As new figures published by City of London police disclose that £9.1 million worth of scams have been reported in the period April to August 2015, what steps can individuals take to avoid the scammers?

The latest figures released by the City of London police make grim reading. They state that in the brave, new, post-freedom pension world, fraudsters have scammed more than GBP 9 million from pension savings – double the amount for the same period in 2014.

We have all become depressingly used to pension liberation scams, and while the Pensions Regulator (tPR) and the industry have done a great job in highlighting the risks, the figures above show scams are still out there? but they are changing.

The increase has been linked to pension freedom legislation introduced in April 2015, which enabled savers to have more freedom over their pension pots (although it is perhaps a bit too early to say this for definite). In the period of five months from April 2015, the monthly amount scammed peaked at GBP 4.7 million in May 2015.

While the amounts reported since May have decreased, it is believed that this is due to more sophisticated scams – where individuals are unaware that a fraud has taken place and may not know for years to come.

So how can you spot a scam? Well there have been campaigns by tPR and the Financial Conduct Authority (FCA) in the form of 'Scorpion' and 'Scam Smart' respectively. From these initiatives, the key points can be summarised as:

- Unsolicited contact. This may be in the form of a cold call or text message. It is worth noting that reputable pension providers are unlikely to use this sales technique. And the pushier the sales person is, the more likely it is to be a scam.

- Investment returns of over 8%. In today's markets, such a return is doubtful. Watch out for convincing marketing material and if you have reservations, discuss it with an independent financial advisor (IFA). Also do not be swayed by claims that it is being offered as you are a 'sophisticated investor'. This is just flattering to deceive.

- Home visits and couriered paperwork. Again this is not a practice used by respectable pension providers and likely to part of a scam.

- Single investments. It is common practice for a dependable financial advisor to recommend a diversification of investments to minimise risk.

- Liberating part of your pension before age 55. This is a scam, pure and simple. It can also lead to severe financial penalties.

- Overseas Investments. These must be treated with caution and it is recommended that proper research is conducted through the help of an IFA or The Pension Advisory Service (TPAS).

My thoughts and guidance to those that believe they may be the victim of one of the above techniques, or simply have concerns, should contact TPAS on 0300 123 1047.? And if they have accepted an offer which may be a scam, then report it to Action Fraud on 0300 123 2040.

Please be vigilant. It is dangerous times for you and your life savings.

Malcolm MacDougall, Senior Pensions Administrator – Spence & Partners