On the go: Since 2015, the Insolvency Service has applied to the courts to wind up 24 companies involved in pensions misuse, according to the government agency.
The misuse includes investment scams and cases where pension trustees have failed to carry out their duties properly.
The Insolvency Service, which is warning people to guard their pension savings from fraudsters and negligent trustees, estimated that there have been nearly 3,750 victims connected to the 24 companies closed down, having made £202m worth of contributions.
Following the wind-ups of the 24 companies investigated by the Insolvency Service, eight directors have received a total of 57 years’ worth of directorship disqualifications.
There are further ongoing investigations to make sure rogue directors are prevented from managing businesses.
Tom Selby, senior analyst at AJ Bell, said: “It is horrifying that thousands of retirement savers have fallen victim to cruel retirement scams in recent years. Although it is good news a number of the companies involved have now been wound up, this is likely to be the tip of the iceberg when it comes to pension fraud.”
He noted that some victims will be unaware they have been duped for months or even years, while others will be too ashamed to report what has happened.
Moreover, Selby said it can take a long time for authorities to build a case against companies involved in scam activity, due to limited resources.
The government has recently announced a pensions cold-calling ban to help protect savers.
“The government has made a start in tackling pension fraud by banning cold calling. However, these latest figures are just another reminder of the tragic cost of retirement scams, and the protection of savers must remain front-and-centre for policymakers both in Whitehall and at regulators,” he said.
