The pensions watchdog has issued an urgent alert after hundreds of thousands of pounds was stolen from retirement pots. Analysis of reports found that around £500,000 has already been lost, with a further £2.5million potentially at risk between 2021 and 2025.
The Pensions Regulator (TPR) said scammers are increasingly using stolen personal details to bypass security checks, allowing them to change bank information and siphon off hard-earned retirement savings. In some cases, crooks have set up fake pension accounts in victims’ names and transferred funds into them before the money disappears.
The watchdog has now issued a scam alert to more than 35,000 pension industry professionals, urging them to urgently tighten security checks and monitor suspicious activity.
Experts say criminals typically obtain personal information through hacked emails, intercepted post or by tricking savers into revealing key details that allow them to pass identity checks.
Once inside the account, fraudsters can redirect payments or move pension funds without the member realising until it is too late.
Gaucho Rasmussen, executive director for enforcement and legal at TPR, warned the industry that scammers are relentless when it comes to targeting retirement savings.
He said: “Fraudsters will stop at nothing to get their hands on savers’ pension pots. And no one is immune. We are urging the pensions industry to act immediately to protect savers by strengthening their defences and ensuring their members do the same.
“As a pensions professional, you are the first line of defence against scammers and it’s vital you also report any suspicions to the new Report Fraud service.”
Officials said 90% of the intelligence behind the alert came directly from pension trustees and administrators, highlighting the importance of reporting suspicious activity. The alert has been issued jointly with the City of London Police, which runs the UK’s new national fraud reporting service, Report Fraud.
Chris Bell, service delivery director at City of London Police, warned that criminals will go to extraordinary lengths to impersonate victims.
He said: “It’s important we collaborate with our partners to ensure every measure is taken by both industry and savers to protect pension pots – criminals will go to great lengths to impersonate and try to steal lifetime savings. That’s why Report Fraud, which is run by the City of London Police, supports this alert to urge everyone to protect their pension accounts and stay vigilant to fraudsters attempting to gain unauthorised access.
“Anyone who suspects fraudulent activity should tell Report Fraud. Every report counts – this new service is designed to enhance intelligence sharing across industry and the public and contributes to warnings like this.”
The regulator said a spike in impersonation fraud reports involving UK pension members living in Africa was recorded in 2025, though it warned that the risk applies to savers across the world.
Among the main tactics used by scammers are identity theft, fake duplicate accounts, exploiting weak passwords and even making fraudulent death claims to divert pension funds.
TPR is now urging pension schemes to review identity verification checks, strengthen data security and encourage members to use two-step verification and stronger passwords to protect their accounts.
Savers are also being told to be wary of unexpected requests for personal information, even if the message appears genuine.
Anyone who believes they have been targeted by scammers should report it immediately through the Report Fraud service online or by phone. Details can be found here.
