Nearly £2 million was lost to pension fraud in the first three months of 2021, new figures have revealed.
The research, published by Action Fraud, the UK’s national reporting centre for fraud and cybercrime, highlights the risk of fraud and the actions you can take to protect yourself.
According to the study, pension scam reports have steadily declined over the last six years, falling from 1,788 in 2014 to 358 in 2020.
But 2021 has seen a flood of new fraudulent activity, with pension scam reports increasing by almost 45 per cent in the first quarter compared to the same period last year.
However, the “true scale” of pension fraud could be “much higher” than what is being reported, as victims “often don’t realise they have been scammed until many years later”, Action Fraud warns.
The department says pension scams are hard to detect, with fraudsters becoming increasingly “articulate and financially knowledgeable”, with “credible-looking websites, testimonials and materials that are hard to distinguish from the real thing”.
However, scams usually involve the promise of free pension reviews, higher returns, help to release cash from your pension (even if you are under the age of 55), unusual, “too good to be true”, or time-sensitive offers, or complicated and long-term arrangements – so the scammer can make off with your money before you realise something is wrong.
Commenting on pensions scams, Pauline Smith, Head of Action Fraud, said: “We know pension fraud can have a devastating impact, both financially and emotionally, but any one of us can fall victim to a fraud and it’s nothing to feel ashamed or embarrassed about.”
She added: “It’s incredibly important that instances of pension fraud, and attempted scams, are reported to Action Fraud. Every report helps police get that bit closer to the people committing these awful crimes. Reporting to Action Fraud also allows our specialist victim-support advocates to provide people with important protection advice and signpost them to local support services.”
To learn more about pensions scams and how to report them, please click here.
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