Retirement savings are a favorite target for scammers because the sums involved are large and people are often unfamiliar with the fine details of how transfers and withdrawals work. 401(k) Rollover scams typically start with unsolicited contact and end with money moved somewhere it can’t be recovered from.
How 401(k) Rollover scams work
You receive an unsolicited call or email offering to help "roll over" your old 401(k) into a new investment with guaranteed high returns, often pressuring you to act before you change jobs or before an alleged deadline. The pitch usually promises unusually high, "guaranteed" returns with no risk — a combination that does not exist in legitimate investing.
Red flags to watch for
Cold calls, texts, or emails about your retirement savings you didn’t request, pressure to decide quickly, promises of guaranteed high returns, and requests to transfer your full balance to a scheme you’ve never heard of.
How to protect your savings
Never make decisions about your retirement savings under time pressure. Verify any adviser or firm is properly registered with U.S. Department of Labor – Employee Benefits Security Administration before proceeding, and get independent financial advice before transferring or withdrawing funds. If something feels off, pause and verify independently — legitimate offers do not disappear overnight.
Frequently Asked Questions
How do 401(k) Rollover scams typically start?
You receive an unsolicited call or email offering to help "roll over" your old 401(k) into a new investment with guaranteed high returns, often pressuring you to act before you change jobs or before an alleged deadline.
What is a 401(k) Rollover scammer really trying to get?
Scammers running 401(k) rollover scams try to get you to move your retirement savings into an account they control, or extract your account numbers and personal information to redirect a legitimate rollover into their own account.
What are the biggest red flags of a 401(k) Rollover scam?
Unsolicited contact out of the blue, promises of "guaranteed" high returns with no risk, pressure to act quickly or "before this offer expires," and requests to transfer your entire pot to an unfamiliar or unregulated scheme.
How do I check if a 401(k) Rollover offer is legitimate?
Verify the person or firm is registered with U.S. Department of Labor – Employee Benefits Security Administration, never make a decision under time pressure, and get independent financial advice from a regulated adviser before transferring or withdrawing any retirement savings.
What should I do if I think I’ve already been targeted by a 401(k) Rollover scam?
Stop all contact with the scammer immediately, do not transfer any further funds, and report it to FTC – Report Fraud. If you’ve already transferred money, contact your pension or plan provider right away to see if the transfer can be halted or reversed.