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A total of £1.8 million has already been lost to pension fraud this year, new figures have revealed.
While new data from Action Fraud recorded a steady fall in pension scam reports from 1,788 in 2014 to 358 in 2020, a spike has been reported so far this year, with 107 reports of pension fraud received in the first three months of 2021.
“Criminals are malicious and unapologetic when it comes to committing pension fraud. They are motivated by their own financial gain and lack any kind of empathy for their victims, who can often lose their whole life savings to these scams,” said Pauline Smith, head of Action Fraud.
Action Fraud has launched a national awareness campaign to remind the public about the importance of doing their research before making changes to their pension arrangements.
It warned that pension scams often include free pension reviews, “too good to be true” investment opportunities, or offers to help release money from a pension even for people under 55.
Sadly, Action Fraud warned, the true scale of pension fraud is likely to be much higher than what is being reported.
Pension scams are devastating with victims potentially losing life-changing sums,” said Nicola Parish, the Pensions Regulator’s executive director of frontline regulation.
“Savers must be cautious about making decisions about money that may have taken a lifetime to build, as it can be snatched away in an instant.”
Some simple steps to protect yourself from pension scams