Pension scams have cost members more than £26.4mn in recent years, data has revealed.
A Freedom of Information (FOI) request to the City of London Police’s National Fraud Intelligence Bureau by the Pensions Management Institute revealed that between 2020 and 2022, there were 1,595 reported pension scams in England and Wales.
This equates to an average loss of approximately £16,500.
Year | Reports of Pension Scams | Financial Loss |
2020 | 668 | £8,335,192 |
2021 | 507 | £10,088,355 |
2022 | 420 | £7,996,626 |
Total | 1,595 | £26,420,172 |
Robert Wakefield, president at PMI, said: “These statistics show that in spite of the best efforts of those managing our pension schemes, the scourge of scams continues to ruin the lives of so many people.
“The sheer scale of pension scams – in terms of both the number of cases and the amount of money involved – is truly horrifying.”
The 1,595 reported cases were split between 400 examples of scams made on members, 1,185 cases of pensions liberation fraud and 10 cases of pension fraud by pensioners.
Fraud Type | 2020 | 2021 | 2022 | Total |
Pension Fraud by Pensioner (or their estates) | 0 | 4 | 6 | 10 |
Pension Fraud committed on Pensions | 119 | 136 | 145 | 400 |
Pension Liberation Fraud | 549 | 367 | 269 | 1,185 |
Total | 668 | 507 | 420 | 1,595 |
As part of Pension Awareness week, the PMI is encouraging schemes and members to remain alert to potential scams.
The cost of living crisis means more pension scheme members may be interested in accessing their savings early. This could leave these members vulnerable to scams.
Wakefield added: “Clearly the cost of living crisis has made many people desperate for cash to meet short-term requirements and it is sobering to note that so many have been prepared to access pension savings early at the cost of longer-term security.
“Tragically, it is also very clear that in spite of tight regulatory constraints scammers remain able to deceive members in order to steal their accrued pension savings.”
He explained that the clear lesson for all is that extreme vigilance remains essential.
“This problem will never go away, but we must redouble our efforts to keep it to a minimum.”
sonia.rach@ft.com
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