DWP explores ‘extended measures’ to combat pension scams

In a written answer published to parliament last week, pensions minister Torsten Bell said the government wanted to “strengthen protections and combat any areas of evolving risk”.

Responding to a question on the government’s work on scams posed by Labour MP Adam Jogee, Bell stated: “The government is resolute in its determination to protect pension scheme members from financial harm.

“There is a strong regulatory framework which allows pension scheme trustees to block pension transfers if there is risk of a scam, and we are developing extended measures which seek to strengthen protections and combat any areas of evolving risk.

“The Department for Work and Pensions [DWP] will continue to work closely with partners, including the police, the National Economic Crime Centre and anti-scams industry groups, to identify and disrupt unlawful activity and to ensure appropriate enforcement action is taken against those who exploit or seek to exploit pension savers.

“We will publicly consult on our work to strengthen the transfer process with enhanced protections in the coming months.”

Margaret Snowdon, chair of the Pension Scams Industry Group, told Pensions Expert that she was involved in the work with the DWP, which was set to be “consistent with the new UK Fraud Strategy”.

“The consultation will certainly cover transfer regulations, and I am really pleased about that,” Snowdon said. She added that the work could also include changes to the governance of small self-administered schemes (SSASs), which Snowdon said was “overdue”.

According to Action Fraud, more than £17.5m was stolen through pension scams in 2024. Figures for last year are not yet available.

The UK’s fraud strategy was announced in March last year and involves a focus on international co-operation, as many scams originate from overseas. The UK government is supporting a Global Fraud Summit in Vienna, Austria, next month.