Alert: £17.7M Pension Fraud Loss in 2023 Warns Savers

The growing menace of pension fraud is a serious concern for savers, with Action Fraud highlighting the need to remain vigilant and proactive in protecting their pensions and investments. The national fraud and cybercrime reporting agency has recently disclosed that it received a staggering 559 reports of pension fraud in 2023 alone, resulting in losses amounting to £17,750,635. This translates into an average loss per person standing at £46,959.

In response to these alarming figures, Action Fraud has initiated an awareness campaign specifically designed to educate people about potential risks associated with their pensions and investments. The objective is not just to warn but also guide individuals on how they can safeguard themselves from being defrauded.

Claire Webb, Acting Director of Action Fraud emphasises the impact these fraudulent activities have on retirees when she said: "Criminals will go to great lengths to trick anyone out of their money; here we are talking about someone's lifesavings at risk." She added that losing any sum earmarked for retirement could be devastating.

Webb urged people not only protect their pensions and investments but also conduct thorough research before making any significant changes or decisions related thereto. She advised against falling prey to unsolicited offers such as pension reviews or investment opportunities which seem too good to be true.

"Don't let anyone rush you into making big decisions," warned Webb while stressing the importance of seeking advice from independent professional services or trusted family members and friends before committing one's hard-earned savings.

Pension scams typically involve attractive bait like free pension reviews, irresistible investment opportunities offering high returns with low risk factors or proposals facilitating early access (before turning 55)to your pension pot without having penalties imposed by HMRC .

April emerged as the most vulnerable month according to data collected during this period which showed it accounted for almost 15% of total reported losses in 2023. This spike can perhaps be attributed to more individuals reviewing their pensions and financial positions in the new fiscal year. Often, it is during these reviews that fraudulent activities are detected.

In conclusion, while efforts to curb and apprehend fraudsters continue unabated, savers must also play an active role in protecting their investments. As such, individuals are urged to stay alert and vigilant when dealing with pension arrangements ensuring they do not become victims of scams which can have serious long-term consequences on their financial security.

Being proactive about your pension safety involves regularly reviewing your accounts, being wary of unsolicited offers related to pension or investment schemes and seeking professional advice before making any significant changes. Remember: if something sounds too good to be true, it probably is!