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Equiniti The Pensions Regulator Takes Action

The Pensions Regulator Takes Action To Strengthen Defences Against Pension Scams

Wednesday, 23 April 2025

The Pensions Regulator (TPR) is stepping up efforts to protect savers from pension scams by pushing for closer collaboration, forming strategic partnerships and improving intelligence-sharing across agencies.

According to Action Fraud, a total of £17.7m was reported lost to pension fraud in 2023, with an average loss of nearly £47,000 per person. More worryingly, the Financial Conduct Authority (FCA) estimates just one in five pension scams are reported.

Paul Sweeney, Intelligence Business Lead for TPR’s Pension Scams Action Group (PSAG), outlined TPR’s plans in a recent blog post, highlighting significant progress already made in tackling scams. Sweeney pointed to initiatives such as the ScamSmart campaign, an industry-wide pledge to tackle pension scams, and even a pension scam storyline featured in BBC’s EastEnders as key awareness-raising efforts.

Adapting to the advancing treat of pension scams

Despite these initiatives, Sweeney acknowledged that pension scams are constantly evolving, and calls on the industry to take a more proactive approach in terms of vigilance and awareness. TPR is focusing on early intervention, aiming to prevent scams before they take hold by enhancing its understanding of emerging threats. Sweeney writes,

“Together with our partners, our anti-fraud initiatives include prevention, disruption and punishment of criminal activities. We have achieved this by securing stronger legislation, dismantling fraudulent business models, prosecuting fraudsters, confiscating their assets and barring trustees.”

Strengthening collaboration with law enforcement

A key part of this strategy has been strengthening intelligence gathering. Sweeney writes that TPR has deepened its senior-level partnerships within PSAG to improve the national intelligence picture and identify risks more effectively. To bolster its response, TPR has created strategic secondments, where intelligence specialists are embedded within key agencies, including the City of London Police and the National Economic Crime Centre. This move is designed to improve cooperation between law enforcement and the pensions industry while aligning efforts with wider national fraud strategies. Sweeney notes,

“By placing TPR representatives in these organisations, all parties can leverage each other’s unique expertise and knowledge, bringing together new ideas and insights.”

Industry’s role in preventing scams

While law enforcement plays a vital role, Sweeney stressed that the pensions industry must also be proactive in reporting scams and implementing strong anti-fraud measures. He urged both industry professionals and savers to report suspicions to Action Fraud without delay. Although Action Fraud is currently enhancing its reporting process, with a phased rollout of improvements continuing into 2025, timely reporting remains crucial. Industry reports, in particular, provide valuable intelligence that helps authorities disrupt scams before they escalate. Sweeney suggests that TPR’s strengthened intelligence-sharing arrangements mean these reports will now be analysed more effectively, helping to build a clearer picture of emerging threats.

A united front against pension fraud

Looking ahead, Sweeney reaffirmed TPR’s commitment to refining its approach to tackling pension scams. Through its partnerships, the regulator aims to support law enforcement with the insights and tools needed to take decisive action. He said,

“The fight against pension scams is not only a fight to protect people’s hard-earned savings; it’s also about safeguarding their dreams for a secure and fulfilling retirement. Through PSAG, we’re not just disrupting criminal activity – we’re building a foundation for long-term resilience, ensuring savers’ money is safeguarded for generations to come.”

Technology can help

The advent of the pensions dashboard is expected to drive a demand for people to consolidate their pensions. Transfers are often where the exposure to fraud is easiest. Schemes can be exploited at this point. Yet, the need to expedite transfers in a low cost, efficient manner needs to be balanced with the essential care needed in limiting the opportunity for member accounts to be scammed.

EQ has introduced enhanced and integrated ID & Verification into their platforms that will aide administrators in the ability to identify fraud and reduce losses. Other steps could be taken by the industry to help reduce fraud and speed up transfers through the pensions dashboard.

Innovative pension platform support from EQ

For over 187 years, EQ has been working with pension schemes, members, managers and trustees to deliver innovative retirement solutions. With technology at its core, our pension platforms support clients with all their pension administration needs. If you want to work with a trusted pensions partner on sensitive and highly complex pension data projects that specialises in managing challenges at scale, get in touch.

Find out more about how EQ Retirement Solutions is transforming the retirement and pensions markets with leading administration and technology solutions.

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