A few weeks ago, we were having a quiet family dinner when my grandma suddenly announced she’d bought a stairlift.

This came as little surprise. At 96 years old and living alone, she’s been finding it harder to get up and down the stairs for some time.

What did cause a ripple of confusion around the table, though, was how the purchase had come about.

“A man came over to measure up the stairs… I couldn’t find the company online… he asked me if I lived here alone… he said he would give me a special discount.”

As the story unfolded, concluding with the news that the stairlift was yet to arrive despite the money having left her account several weeks ago, my family began to exchange pitying looks.

Eventually, my dad leaned over, gently placed his hand on her shoulder and said into her hearing aid: “Mum, do you think you might’ve been scammed?”

Unfortunately, stories like this are all too familiar - and pension scams are no exception.

That’s why this year’s scam awareness campaign by Citizens Advice focuses on educating people about the latest scams and providing practical guidance on how to stay ‘scam aware’.

According to UK Finance’s annual fraud report, there were 3.13 million confirmed cases of unauthorised fraud in 2024, up 14 per cent on the previous year, with total losses reaching £722m.

While scams have always existed, the rapid development of AI over the past year has enabled criminals to create increasingly convincing deepfakes, clone legitimate websites, and craft highly personalised messages that are difficult to distinguish from the real thing.

Indeed, analysis of reports to Action Fraud, carried out as part of The Pensions Regulator’s (TPR) Pension Scams Action Group (PSAG), found that fraudsters are using sophisticated impersonation tactics to target pension savers.

In particular, scammers have been hacking email accounts and using stolen correspondence to impersonate members, then contacting schemes to redirect withdrawals to fraudulent bank accounts.

The consequences are devastating.

Action Fraud revealed that in 2024, £17.6m in pension savings was lost to fraud, with an average loss of £33,848 per person - equivalent to £48,000 stolen every day.

The scale of the threat is echoed in the National Cyber Security Centre’s (NCSC) latest report, which found that nationally significant cyberattacks have more than doubled over the past year, with incidents at major UK retailers such as Marks & Spencer, Harrods and the Co-op exposing just how vulnerable even trusted brands can be.

Action Fraud and National Fraud Intelligence Bureau head, Chief Superintendent Amanda Wolf, described the impact of these scams: “When a person has their life savings swiped away by ruthless criminals, it can leave a devastating effect and leave people in limbo – that’s why we’re urging people to stay alert to the tactics of criminals targeting those who are saving and investing for their retirement.”

And the warning signs for pensions are intensifying. According to XPS Group’s latest Scam Flag Index, the proportion of pension transfers showing potential scam indicators rose sharply in July 2025, with 94 per cent of cases reviewed by its Scam Protection Service raising at least one warning flag.

So, what can be done to combat this rising and evolving threat?

While consumer vigilance is vital, the pensions industry has a significant role to play.

Trustees, providers, and administrators must continue to strengthen verification processes, invest in cybersecurity, and collaborate on intelligence-sharing initiatives, such as PSAG, to stay one step ahead of fraudsters.

Employers and schemes can also help by building scam awareness into financial wellbeing programmes, signposting members to the Financial Conduct Authority’s (FCA’s) ScamSmart and MoneyHelper resources, and using clear, plain-language communications that make complex topics like pension transfers easier to understand.

As Wolf emphasises, consumers should remember that feeling pressured into an investment opportunity on the spot is a sign of fraud.

“Legitimate organisations will never make you feel this way. Avoid unsolicited calls about pensions - they could be from criminals trying to gather personal information to impersonate you and gain access to your pension account.”

Technology, too, can be part of the solution.

The same AI tools that scammers exploit can also be used to detect suspicious patterns, flag inconsistencies in transfer requests, and protect member data through multi-factor authentication and real-time monitoring.

Indeed, TPR and PSAG have already developed an AI tool to detect scam websites, protecting users from online harm.

And despite the rising threat, there are positive signs of progress.

TPR recently confirmed that more than 2,000 pension scam victims have received compensation to help rebuild their lives, with £81.5m paid to 58 pension schemes whose members were defrauded by scammers.

Ultimately, scammers thrive on confusion, isolation and trust.

Whether it’s a vulnerable young saver or a 96-year-old grandmother, the tactics may differ, but the goal is the same - to separate people from their hard-earned money.

As scam awareness campaigns reminds us, protecting our savings starts with awareness, vigilance and collaboration.

For the pensions industry, that means not only defending vigilantly against fraud but also empowering members to recognise the warning signs for themselves.

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