Pension fraud in the period following the introduction of the pension freedoms could be 25 per cent higher than initially predicted, City of London Police figures suggest.

Statistics obtained by AJ Bell have shown that the original figure of £10.6m pension fraud losses that were reported six months after the introduction of the freedoms has been revised to £13.3m.

The higher figure is a result of victims updating their reports to reveal the full amounts lost.
Overall, the increased losses reflect a 146 per cent increase from £5.4m in the corresponding period in 2014.

The revised number also means the total pension fraud losses recorded by City of London Police has surpassed the £40m mark since it began tracking in May 2013.

AJ Bell senior analyst Tom Selby commented: “Judging by this data, the post-freedoms pension fraud spike was worse than we had previously feared, and yet the government continues to sit on its hands when it comes to taking meaningful action to deter scammers.

“A broad coalition of observers, from former Pensions Minister Baroness Ros Altmann to advisers and providers, agree banning cold calling could make a real difference in the fight against pension fraud.”

A current petition asking the government to ban pensions cold calling as part of an initiative to tackle pension fraud has obtained 2,000 signatures so far.

“More than £40m of pension fraud losses have been reported to City of London Police since May 2013, while estimates of total losses UK-wide from pension-related fraud – including investments – run into the hundreds of millions. This does untold damage to both the victims whose long-term savings are decimated, and to the reputation of pensions as a whole,” Selby added.

“Prime Minister Theresa May has indicated an appetite for intervention in various markets – she should start by strengthening the Government’s response to the threat of pension scams.”

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