Fraud losses from coronavirus scams hit £5m mark

More than 11,000 coronavirus-themed scams have been brought to ActionFraud since the start of the lockdown, the Press Association reported, with the most common identified as including a pension-related scam.

This is commonly in the form of fraudsters convincing victims to transfer their pension pots or release funds.

The sharp increase in scam activity comes despite continued warnings throught April and May from The Pensions Regulator (TPR) about heightened fraud risk.

TPR chief executive Charles Counsell said: "These figures once again show the true devastation of scams; anyone can be a victim and Covid-19 has created the sort of environment fraudsters thrive in."

Counsell warned savers should hold off on making rash decisions about their retirement funds and utilise free advice from the Money and Pensions Service or its ScamSmart website.

The People's Pension director of policy Gregg McClymont added: "Savers should decline any unsolicited approach to access their pension pots early - pensions fraud takes many forms so it's important that the public is alive to the very real risk that ruthless criminals will try anything."

A number of industry initiatives were set up which coincided with the spread of coronavirus into the UK, including the Pensions Administration Standards Association's cybercrime and fraud working group alongside audit, tax, advisory, and risk firm Crowe UK on 24 March.

The new All-Parliamentary Group on Pension Scams also had its inaugural meeting on 16 March for boosting public awareness around scam risks, labelling them "a huge, complex and growing problem" for savers in the UK.

Research from AJ Bell found one in eight pension fund holders under the age of 55 would consider an early access pension offer, with younger savers and men particularly vulnerable.

Senior analyst Tom Selby said: "Pensions remain an obvious target for fraudsters and given the profound economic and social uncertainty created by Covid-19, it was inevitable unscrupulous scammers would attempt to take advantage of the situation.

"The apparent hubris about the dangers of scams leaves the door open to fraudsters to take advantage."

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