The Pensions Regulator (TPR) has launched a new scam-fighting strategy in light of concerns that the cost-of-living crisis may leave savers more vulnerable to scammers.
Amid the rising cost of living and pressures of Covid-19, TPR warned that savers could be lured by offers to access their pension savings early to cover essential household bills or be attracted by fake investments offering high returns that never materialise.
Under the plan, TPR aims to educate the industry and savers on the threat of scams, prevent practices that can harm savers’ retirement outcomes, and fight fraud through the prevention, disruption and punishment of criminals.
The new strategy was confirmed following a joint assessment of the threat from pension scams carried out by TPR and the National Fraud Intelligence Bureau, which found that the threat to pension savings has continued to diversify, both in terms of the overarching methods used to access them and the specific tactics used.
The regulator said that it was primarily, although not solely, concerned with seven kinds of pension scams, which are often seen in combination with one another.
These includes investment fraud, pension liberation, scam pension schemes and providers, clone firms, claims management companies, employer related investment (ERI) breaches, and high fees, often layered through “unnecessarily complex business structures”.
As part of the scam-fighting strategy, TPR has also pledged to work to improve the…
