The introduction of pensions dashboards will present a "great opportunity" for fraudsters, Target Professional Services director, Lisa Lyon, has warned.

During a panel discussion on data security at the Pensions Administration Standards Association (PASA) Conference 2025, Lyon warned that pensions dashboards could increase identification fraud.

"All of you should have your eyes on the road ahead because fraudsters are a thousand steps ahead of any of us," she continued.

"Fraudsters gather information over a long period of time on vulnerable and wealthy individuals, who will be accessing pensions dashboards."

Echoing her concerns, Crowe partner for forensic services, Tim Robinson, claimed phishing was developing and evolving rapidly, using artificial intelligence (AI) and deepfakes to make cyber crime quicker and more efficient.

A recent survey by the Society of Pension Professionals (SPP) revealed that the majority (87 per cent) of pension firms were using AI, indicating its widespread adoption within the UK pensions industry.

However, just 6 per cent said data protection/cyber security was ‘the biggest risk’ of using the technology.

Addressing the audience at the conference, both experts urged the industry to educate itself on new data security challenges.

"Identify emerging risks and respond with realistic processes to prevent them, rather than a tick-boxing exercise," Robinson added.

Chair of the session and PwC head of pensions data, Kristy Cotton, also agreed on the need for action: "Regular training and updates with data security embedded in day-to-day workings are needed, alongside work to identify pockets of extra risks in your scheme."

The panellists also acknowledged the importance of an impending cyber-security resilience bill.

The UK government announced last year that it intended to introduce a Cyber Security and Resilience Bill to Parliament in 2025.

The bill, which was formally proposed as part of the King's Speech in July, is intended to strengthen the UK's cross-sectoral cyber security legislation and better protect the country's economy and infrastructure.

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