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Fraudsters are employing increasingly sophisticated tactics to steal pension savings, with new figures revealing that over £17.5 million was lost to pension scams last year.
Criminals are not only using high-pressure investment fraud tactics but are also increasingly impersonating savers to gain control of their pension accounts. Below, we’ll explain how these scams work, how to spot the warning signs and how to keep your pension safe.
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The latest figures from Action Fraud show there were 519 reports of pension fraud in 2024, with an average loss of £33,848 per person.
Impersonation is a growing problem. In 2024, the two main ways that criminals targeted these victims were investment fraud pressuring tactics, and impersonating the victim in order to take over their pension.
Separately, an analysis of Action Fraud reports between October 2024 and March 2025 found that almost a third of pension fraud reports included attempted impersonation. More than half (55%) of the reported victims were aged between 50 and 69.
Pension impersonation scams involve fraudsters posing as someone else, with the aim of gaining access to their pension savings.
One increasingly common tactic involves fraudsters hacking into email accounts to access correspondence with their victim’s pension scheme. Using this stolen data, they can then impersonate their victim and contact the pension provider to attempt to change the details of the bank account withdrawals are paid into, so that they can take money from the pension.
In other instances, fraudsters set up fake pension accounts in their victim’s name to enable them to transfer and access the money.
Scammers may also pose as trusted organisations, including the Chartered Trading Standards Institute (CTSI), Financial Conduct Authority (FCA) and Fraud Compensation Fund (FCF), to target pension savers. In some cases they target people who have already been scammed, in a further twist of the knife.
Paul Sweeney, Pension Scams Action Group (PSAG) business lead at the Pensions Regulator, told Saga Money: “Fraudsters have copied FCF and CTSI branding to send texts and letters to pension scam victims, urging them to act immediately to recover compensation. But the scammers’ real aim is to obtain their data and steal their money. This is a cruel second hit on often vulnerable individuals.”
Advances in AI are also making it easier for scammers to produce and send large numbers of emails and to create fake websites.
Paul Hampson, fraud expert and CEO of CEL Solicitors, warns: “Criminals can ask a chatbot to create a professional profile in minutes, complete with a convincing photograph. They can use automations to help them communicate with multiple victims at the same time and make their messages even more convincing than ever before.”
Deepfake technology also enables scammers to create video and audio clips, helping them to seem even more convincing, adds Hampson.
One of the biggest steps you can take to keep your pension safe is to be extra vigilant about your personal data. This means not just your pension details, but also your emails, phone, online accounts, and any documents that contain sensitive information.
Without personal data, it would be very hard for any fraud to take place, says Ross Lacey, director and chartered financial planner at Fairview Financial Management.
“To keep data safe, have strong passwords that are different for each site you visit, and use multi-factor authentication, where a text message code or an app notification is needed to log in alongside the main password,” he adds.
Never share bank details, logins, or pension account information unless you’re 100% sure who you’re dealing with. Always check the firm or adviser you’re speaking to is authorised on the Financial Conduct Authority (FCA) Register.
If you get a phone call about your pension, don’t engage with them if it’s a cold call. If it’s from a company you’re already dealing with, stay safe by saying you’ll call them back, and then do this using the details on the company’s official website or from the FCA Register.
Lastly, never feel rushed into making any decisions about your pension. Talk to a financial adviser if you use one. Or you can speak to the government’s MoneyHelper service for free and impartial guidance. At the very least, speak to a friend or family member before transferring any money.
Hampson says: “They could look into it for you as a second pair of eyes, and make sure everything is correct. They might spot something you’ve missed or offer an outside perspective on whether it seems legitimate.”
Watch out if you see any of these tell-tale signs of a pension scam:
If you think you’ve been targeted by a scammer, report it to Action Fraud on their website or by calling 0300 123 2040.
Don’t forget to include all relevant evidence, such as emails, contact numbers and website addresses, to include in your report.
If you’ve already made a payment and are now worried it might be fraudulent, contact your pension provider or bank as soon as possible as they may be able to prevent further losses. Also monitor your pension and bank statements regularly for any unusual activity.
Visit the Stop! Think Fraud website for more information on how to protect yourself.
The Pensions Regulator says it’s working more closely than ever with its partners, including the City of London Police, to issue warning alerts to the pension industry, as well as to share intelligence to detect threats and take action to prevent them earlier.
According to Sweeney, the regulator is turning the tables on fraudsters by using AI technology to detect fraudulent sites. “We use an AI tool which constantly combs the internet scanning for certain signs that might indicate a scam website. Our intelligence team then carry out a detailed analysis.
“Where there is sufficient evidence, we work with our law enforcement partners in PSAG to get the websites taken down. Each of these fraudulent sites could have had the potential to reach thousands of savers,” he explains.
So far, more than 900 websites have been reviewed, leading to more than 30 high-risk sites being taken down by PSAG. More than 100 sites have also been referred for further investigation.
The Pensions Regulator is also urging pension providers to review and strengthen security, especially around identity verification and account access, and to report suspicious activity to Action Fraud. Currently, most fraud reports come from individual savers or their relatives, not pension schemes.
Sweeney says that the regulator has launched a ‘Pledge to Combat Pension Scams’ campaign to ensure pension schemes warn their members about fraud risks. More than 700 schemes and organisations have signed up so far.
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