Pension scam crackdown gains 100 pledges
The Pensions Regulator (TPR) has secured over 100 commitments from pension providers, trustees, and administrators in its latest effort to fight fraud. The campaign launched just one month ago.
By early December, 117 organizations had joined the initiative. Three master trusts, managing 50,000 savers, were among those who signed. Another 37 participants have since verified their compliance, confirming they implemented required protections—due diligence checks, member warnings, and scam reporting procedures.
Signatories agree to six key actions:
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- Warn members regularly about scam risks.
- Encourage those seeking cash drawdown to contact The Pensions Advisory Service for guidance.
- Train staff to recognize scam red flags and best practices for transfers.
- Conduct thorough due diligence on transfers and document procedures.
- Communicate concerns to members if high-risk transfers are identified.
- Report suspected scams to authorities and inform affected members.
Nicola Parish, TPR’s Executive Director of Frontline Regulation, described the early response as strong but emphasized the need for wider involvement. She stated that pension scammers devastate lives and urged every trustee, administrator, and provider to join the effort. Parish highlighted the duty to protect savers as a priority.
Fraudsters often target individuals transferring funds, offering false promises of high returns or early access to cash. Victims frequently lose their entire retirement savings, with little chance of recovery. The campaign focuses on closing gaps fraudsters exploit, particularly in transfer requests where pressure tactics or fake investments are common.
TPR introduced a scams training module as part of its Trustee Toolkit, which has been completed 1,220 times. The module includes:
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- Common warning signs of pension scams.
- Guidelines for communicating risks to members, both routinely and during transfers.
- Questions to assess potential scam exposure.
- Standards for due diligence on transfers.
The toolkit is accessible to trustees, advisers, and providers on TPR’s website, where organizations can also sign the pledge. While the commitments show progress, the regulator recognizes that ongoing effort is necessary, especially as scammers evolve their methods.
Nicola Parish stressed the importance of adopting best practices for transfer due diligence. Prevention, not just reaction, is the campaign’s objective.
