A BBC Morning Live finance expert has issued a stark warning about the growing threat of pension scams, highlighting that the average victim loses £34,000, while £48,000 is stolen every day in the UK.

£17.5 Million Lost in 2024

Laura Pomfret, the finance expert on BBC Morning Live, cited data from Report Fraud, which showed that 519 pension fraud reports were made in 2024 alone. This equated to over £17.5 million in losses, with an average of £34,000 lost per victim.

Pomfret said, ‘It is their life savings. It’s their retirement plan, and it could be absolutely devastating to an individual, to a family if this happens.’

She explained that pensions are an attractive target for scammers because they often contain large sums of money and are not frequently monitored. ‘You know, you get a paper through the post once in a while; you’re not constantly watching it. And so things can be happening when you’re not quite aware.’

Red Flags and Scam Tactics

Pomfret outlined several warning signs for potential pension fraud, including unsolicited contact and the use of high-pressure sales tactics. ‘If someone contacts you out of the blue, it should immediately raise concern because there isn’t a need for people to proactively contact you about your pension, about investments.’

She also warned against phrases like ‘pension liberation,’ ‘early access,’ and ‘,’ which are commonly used in scamming schemes. ‘These phrases should trigger something in you that should make you feel a bit uneasy because this promise of exceptional profits should be ringing alarm bells.’

Pomfret noted that scammers often use pressure tactics to push victims into making quick decisions. ‘Watch out for ‘you can only do this now,’ ‘this investment is closing,’ or ‘you don’t need to take independent advice.’ Anything like that that makes you feel a bit uneasy when it comes to pensions, you should be staying away from.’

Real-World Impact on Victims

The impact of these scams extends beyond the financial loss. Many victims are nearing retirement and may not have the time to recover the stolen funds. ‘The harm isn’t just then about the money, it’s the consequences that many victims are nearing retirement — you know, they don’t have a long time to suddenly, you know, make that money back again. It can be gone forever.’

Pomfret cited a case where three men were convicted for a fraudulent ‘ethical forestry scheme,’ which stole £70 million from over 3,000 people. The fraudsters used the money to buy luxury homes and cars before disappearing.

Another case involved two men who were found guilty of a fraudulent ‘liberation scheme,’ which stole £3.7 million from vulnerable individuals. ‘This shows that pension fraud can happen at any age, not just as you’re approaching that retirement number.’

Pomfret emphasized the importance of protecting personal data and being cautious about online interactions. ‘We’re all online now of all ages, and so it’s very easy to be targeted very quickly through an ad that looks genuine. Your money is then often put into high-risk schemes such as overseas property or energy schemes, or it’s not put anywhere at all — it’s literally stolen from you and put into the pockets of scammers.’

She urged people to be vigilant and to check their pension statements regularly. ‘Can you go log in? Can you go speak to your provider? If someone’s contacting you out of the blue, that is a bit of a red flag.’

With the threat of pension scams continuing to rise, experts are calling for greater awareness and education to prevent more people from falling victim to these schemes.