The good news is fewer retirement savers are losing money to pension scammers – but the amount stolen is increasing.
Figures from the City of London police show a dramatic drop in pension fraud over the past two years, coinciding with a multi agency task force taking on the fraudsters.
But the average cash stolen in 2015 was £5,680 from 1,910 cases, compared with an average loss of £28,688 from 652 cases in the 12 months ending March 2016 and then an average £51,970 stolen in 250 cases during the year ending March 2017.
The average age of victims was 53 years old, although the youngest was 20 and the oldest 103.
All the thefts were reported to the National Fraud Intelligence Bureau (NFIB).
Suspected scammers blocked
Why the amount stolen is increasing is not fully understood.
One reason could be that in the past, only actual lost cash was reported, while the latest reports include the value of the whole fund.
Meanwhile, more pension providers have revealed how many suspected scams they are intercepting following data from the Phoenix Group a few days ago.
Phoenix revealed that 1,393 transfers totalling £29.1 million had been blocked since April 2013.
Now, Standard Life has disclosed since April 2015, 128 transfers involving £7.2 million were blocked, including 74 last year worth £2.3 million.
In 2016, Aegon stopped 131 transfers worth £3.04 million.
These figures are not included in the police disclosure.
Bogus investments
Police statistics suggest pension liberation fraud has accounted for losses of £42 million to retirement savers since April 2014, when then Chancellor George Osborne introduced pension freedom rules.
Jamie Jenkins, head of pensions strategy at Standard Life, said: “Most pension providers are carrying out considerable checks to identify any suspicious transfers or fraudulent schemes, and many transfers are being stopped as a result.
“However, with people now able to access their pension savings at the age of 55, we are seeing renewed attempts by scammers to target those who have already released a cash sum from their pension.
“Often the scams take the form of high risk or simply bogus investments. Advisers are very alive to this growing problem and play a key role in ensuring their clients aren’t being duped by offers that are – quite literally – too good to be true.”
