffective’.
Chair of Pension Life, Angela Brooks, said: “The government and the regulators should talk to the victims. It is clear from the wording of this consultation document that there are still gaping holes in the understanding of how scams work and how they have evolved over the past few years.
“Since 2013, the government has refused to engage with the victims and this has to stop. The victims’ voices have to be heard since they, above everybody else, are the experts and the government should learn from them.”
Collaborative approach
The Tax Incentivised Savings Association (TISA) also believes that the consumer needs to be at the heart of solving the problem.
Its response called on the government to work with financial services firms to provide financial guidance to consumers.
TISA said its members believe that a single financial guidance body working in conjunction with the private sector could help to address the chronic economic crisis of under-saving which currently faces the UK.
This organisation would focus on financial education and debt management, while also helping protect consumers from scams and fraud.
