The Department for Work and Pensions (DWP) is urging pensioners to contact their pension provider ‘immediately’. Pensioners across the nation could find themselves in the crosshairs of malicious criminals attempting to steal their retirement funds.
Action Fraud documented 519 instances of pension fraud throughout 2024. This led to devastating losses totalling £17,467,249 during that period alone, representing approximately £48,129 per victim.
Scammers deploy various methods to target vulnerable people and obtain access to their pensions and confidential details, including aggressive coercion techniques. Taking to X, the DWP stated: “Report pension scams to Action Fraud online or by calling 0300 123 2040. If you’re in Scotland, you can report it to Police Scotland on 101”.
“You should also contact your pension provider immediately”.
To prevent losing your hard-earned retirement savings, numerous steps can be taken to safeguard your account. Even without technical expertise, several security measures require minimal digital know-how.
How to protect your pension
Secure passwords
A crucial method to prevent pension theft involves implementing additional security protocols for any online accounts you maintain. Most digital platforms provide two-step verification options, ensuring nobody can breach your account without accessing a secondary account or device.
It is also recommended to consistently use a robust and secure password that would be difficult to guess. For instance, steer clear of passwords containing your name, date of birth, or consecutive numbers such as ‘1234’.
This follows Action Fraud’s launch of a fresh awareness campaign alongside the Pension Scams Action Group (PSAG) to assist vulnerable individuals in taking extra precautions to safeguard their pension scheme. The initiative emphasises that people should remain wary of any investment opportunities presented to them, as these could be criminals employing underhanded tacticts to steal their funds.
Chief superintendent Amanda Wolf, head of Action Fraud and the National Fraud Intelligence Bureau (NFIB), said: “When a person has their life savings swiped away by ruthless criminals, it can leave a devastating impact and leave people in limbo – that’s why we’re urging people to stay alert to the tactics of criminals targeting those who are saving and investing for their retirement.
“Feeling pressured into an investment opportunity on the spot is a sign of fraud – legitimate organisations will never make you feel this way. Approach any investing offer with caution and seek independent financial advice if you’re unsure.
“Avoid unsolicited phone calls about pensions, it could be a criminal trying to gather personal information to impersonate you and gain access to your pension scheme account, inevitably stealing your hard-earned cash. You can protect your accounts by choosing a strong, secure password and setting up the 2-step verification option.”
Remain vigilant against unwanted telephone calls
Scammers frequently utilise cold calling tactics in their attempts to catch pensioners off guard. Often, these fraudsters can prove remarkably persuasive, particularly when posing as legitimate representatives or bogus company entities.
Additionally, should you receive any telephone contact concerning your pension, the advice is to terminate the call immediately and contact your pension provider directly to confirm whether they have attempted to reach you.
Prior to implementing any significant modifications to your pension arrangements, it is advisable to first obtain professional financial guidance from a qualified individual or organisation. This becomes particularly crucial when someone attempts to contact you and applies pressure to make an investment decision.
Gaucho Rasmussen, executive director of Regulatory Compliance at The Pensions Regulator, which leads PSAG, said: “These statistics are another alarming wake-up call and reveal the shocking reality of how much money is stolen from hardworking savers in just one year. Fraudsters are ruthless, using fake investment deals and impersonation scams to exploit vulnerabilities and get their hands on savers’ hard-earned pensions.
“We urge every saver to ‘stop, think and check’ to protect their pension as if their future depends on it – because it does. That’s why PSAG fully backs this campaign from Action Fraud as we fight back against criminals who devastate lives.”
