Men twice as likely to fall victim to pension transfer fraud

Men are almost twice as likely to be at serious risk of pension transfer fraud than women, according to a new report. Over one in ten (11%) of transfers showed warning signs of a scam in 2021. This compares to 6% of transfers by women, according to research from XPS Pensions Group. Higher transfer values were also more likely to show signs of scams. The average size of a pension transfer was £211,000 across 2021, while the average size of a transfer demonstrating the most serious warning signs of a scam was £279,000. The report comes as pension providers implement legislation from the Department for Work and Pensions. The pension transfer ‘flag’ system aims to protect pension savers from scams. Pension providers have the power to block transfers which demonstrate a regulatory red flag for a scam, such as a member receiving advice from an adviser without the correct permissions, a member requesting a transfer after unsolicited contact from a third party or a member feeling pressured to transfer. Providers can also ‘pause’ transfers which demonstrates less serious ‘amber flags’ until a member is able to get additional guidance. Helen Cavanagh, client lead for member engagement at XPS Pensions Group, said: “A lot of the red flags which we see plaguing transfers are related to advisors who do not have the correct permissions to provide such advice. “It’s crucial that members receive quality advice from a properly authorised, experienced advisor if they are to get the best outcomes, and schemes have an important role to play in not only providing access to that advice, but also blocking or pausing transfers that they suspect may be fraudulent.” For the figures, XPS’ report looked at pension transfers examined by XPS Pension Group’s Scam Protection Service in 2021. In total, 1918 cases were reviewed, with 52% demonstrating a warning flag indicating a possible scam.

Men twice as likely to fall victim to pension transfer fraud

Related items

News from Twitter