There has been a rise in people receiving texts and emails and seeing website adverts encouraging them to take cash out of their pensions.
However, doing so before they are aged 55 can incur significant tax charges. Tax charges of 55 per cent of the amount accessed are enforced and if the person does not tell HM Revenue and Customs, this could increase to 70 per cent of the amount.
This is payable even if the person failed to understand what they were doing, offer to put the money back in the pension or they have spent all of the money.
There are also further charges paid to the company involved, many of whom will not be registered by the FCA.
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Money invested via early pension schemes is often put into high-risk products, projects like overseas property development or stolen.
The FCA said: "We have seen someone access their entire pension of £150,000 to settle their debts. After paying £15,000 to the company involved for their 10 per cent fee, then paying £82,500 to HMRC for the 55 per cent tax bill, the person had paid out nearly £10,000 and was left with no funds in their pension and only £52,500 cash.
"Keep in mind that authorised firms you have no relationship to are highly unlikely to contact you out of the blue to discuss your pension. We have seen very little to suggest that firms or advisers promoting or arranging early pension release schemes are authorised by us, even if they say they are."
The FCA warned anyone contemplating 'pension unlocking' to seek a financial adviser for advice.

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