Source · Select Committees · Work and Pensions Committee
Recommendation 6
6
Not Addressed
Paragraph: 26
At present there is no universal definition of pension scams and the range of potential...
Recommendation
At present there is no universal definition of pension scams and the range of potential activity which could be classed as a scam runs from sharp practice all the way to outright fraud. Project Bloom, the multi-agency taskforce set up to tackle pension scams, uses a broad definition of pension scams which has been developed by the Pension Scams Industry Group. We recommend that Project Bloom should continue to use the Pension Scams Industry Group definition of pension scams, which should be Protecting pension savers—five years on from the pension freedomss Pension scams 57 treated as the industry standard. Members of Project Bloom may need to use different definitions within their own settings—for example, to avoid double counting a case of investment fraud under several different categories—but they should record data in a way that is compatible with the definition used by Project Bloom.
Government response summary AI-generated
The government response discusses increasing awareness of secondary scammers through various campaigns and services, but does not address the recommendation for Project Bloom to continue using the Pension Scams Industry Group's definition of pension scams.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
26
Government Response
Not Addressed
HM Government · verbatim extract
Not Addressed
The existing Pension Scams Industry Group definition was developed by Project Bloom in 2016 following consultation with all partners. Pension scams can be particularly harmful due to the impact on people’s retirement provision for later life. The definition focuses on accessing funds from a pension pot, which we believe remains fit for purpose. There are broader threats impacting consumers, such as the emergence of cloned websites, and ‘sharp practice’ (e.g. misleading people about a contract, fees or investments) within some segments of the pensions and investment advice industry. We keep such threats under review via the Project Bloom threat assessment. In addition, a number of agencies within Project Bloom have a broader focus than just pension scams, and the existing definition feeds into their broader view of, and response to, fraud generally. Project Bloom partners are currently exploring options to improve the reporting process and data collected. 8 Responses to the Committee’s Fifth Report of Session 2019–21
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