A number of individuals have lost more than £1m in pension savings, as a result of fraud, according to the latest figures published by The Pensions Regulator.
This data was provided by Project Bloom, the multi-agency group that has been set up to tackle pension scams.
Although only a handful of people have reported losing sums of this size, Action Fraud – part of Project Bloom – said the average loss reported was £91,000 in 2017.
It adds that figures could be significantly higher, as it is believed that the majority of scam victims never contact the authorities.
Many of these fraudsters contacted consumers via cold calls, often offering a free pension review.
This month the FCA imposed a ban on cold calling, with firms that flout these rules facing fines of up to £500,000.
TPR’s executive director of frontline regulation Nicola Parish (pictured above) says: “The average loss of a victim is £91,000 but this data show that people can also lose much, much more. However large your pension pot, you must be vigilant and able to spot and avoid a scam.”
Action Fraud’s director Pauline Smith adds: “These statistics prove that the consequences of falling victim to a pension scam can be devastating. Victims can lose their life savings and are left facing retirement with little or no income.”