Keeping Your Pension Safe

According to Report Fraud, £17.5 million was stolen through pension scams in 2024 – with each victim losing an average of £34,000. Here are two common ways scammers may try to access your pension savings and how you can protect yourself.

Impersonation fraud: Pretending to be you
The Pensions Regulator’s analysis of Report Fraud (formerly Action Fraud) data shows that impersonation fraud is a major issue, with almost a third of pension fraud cases involving impersonation or gaining unauthorised access into accounts.

Scammers may gather your personal information and use it to convincingly pose as you. They can create fake accounts in your name or even contact your pension provider pretending to be you. Their aim is to change your bank details, so your pension payments go to them.

Scammers may also gain enough information to access your online pension account, especially if the account uses a weak or re-used password.

The Trustee and the Plan Administrator, WTW, have strong identity and verification checks in place to help protect members, such as requiring identification and supporting documents before making changes to pension records or payments. However, it’s still important that you take steps to protect yourself too.

How to protect yourself:

• Be cautious about what you share online. Scammers can gather information about you from social media.

• Use strong, non-repeated passwords, with two-factor authentication or biometrics where you can, to prevent scammers from gathering information by hacking into your email or other online accounts.

• Be suspicious - scammers may pose as your bank, pension provider, or even the police to get you to hand over sensitive information. If you receive an unexpected contact from someone claiming to be from a trusted organisation, call them back using their official number or contact details which you can usually find online, not the details they provide.

• Never give out your security details (passwords, PINs, etc.) over the phone or by email. No trustworthy organisation will ask for this.

• Think before you click on links in emails or texts. Phishing messages help scammers gather additional details.

Investment scams: “too good to be true” offers
Some scammers try to trick members into transferring their pensions into fake or high-risk investments. They often:

• Offer a “free pension review”

• Promise unusually high or guaranteed returns

• Claim that they can provide tax-free or early access to your pension

These scams can look highly professional, using authentic-looking documents and websites. But legitimate advisers will never pressure you, guarantee returns, or claim to know ‘legal loopholes’.

How to protect yourself:

• Be sceptical of offers that sound too good to be true.

• Verify any financial firm independently using a number or website you trust.

• Check the company exists on Companies House and is FCA-registered.

• Don’t rush into investment decisions and be wary of high-pressure tactics.

• Check the rules directly with your pension provider.

• Read the Pension Scams Action Group’s leaflet - Steps to stay scam safe.

• Use the FCA’s ScamSmart Investment Checker.

See the impact of a real-life pension scam
In this short video from The Pensions Regulator, a victim shares their story of how scammers stole £45,000 from her pension fund. You can watch the video here.

For more help spotting scams and keeping your pension safe, see our previous article: Can you spot a scammer?