Department for Work and Pensions: Protection Measures Against Pension Scammers

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Department for Work and Pensions: Protection Measures Against Pension Scammers

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As of Monday 8th of November, new measures have been introduced to stop fraudsters from committing pension fraud. These new regulations have taken effect on the 30th of November 2021.

The new system has given stronger authority to scheme managers and pension trustees to manage potential scams, where a ‘red flag’ will be attributed to an illegitimate scheme, stopping it completely. Whereas an ‘amber flag’ will be given to suspicious transfers, giving enough time to the sender to prove their authenticity.

Many pension scammers lure pension-savers into ‘too good to be true’ schemes, offering perks such as early access to their pension fund, pension reviews that are free of charge as well as many other offers that are time-limited; further enticing their audience. Once lured into the offers that are advertised, people are tricked into transferring their savings into the fake scheme consequently losing all of their funds.

Minister Comments

Guy Opperman, the minister for Pensions has stated:

“We are tracking the scourge of pension scams in practical terms to safeguard pensioners’ hard-earned savings.

These measures will provide better protection for savers.”

Senior Pensions and Retirement Analyst at Hargreaves Lansdown, Helen Morrissey said:

“Having witnesses the real damage that pensions scams can inflict on an individual’s retirement I welcome the new transfer regulations which look to make transfers safer. I am optimistic that over time statuary clarity regarding the level of due diligence expected of trustees and additional information and guidance to be given where appropriate to those planning to transfer, will help combat pension scams, and also reduce the number of transfer complaints to The Pensions Ombudsman.”

The team at HDH Accountants urges everyone to be vigilant with their pensions. If you require additional support, get in touch with us by calling or requesting a call back for a more convenient time. 

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