Citywire for Financial Professionals
Stay connected:

View the article online at

Pension scheme fraud on the rise following freedoms

Pension scheme fraud has doubled over the last two years, as freedoms hand new opportunities to scammers.

Pension scheme fraud on the rise following freedoms

Pension scheme fraud has doubled over the last two years, research by accounts and audit firm RSM suggests.

In a survey of 142 scheme trustees, secretaries and pension managers conducted in September this year, 37% reported they had experienced some kind of pension fraud, compared to 17% in the same survey in 2013.

The respondents who experienced fraud said pension transfers and other member transactions were the areas most often targeted by fraudsters. Over half said they had identified requests for member transactions they suspected were scams.

The RSM survey also suggested many trustees were breaching The Pension Regulator's recommendations over fraud detection and prevention systems. Just over a quarter (26%) did not know that they were responsible for maintaining the relevant controls, and 40% said they had not tested their internal controls within the past 12 months.

Third-party administered schemes tested their controls least regularly, RSM found, and had suffered the most fraud, while 47% of trustee boards had not received training on mitigating fraud risk, down from 57% in 2013.

RSM head of pensions Ian Bell said: ‘The pension freedoms introduced in April 2015 have transformed the pensions landscape for savers, but also created an environment in which fraudsters see an opportunity to prey on savers’ confusion by offering questionable investment opportunities.

‘Clearly there is much to be done in terms of educating pensions savers, but schemes also have to share the responsibility.’

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts

In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

More about this:

What others are saying


Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add to your safe senders list so we don't get junked.


Charles Stanley drops Woodford from fund buy list

by Daniel Grote on May 22, 2018 at 10:57

Sorry, this link is not
quite ready yet