Pension Scams via Prepaid Cards
How pension fraudsters collect advance fees in prepaid card codes from savers before delivering no actual pension access or investment.
Part of: Pension Scams
Last reviewed: 1 June 2026
The prepaid-card variant of pension fraud is used when scammers want a quick, untraceable fee payment and the victim is not comfortable with digital wallets or wire transfers. The request is framed as a simple 'registration' or 'activation' charge, and the victim is guided to a nearby store to purchase the card.
Once the prepaid card code is shared, it is redeemed immediately. No pension liberation, transfer, or investment ever takes place, and the scammer either disappears or returns with a request for another card.
How this scam works on prepaid cards
The scammer presents a pension liberation or investment opportunity and explains that before any paperwork can be processed, a small activation fee must be paid via a prepaid card. They specify a card brand and amount and may even stay on the phone while the victim purchases it.
Once the code is shared, the scammer redeems it within minutes and then either claims to have started the process or invents a new requirement for another card. Multiple cards may be requested across consecutive days.
Elderly victims may be targeted specifically because they are more likely to have pension savings and may be less familiar with digital payment norms, making the unfamiliarity of the process less alarming.
Common red flags
- A pension adviser asks you to buy a prepaid card to activate a pension service
- You are kept on the phone while purchasing the card
- Multiple cards are requested across several calls
- The promised pension access or investment never materialises after each card
- The adviser cannot be found in any financial regulator's database
- You are discouraged from discussing the arrangement with family
How to protect yourself
- Refuse to purchase prepaid cards for any pension-related service
- End the call and independently research any pension offer before returning contact
- Call the prepaid card issuer's fraud line immediately if codes were already shared
- Verify any pension adviser through your national financial regulator
- Talk to a trusted family member or independent adviser before making any pension decision
- Report the fraudulent contact to your national pension protection authority
How to report it
- Call the prepaid card issuer's fraud line with your card details immediately
- Report to your national pension authority and financial regulator
- File a report with the FTC at ReportFraud.ftc.gov or your country's equivalent
Frequently asked questions
Would any legitimate pension company accept a prepaid card as payment?
No. Regulated pension providers and advisers collect fees through standard invoicing, direct debit, or bank transfer — never through prepaid retail cards. Any pension adviser requesting a prepaid card code is operating a scam.