£17.7 million was lost to pension fraud in 2023, with an average loss of £46,959 per person.

The figures released by Action Fraud in October 2024 also reveal that there were 559 reports of pension fraud in total last year.

A new video, released by The Pensions Regulator, shows the devastating impact of falling victim to pension fraud. It tells the story of 60-year-old nurse, Pauline who was scammed out of £45k worth of hard-earned retirement savings.  

Pauline’s story shows just how dangerous scammers are and the detrimental impact they can have on your future. Watch it here Pauline warns pension savers to be scam aware (6min) - YouTube

Scams are on the rise – know the red flags

Action Fraud has warned scams are on the rise again. It is absolutely vital pension savers know what red flags to look out for so they can recognise potential threats and keep their retirement income safe.

The most common warning signs are:

• Unexpected contact – we’ll never contact you out-of-the-blue about your pension. Cold calling was banned in 2019.
• Promise of high or guaranteed returns – if they sound too good to be true, they probably are.
• Free pension reviews - check who you’re dealing with. Callers may claim they’re from government-backed bodies or other organisations to trick you into giving them information.
• Access to your pension before age 55 – don’t fall for offers of early access to your pension. Most members can’t claim it earlier.
• Pressure to act quickly - never feel rushed into making a decision - take your time to check things over!

If you can recognise any one of the above signs, you should terminate any contact you’re having and report it to Action Fraud at actionfraud.police.uk

Take extra care over the festive period

With the festive period upon us, scammers will likely try and take advantage of the hustle and bustle many of us will experience.

You should stay on your guard and question any unexpected contact regarding your finances.

The Christmas period provides a perfect opportunity for scammers to do what they do best, and the result can be devastating for the victim.

Seek advice about anything to do with your pension

Scams come in lots of guises and are getting harder to spot. As a rule of thumb, you should always get impartial information and FCA-regulated advice before you take any action with your pension.

You can find a register of Independent Financial Advisers (IFAs) at unbiased.co.uk. An IFA will help you understand your pension, the options available, and how to manage your finances.

For more information about pension scams visit fca.org.uk/scamsmart.

You can also visit MoneyHelper.org.uk for free pensions guidance and information.