“Pension Fraud Hits £1.8 Million so far in 2021”, National Reporting Centre

National Reporting Centre for fraud and cybercrime has reported £1.8 million has already been lost in fraud in the first three months of this year. The Action Fraud has rolled out warnings for the savers to be extra cautious with their pensions. 

The agency also reports that this year faces an increase in fraud including 107 cases of pension fraud received so far this year. This figure is a 45% increase from the last year. 

Action Fraud is working on launching an awareness campaign so that the public is properly informed about the significance of research before making an alteration to their pension arrangements. 

“Criminals are malicious and unapologetic when it comes to committing pension fraud. They are motivated by their own financial gain and lack any kind of empathy for their victims, who can often lose their whole life savings to these scams,” said Pauline Smith, head of Action Fraud, “ We know pension fraud can have a devastating impact, both financially and emotionally, but any one of us can fall victim to fraud and it’s nothing to feel ashamed or embarrassed about. It’s incredibly important that instances of pension fraud, and attempted scams, are reported to Action Fraud. Every report helps police get that bit closer to the people committing these awful crimes.” 

Pension scams include unrealistically good investment opportunities, free pension reviews, or offers that will get you money from your pension even if you are younger than 55. However, this is not permitted in the pension freedom rules. 

Action fraud also warns that the real number of pension fraud is more likely to be a lot higher than what is actually being reported. This year already brought an increased number of pension fraud.

The Pensions Regulator’s executive director of frontline regulation, Nicola Parish also showed her concerns and said that spreading awareness of scams will assist in protecting savers from becoming the target of the scam in the first place. The savers must visit the Pensions Advisory Service website before making any decision regarding their pension. The saver can also get advice from the FCA-recognised financial advisor. 

The pension industry is asked to assist in building confidence by signing a Pledge to Combat Pension Scams so that the savers remain confident that their pensions are secure. This pledge will be a sign by the industry that the protection of savers is taken seriously.