Three in five (60 per cent) UK adults are either incorrect or unsure about whether pension providers and advisers can legally cold call people about pension opportunities or reviews, according to research from Standard Life.

Despite this, 62 per cent of respondents said they were confident they could identify a pension scam.

Standard Life warned the misunderstanding could make savers more vulnerable to one of the most common warning signs of pension fraud.

The research also found that two in five respondents (40 per cent) either believed pension savings could be withdrawn at any age or did not know the correct rule.

In addition, 73 per cent either believed that appearing on the Financial Conduct Authority register guaranteed that every investment offered by a company was safe, or were unsure.

Standard Life argued the findings highlighted continued uncertainty about how pensions operate, what legitimate firms are permitted to do and the checks savers should undertake before acting on an investment opportunity.

Report Fraud figures cited by the provider showed that pension scam victims lost an average of £47,000 last year.

Meanwhile, the research suggested that some respondents trusted features that could be replicated by fraudsters.

Indeed, one in five (20 per cent) believed a professional-looking website and positive online reviews were reliable indicators that a pension opportunity was genuine, while a further 20 per cent were unsure.

Around 14 per cent believed advertisements appearing on professional or social networking platforms demonstrated that a company was trustworthy and would act in their best interests.

However, 53 per cent correctly recognised that a pension scam could involve real companies, genuine advisers and authentic-looking paperwork.

Standard Life said this was important because fraudulent or harmful approaches could appear legitimate while involving unsuitable investments, poor advice or recommendations that were not in a saver’s interests.

The research also found that some consumers were failing to conduct independent checks before engaging with an opportunity.

While 7 per cent discussed the offer with family or friends and 7 per cent researched the company online, 8 per cent admitted carrying out no checks.

Standard Life head of master trust and independent governance committee governance, Donna Walsh, stressed that increasingly sophisticated scams could be difficult to distinguish from legitimate approaches.

“They can come with convincing websites, positive reviews, familiar names and paperwork, which is exactly why they can be so dangerous," she said.

“What stands out from our test is that many people could benefit from greater awareness of some key pension rules and warning signs.”

Walsh noted that pension providers, employers, advisers and regulators were working together to improve awareness, while the Pension Scams Industry Group was also increasing its education activity.

However, she warned that upcoming changes to the inheritance tax treatment of pensions could provide fraudsters with another opportunity to exploit uncertainty.

“The best protection people can take is to pause, check independently and avoid being rushed," Walsh said.

“A legitimate pension opportunity should never depend on pressure, urgency or confusion. If in doubt, contact your pension provider.”

---