The Pensions Regulator is calling on scam victims to step forward and share their experiences.
In 2023 alone, fraudsters swindled a whopping £17.7 million from pension savings.
On average, each victim lost close to £47,000, a distressingly high amount when considering that the typical pension pot for those over 55 in the UK stands at around £90,400. This loss represents a nearly insurmountable financial blow to many on the cusp of retirement.
However, this may just be the tip of the iceberg as it’s estimated that fewer than one in five scams are actually brought to light, suggesting that the actual sum thieved from Britons’ retirement pots could be considerably higher.
Paul Sweeney, the Intelligence Business Lead of the Pension Scams Action Group, wrote for the regulator: “These staggering figures highlight the importance of vigilance and reporting. Savers and industry members alike must report suspicions to Action Fraud.”
He underscored: “Every report counts in building the intelligence needed to combat scams effectively.”
Often, victims are reluctant to report scams due to the societal stigma associated with having been financially deceived. However, The Pensions Regulator and the Financial Conduct Authority are collaborating to dismantle this stigma and encourage openness.
As part of the Scam Smart campaign, last November EastEnders tackled a pension scam storyline, featuring the much-loved character Jean Slater, aged 61.
Duped by a con artist masquerading as a financial adviser, Jean was persuaded to move her pension funds into what she was told was a “high return investment” following a complimentary pension review.
Tragically, it unfolded that Jean had been swindled out of everything by the scammers. The show poignantly depicted both the emotional distress and the financial disaster of being caught in a scam, while also advising viewers on the steps to take should they find themselves scammed.
Scammers often employ these tactics to prey on the vulnerable. Action Fraud has issued warnings specifically targeted at individuals over 55, as they are frequently in the crosshairs of such scams.
The service stresses the importance of staying aware of alluring investment or pension transfer proposals that appear overly favourable. People below 55 years of age should likewise remain cautious about any offers claiming to free up pension cash before reaching the legal pensionable age.
Claire Webb, Acting Director of Action Fraud, issued a cautionary statement following the alarming 2023 statistics disclosed late last year. She advised: “Prevent a fraudster from taking away the hard-earned cash you’ve put towards your retirement by protecting your pension and investments, and doing the research on who you’re dealing with before making any big changes.
“Avoid pension opportunities offered out of the blue, like pension reviews or too good to be true investment opportunities. Don’t let anyone rush you into making big decisions and seek advice from an independent professional service or trusted family and friends.”
