Around £500,000 has already been lost
The pensions watchdog has sounded an urgent warning after hundreds of thousands of pounds was lost from retirement funds. New reports show that £500,000 has already been lost, with a further potential risk of £2.5million between 2021 and 2025
The Pensions Regulator (TPR) revealed that con artists are increasingly using stolen personal data to circumvent security measures, enabling them to alter bank details and drain hard-earned pension savings. In certain instances, criminals have established bogus pension accounts in victims’ names, transferring funds into them before the money vanishes.
The watchdog has consequently issued a scam alert to over 35,000 pension industry professionals, urging them to bolster security checks quickly and keep an eye on suspicious activity.
Experts indicate that criminals typically acquire personal information via hacked emails, intercepted post or by duping savers into disclosing crucial details that enable them to pass identity verification. Once they’ve infiltrated the account, fraudsters can reroute payments or shift pension funds without the member noticing until it’s too late.
Gaucho Rasmussen, executive director for enforcement and legal at TPR, cautioned the industry about the relentless nature of scammers targeting retirement savings.
He said: “Fraudsters will stop at nothing to get their hands on savers’ pension pots. And no one is immune. We are urging the pensions industry to act immediately to protect savers by strengthening their defences and ensuring their members do the same.
“As a pensions professional, you are the first line of defence against scammers and it’s vital you also report any suspicions to the new Report Fraud service.”
Report suspicious activity
Officials revealed that 90% of the intelligence underpinning the alert originated directly from pension trustees and administrators, underscoring the significance of reporting suspicious activity. The alert has been issued in partnership with the City of London Police, which operates the UK’s new national fraud reporting service, Report Fraud.
Chris Bell, service delivery director at City of London Police, cautioned that criminals will resort to extreme measures to impersonate victims. He said: “It’s important we collaborate with our partners to ensure every measure is taken by both industry and savers to protect pension pots – criminals will go to great lengths to impersonate and try to steal lifetime savings.
“That’s why Report Fraud, which is run by the City of London Police, supports this alert to urge everyone to protect their pension accounts and stay vigilant to fraudsters attempting to gain unauthorised access. Anyone who suspects fraudulent activity should tell Report Fraud. Every report counts – this new service is designed to enhance intelligence sharing across industry and the public and contributes to warnings like this.”
The regulator reported a surge in impersonation fraud cases involving UK pension members residing in Africa in 2025, but cautioned that the risk is applicable to savers globally. Scammers primarily employ tactics such as identity theft, creating fraudulent duplicate accounts, exploiting weak passwords and even submitting bogus death claims to misdirect pension funds.
TPR is now advising pension schemes to reassess identity verification checks, bolster data security and urge members to utilise two-step verification and robust passwords to safeguard their accounts. Savers are also being advised to be cautious of unexpected requests for personal information, even if the communication seems authentic.
Anyone who believes they have been targeted by scammers should report it immediately through the Report Fraud service online or by phone. Details can be found here.
