Warning to Protect Your Pension with roughly £48,000 lost to pension fraud every day last year

Savers and those reaching retirement age are being warned to protect their pensions and look out for criminals trying to catch people out of their life savings, with Action Fraud revealing a total annual loss of £17,567,249 across the country in 2024. This equates to roughly £48,129 lost to this type of fraud per day.

Data reveals there were 519 reports of pension fraud in total and £17,567,249 lost in 2024, with an average loss of £33,848 per person. In Suffolk there were three reports, the joint-second lowest figure.  

Reporting analysis suggests the two most prevalent ways criminals targeted victims were investment fraud pressuring tactics, and account takeovers of a victim’s pension scheme by impersonating them.

Action Fraud, with support from the Pension Scams Action Group (PSAG), launched a pension fraud awareness campaign, warning people to take extra measures to protect their pension scheme accounts and to be cautious of investment opportunity offers from criminals that could be targeting them.

Chief Superintendent Amanda Wolf, Head of Action Fraud and the National Fraud Intelligence Bureau (NFIB), said: “When a person has their life savings swiped away by ruthless criminals, it can leave a devastating impact and leave people in limbo – that’s why we’re urging people to stay alert to the tactics of criminals targeting those who are saving and investing for their retirement.

“Feeling pressured into an investment opportunity on the spot is a sign of fraud - legitimate organisations will never make you feel this way. Approach any investing offer with caution and seek independent financial advice if you’re unsure.

“Avoid unsolicited phone calls about pensions, it could be a criminal trying to gather personal information to impersonate you and gain access to your pension scheme account, inevitably stealing your hard-earned cash. You can protect your accounts by choosing a strong, secure password and setting up the 2-step verification option.”

Gaucho Rasmussen, Executive Director of Regulatory Compliance at The Pensions Regulator, which leads PSAG, said:

“These statistics are another alarming wake-up call and reveal the shocking reality of how much money is stolen from hardworking savers in just one year. Fraudsters are ruthless, using fake investment deals and impersonation scams to exploit vulnerabilities and get their hands on savers’ hard-earned pensions. We urge every saver to ‘stop, think and check’ to protect their pension as if their future depends on it - because it does. That’s why PSAG fully backs this campaign from Action Fraud as we fight back against criminals who devastate lives.”

How can you protect yourself against Pension fraud?

Secure your online pension account: the account you use to manage your pension should have a different password to all of your other accounts. Use three random words to create a strong and memorable password, and enable 2-step verification (2SV). 

Ignore unsolicited calls about your pension: cold calling about pensions is illegal and likely a sign of a scam. If you’re thinking about changing your pension arrangements, you should get financial guidance or advice beforehand. 

Investment opportunities: don’t be rushed into making an investment. Remember, legitimate organisations will never pressure you into investing on the spot. 

You should treat investment opportunities with extreme caution if there’s: 

• pressure to invest (for example: time-limited offers) 
• downplayed risk of losing your money 
• promised returns that sound too good to be true

Remember to Stop! Think Fraud and find more information on how to protect yourself from fraud here: Stop! Think Fraud - How to stay safe from scams

What can you do if you have been a victim of pension fraud?

Report pension scams: If you’re worried about a potential pension scam or you think you may have been contacted by a criminal, report it to Action Fraud at actionfraud.police.uk or by calling 0300 123 2040.

If you have made a payment: Inform your bank or pension provider as soon as possible, they can help you prevent any further losses. Monitor your bank and pension statements regularly for any unusual activity.