Employers are being urged to help workers protect their retirement savings from fraudsters, as part of this year’s Scam Awareness campaign.
This campaign is organised by Citizens Advice. Figures from Action Fraud show that pension scams can be particularly devastating, with victims losing an average of £33,848 each. In total this type of fraud cost victims more than £17.5m in 2024.
The most common scams involved investment fraud using high-pressure tactics and account takeovers, where criminals impersonated victims to access their pension funds.
As a result WEALTH at work is urging both employers and pension trustees to take steps to protect workers and scheme members.
Jonathan Watts-Lay, Director at WEALTH at work, warns that scams often appear legitimate. “Fraudsters can sound knowledgeable and even use personal details to build trust,” he says. “People need to stay vigilant and take time before making any decisions.”
Employers and trustees, he says, are the first line of defence. “Providing financial education and guidance at retirement helps individuals understand their options and the risks involved,” explains Watts-Lay. “Arming people with the facts about what they can and cannot do with their pension can prevent costly mistakes.”
By promoting awareness and offering trusted financial education, employers can play a crucial part in reducing pension fraud and helping members safeguard the savings they’ve worked hard to build, and potentially jeopardising retirement plans.
Watts-Lay encourages savers to check that any firm they deal with is registered with the Financial Conduct Authority (FCA) and to use the FCA’s ScamSmart website to identify potential threats. He also advises caution when receiving unsolicited contact via social media, phone, or email, and to report suspicious activity to Action Fraud, Police Scotland or Advice Direct Scotland, depending on location.
