On the go: The head of a transparency pressure group has written to the chair of the work and pensions committee to request it opens an inquiry into the scope and extent of pension scams.
Andy Agathangelou, founder of the Transparency Task Force, wrote on Friday to Labour MP Stephen Timms, chair of the committee, on the grounds that it is uniquely placed to shed light on the number of scams committed and the damage they have done.
“It is extraordinary that we do not even know how much money has been lost to pension scams,” Mr Agathangelou said.
“Certainly, it is hundreds of millions of pounds every year, more likely billions. Many people have fallen victim of [sic] pension scamming, and most believe this has multiplied during the pandemic. One organisation claims one in three Britons have been the target of a scam during lockdown.”
Pensions Expert reported in May on figures released by financial services company Canada Life, which found that of the 5.2m people who had been victim of or knew a victim of a fraud carried out since the start of the Covid-19 outbreak, one in five had been targeted by a pension scam.
Additionally, as reported earlier this month, research by Action Fraud showed losses of more than £5m to scams, of which pension scams made up the majority. Commenting at the time, Charles Counsell, chief executive of the Pensions Regulator, noted that the figures “once again show the true devastation of scams”.
“We know, on average, victims of pension scams lose £82,000,” he said
Mr Agathangelou’s letter continued: “We believe an investigation by your committee can make a real difference in putting a stop to these practices, which are opposed by politicians of all persuasions, but where a fragmentation between regulators, policymakers, legitimate pension providers and law enforcement has meant the scammers continue to prey on the public.
“Pension scams is an issue that many members of the Transparency Task Force are concerned about, particularly, of course, our members that are pension scam victims,” he added.
In response, a Work and Pensions Committee spokesperson directed Pensions Expert to a report published Monday, in which the committee vowed to look into the issue.
"We welcome the apparent alertness that the Pensions Regulator, the Money and Pensions Service, and the Financial Conduct Authority have shown to the increased risk of pension scams," the report states.
"They have tried proactively to warn pension savers about the risks they face."
While the Committee approved of the focus on preventative warnings, nevertheless the report added: "The fact remains that some people will, sadly, fall victim to scammers. In most cases, they are unlikely ever to recover the money they have lost. We intend to undertake detailed work on pension scams in the near future.”
