Pension scheme trustees and administrators are the first line of defence against pension scammers, The Pensions Regulator (TPR) has said, urging the industry to adopt higher standards of anti-scam practice to prevent fraudsters reaching savers.

In line with Scams Awareness Week, the regulator shared a new video showing the “devastating” impact of pension fraud though the story of Pauline Padden, who was one of 245 victims scammed out of a total of more than £13.5m in pension savings after they were persuaded to transfer into fraudulent schemes.

The video reminded trustees and administrators they are the first line of defence against pension scammers, urging the industry to take action to protect their members, and ask "are you doing all you can to protect people like Pauline?”

The regulator also encouraged trustees and administrators to share the new video aimed at savers with their members, to help them know how to spot and avoid scammers’ duplicitous tricks.

The video series was published alongside a case report on the investigation that led to the conviction of Alan Barratt and Susan Dalton in April 2022 for their part in defrauding Padden and others of their pensions.

The report outlined how a single whistleblower report to TPR led to the pair being sentenced to a total of 10 years in prison, as well as being banned from acting as company directors for eight years.

TPR also confirmed that, following the completion of confiscation proceedings against Dalton and Barratt in January 2024, the government’s Fraud Compensation Fund approved compensation for the pension schemes involved in this case.

Members of these schemes will be informed of what this means for them individually in "due course".

TPR executive director of regulatory compliance, Gaucho Rasmussen, said: “Pauline’s story starkly demonstrates how ruthlessly fraudsters will exploit victims’ vulnerability to make their ill-gotten gains.

“As our new report demonstrates, we take determined action to protect savers’ hard-earned pensions and bring fraudsters to justice.

“We urge industry to adopt higher standards of anti-scam practice to prevent fraudsters reaching savers like Pauline. Take the Pledge to Combat Pension Scams, deliver on it and report any suspicions to Action Fraud.

“Trustees should also consider making a report to us via the whistleblowing form on our website if any concerns arise, such as potential criminal offence.

“Every report counts, providing TPR and our Pension Scams Action Group partners across law enforcement, government and the industry with the vital intelligence we need in the fight against fraud and criminality.”

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