Savers are being urged to stay vigilant and protect their pensions and investments from fraudsters.

Action Fraud has revealed this week that in 2023, it received 559 reports of pension fraud equating to £17,750,635 lost, with an average loss of £46,959 per person.

The national fraud and cybercrime reporting service has launched a pension fraud awareness campaign, warning people to protect their pension pots and investments from fraudsters, by encouraging the public to do their research before making changes to pension arrangements.

Claire Webb, Acting Director of Action Fraud, said: "Criminals will go to great lengths to trick anyone out of their money, in this case, it’s someone’s lifesavings at risk. 

"Losing any sum of money saved for retirement can be devastating. 

“Prevent a fraudster from taking away the hard-earned cash you’ve put towards your retirement by protecting your pension and investments, and doing the research on who you’re dealing with before making any big changes.

“Avoid pension opportunities offered out of the blue, like pension reviews or too good to be true investment opportunities. 

"Don’t let anyone rush you into making big decisions and seek advice from an independent professional service or trusted family and friends.”

Pension fraud often includes free pension reviews, too good to be true investment opportunities, pension transfer opportunities, or offers to help release money from your pension ,even if you’re under 55.

Data also revealed April had the highest number of reported losses, accounting for 15 per cent of total reported losses in 2023. Individuals who go on to report fraud tend to check on their pensions to review their financial positions in the new financial year and only notice the fraudulent activity upon checking their pension’s status.

Here are some steps to protect yourself fraudsters trying to get your pension.

  • Unsolicited communication about your pension: if you get a call out of the blue (a cold call) about your pension, the safest thing to do is hang up. It’s illegal and probably a fraudster. If you get offers via email or text, you should simply ignore them.
  • Seek advice first: if you’re thinking about changing your pension arrangements, you should get financial advice beforehand. If you want to find an adviser, make sure they’re authorised by the Financial Conduct Authority. Never take advice from the company that contacted you, this may be part of the scam.
  • Investment opportunities: don’t be rushed into making an investment. Remember, legitimate organisations will never pressure you into investing on the spot.

What to do if you have been a victim:

  • Report it: if you’re worried about a potential scam, or you think you may have been contacted by a fraudster, report it to Action Fraud online at actionfraud.police.uk or by calling 0300 123 2040. In Scotland, report it to Police Scotland on 101.
  • If you have made a payment: inform your bank as soon as possible, they can help you prevent any further losses. Monitor your bank statements regularly for any unusual activity.