Pension scams continue to happen at an alarming rate, with criminals using increasingly sophisticated tactics to target people’s savings. Recent figures show that fraudsters are stealing tens of millions of pounds from pension holders every year and the consequences are devastating.
As part of our ongoing commitment to advocate for and protect our members, CSPA recently met with The Pensions Regulator, where we found out about the work of the Pension Scams Action Group (PSAG) and the scale of the problem.
Data from Action Fraud reveals the true cost of pension scams:
- £17.7 million was stolen from pension savers in 2024
- 519 cases of pension fraud were reported that year
- Victims lost an average of £33,848 each
This equates to over £48,129 lost every single day to pension scammers.
These are not just numbers, they represent life‑changing personal losses. Many victims are approaching retirement and have no way to rebuild their pension pots. Beyond the obvious financial impact, victims often describe feelings of shame, guilt and deep anxiety about their future.
Why is Pension Fraud Rising?
Investment Fraud Pressure Tactics – Fraudsters push savers into transferring or investing money quickly, using high‑pressure sales methods and promises of high returns.
Account Takeovers and Impersonation – Criminals gain access to pension accounts by impersonating scheme members and stealing their identities, often using information gathered through phishing or cloned websites. As scammers adopt more advanced digital methods, including increasingly convincing AI‑generated communications, the risk continues to escalate.
Introducing the work of the Pension Scams Action Group
During our meeting with The Pensions Regulator, CSPA was briefed on the work of the Pension Scams Action Group (PSAG) a multi‑agency taskforce dedicated to tackling pension scams through education, prevention, intelligence sharing and enforcement.
PSAG’s core members include:
- Department for Work and Pensions (DWP)
- Financial Conduct Authority (FCA)
- His Majesty’s Treasury (HMT)
- Money and Pensions Service (MaPS)
- National Economic Crime Centre (NECC)
- Pension Scams Industry Group (PSIG)
- The Pensions Regulator (TPR)
They are also supported by a wider network of industry and law‑enforcement partners. Through its partnerships, PSAG brings together the skills, legal powers and data needed to track, disrupt and prosecute fraud operations. PSAG acts as the national hub for pension‑fraud intelligence and co-ordination. Its work includes:
- Improving public awareness of pension scams
- Building a comprehensive intelligence picture of scam activity
- Co-ordinating enforcement and regulatory interventions
- Supporting legislative changes to help prevent future scams
- Promoting non‑legislative good practice across the pensions industry
- Providing victim support to help minimise long‑term harm
How PSAG Works
The Pensions Regulator, City of London Police, National Economic Crime Centre and many industry bodies work together to share intelligence quickly and take decisive action. This co-ordinated approach allows agencies to respond faster, reduce duplication and support better outcomes for savers.
The Pension Schemes Act 2021 gave pension trustees new powers to stop suspicious transfers, preventing thousands of people from being scammed. A ban on pensions cold calling, introduced in 2019, removed one of the most common entry points for scammers.
Major criminal prosecutions show the impact of co-ordinated enforcement. In one notable case, two fraudsters received more than 10 years in prison for a £13 million pension scam, with over £13.2 million paid back to victims through the Fraud Compensation Fund.
PSAG partners have led large‑scale campaigns, including ScamSmart and Stop! Think Fraud, to help the public recognise red flags and avoid suspicious offers. More than 700 schemes have pledged to follow The Pensions Regulator’s scam‑prevention guidance, helping standardise strong protections across the industry.
Stay Vigilant & Stay Informed
Pension scams are evolving, persistent and deeply harmful, but they are not unstoppable. Through co-ordinated enforcement, better intelligence sharing, strong industry standards and informed savers, we can all play a part in reducing the threat.
CSPA will continue to work closely with The Pensions Regulator, PSAG and industry partners to ensure our members remain protected.
Upcoming Webinar: Fighting Pension Fraud – 18 March 2026
The Pensions Regulator will host its latest Pension Scams Action Group (PSAG) webinar, Fighting pension fraud, on Wednesday 18 March 2026 from 2:30pm – 3:30pm. This free, one‑hour webinar is designed for pension professionals; including trustees, administrators and advisers and will feature:
- Updates from PSAG partners
- A session from City of London Police on Report Fraud, the new service replacing Action Fraud
- Guidance on spotting warning signs
- Tools for better member education
The webinar will be followed by a live Q&A, where you can put your questions directly to experts. Once registered, you’ll also gain access to the Attendee Hub, where you can submit questions in advance, view the recording and download supporting materials.
Register now: https://pensionscamsactiongroup-webinar-march-2026.tprevents.org.uk/home
Report a potential scam
You should report if:
- you believe a scam has already happened
- a red flag is raised when making a transfer
- you suspect that a pension scam is taking place or are suspicious of those involved: this may be because of other risks you have noticed such as amber flags in a transfer request
In England, Northern Ireland and Wales you should report fraud or concerns about a potential scam to Report Fraud.
If you live in Scotland, you should call Police Scotland on 101 or Advice Direct Scotland on 0808 164 6000.
Find out more on avoiding and reporting pension scams on The Pension Regulator website: Avoid and report pension scams
