Pension scams

Scam activity dropped during June, but remains high with 55% of transfer showing a red flag

XPS has called the increase “disappointing” and called for robust management from trustees

Pension transfers will be red flagged and blocked if savers have been approached via social media under stronger anti-scam plans set out by the government today.

Action Fraud has revealed £1.8m has already been lost this year to pension fraud, as it warns savers to be vigilant and protect their pensions.

Pensions and financial inclusion minister Guy Opperman has issued a fresh warning over new tax year pension scams.

The Work and Pensions Committee (WPC) has urged the government and regulators to “act quickly and decisively” to protect pension savers from scams.

The Pensions Regulator (TPR) has called on the pensions industry to step up to stop scammers following a “concerning” long-term drop in reporting.

Pension transfer values ended 2020 at £259,000, 8% higher than the start of the year, according to XPS Pensions, after suffering periods of substantial volatility linked to the pandemic while potential scams reached record highs.