A stark warning is being issued to state pensioners across the UK: be on high alert for sophisticated fraudsters targeting your retirement savings. The call to action comes from the Department for Work and Pensions (DWP), which has revealed a devastating £17.4 million was stolen from pension savers last year in 519 reported cases.
This isn’t just a statistic; it represents a life-altering loss of approximately £48,129 per victim. These criminals don’t just steal money—they steal security and peace of mind.
In response, authorities are urging anyone who suspects they’ve been targeted to act immediately. “Report pension scams to Action Fraud online or by calling 0300 123 2040,” the DWP stated. “If you’re in Scotland, you can report it to Police Scotland on 101.”
How Are Savers Being Targeted?
Experts break down the two most common tactics used by these “ruthless criminals”:
The “Too-Good-To-Be-True” Investment: Fraudsters contact you out of the blue with an exclusive, high-return investment opportunity, pressuring you to make a quick decision.
The Impersonation Scam: Criminals pose as legitimate pension providers or government officials to gather your personal information, which they then use to impersonate you and access your accounts.
Arm Yourself: How to Fight Back
Protecting your future is paramount. Here is essential advice from the experts at Action Fraud and The Pensions Regulator:
Just Hang Up: Avoid all unsolicited phone calls, emails, or texts about your pension. A legitimate organisation will never pressure you on the spot.
Seek Independent Advice: Before making any significant pension decision, always consult an independent financial advisor who is registered with the Financial Conduct Authority (FCA).
Stop, Think, and Check: Force yourself to pause. Take a breath and verify the legitimacy of any offer through official channels before you act.
Fortify Your Accounts: Use a strong, unique password for your pension account and, crucially, enable two-factor authentication (2FA) wherever it is offered. This adds a critical layer of security.
As Gaucho Rasmussen from The Pensions Regulator put it, “We urge every saver to ‘stop, think and check’ to protect their pension as if their future depends on it – because it does.”
Staying informed and cautious is your best defense against these devastating crimes.
Answers to “People Also Ask” Questions:
Q: How can I report a pension scam in the UK?
You can report a pension scam directly to Action Fraud, the UK’s national reporting centre. You can do this online at their website or by calling 0300 123 2040. If you are in Scotland, please report it to Police Scotland on 101.
Q: What are the signs of a pension scam?
Major red flags include:
Unexpected contact about your pension out of the blue (cold calls, texts, emails).
Promises of “guaranteed high returns” or “free pension reviews.”
Being pressured to make a quick decision.
Advice to transfer your pension into unusual or high-risk investments like overseas property, forestry, or crypto assets.
Q: How much money was lost to pension fraud last year?
According to the latest data from the DWP, victims lost a staggering £17.4 million to pension fraud in a single year. The average loss per victim was nearly £50,000.
Q: What should I do if I think I’ve been scammed?
Act immediately. First, contact your pension provider to alert them. Then, report the crime in detail to Action Fraud (0300 123 2040). It is also highly recommended that you seek independent legal or financial advice to understand your options.