Pensions Industry Using AI To Fight Back Against Pension Scams

According to TPR, each of these scam websites could potentially target thousands of savers. Since the launch of the initiative, PSAG has reviewed more than 800 websites, removed 29 high-risk sites and referred 94 cases to partner agencies for further action. The use of AI is allowing the taskforce to act faster and more effectively than ever before.

Smarter tools for a growing threat

Paul Sweeney, business lead for PSAG at TPR, said scammers are becoming increasingly sophisticated in their use of technology, so it is vital the industry responds in kind. He said,

“Scammers often exploit technology to deceive victims and steal their pensions. We are turning the tables on them by using technology to detect and prevent fraud by removing malicious websites.”

Sweeney also emphasised the growing collaboration between agencies, which is helping regulators, police and industry to build a more comprehensive view of emerging threats and respond quickly to new scams. TPR has embedded experts within the City of London Police (CoLP) and the National Economic Crime Centre (NECC) to support real-time information sharing and coordination. This joined-up approach is helping strengthen national enforcement efforts and feed into wider fraud strategies.

New reporting systems to boost intelligence

Improved data sharing is also a key focus for law enforcement. Chris Bell, Service Delivery Director at CoLP, confirmed a new reporting system will soon replace Action Fraud. The new platform, the Fraud and Cyber Crime Reporting and Analytics Service, will enable faster analysis of scam reports and help police forces take earlier action.

Accurate reporting is still a weak spot in the fight against fraud. Despite clear guidance, a recent TPR survey showed only 11% of pension schemes correctly said scams should be reported to Action Fraud. Ahead of the new system going live later this year, trustees are being urged to continue reporting suspicious activity so that authorities can build a clearer national picture.

James Bentley, threat leadership at the NECC, commented,

“By working together, we can stop hard-working pension savers from being scammed in the first place. Scammers, be warned. We will use every tool we can to track you down, disrupt your activity, and prosecute you.”

Rising attacks underline cyber risks

Cyber threats are not limited to scams. Across the UK economy, the scale of cyberattacks is growing. According to the new Cyber Governance Code of Practice, 74% of large businesses and 70% of medium-sized businesses experienced a cyber breach or attack in the last year. For high-income charities, the figure is 66%.

Launched by the government in April, the Cyber Governance Code sets out practical actions that boards and senior leaders can take to protect their organisations. It urges directors to implement cyber strategies, embed a security-first culture across their workforce, and maintain incident response plans to deal with any breaches.

Stuart Leach, partner at RSM UK, said these figures should act as a clear warning to pension trustees.

“Boards are accountable for governance, cyber controls and response planning,” he said. “The first line of defence is often employees, so staff training and education is crucial, particularly with the rise of increasingly sophisticated phishing attacks and fake websites.”

Leach welcomed the new Cyber Governance Code as a valuable framework, but questioned whether voluntary guidance alone will be enough. “Given the scale of the threat and the pace at which it’s evolving, the industry may need firmer requirements to ensure all schemes take the necessary action,” he added.

Trustees must lead the charge

For trustees, this is about more than compliance. It is about protecting savers, maintaining public trust and safeguarding scheme assets. With fraud now operating on an industrial scale and geopolitical tensions adding further risk, pension schemes are becoming more attractive targets. Boards must assess whether their current cyber measures are fit for purpose and make sure they are not relying on outdated approaches or minimal standards. That means developing clear strategies, testing systems and responses, and actively monitoring potential threats – including through third-party suppliers and administrators.

Commenting on the measures announced, Luke Carter, Regulatory Consultant at Equiniti, said,

“These recent initiatives show the power of joined-up thinking. Schemes cannot afford to be passive. As cyberattacks increase in scale and complexity, and as scammers evolve, the pensions industry must evolve too. Using AI, sharing intelligence and embedding stronger governance will help to protect savers and futureproof pension schemes. Whilst Ai is an important piece for combatting scams, the general public also have an important part to play in highlighting any suspicious sites or activity too.”