Source · Select Committees · Work and Pensions Committee
Recommendation 7
7
Paragraph: 34
Many victims of pension scams never report that they have been scammed.
Recommendation
Many victims of pension scams never report that they have been scammed. Others report a long time after it has taken place. Scam victims reasonably expect that, when they make a report to Action Fraud, it will be acted upon. They are understandably left disillusioned when this does not happen. A 2019 investigation by the Times found serious failings at Action Fraud, the UK’s national reporting centre for fraud and cybercrime. Representatives of Action Fraud were able to speak positively about improvements made to the service since 2019, but there is a long way to go before it can regain the faith of victims and the wider public. We recommend that Action Fraud should be accountable to Project Bloom, or any successor organisation, for its work on pension scams. A failure to manage victims’ expectations, an investigation by the Times and a lack of action on cases has left Action Fraud with a tattered reputation. The City of London Police should make annual reports to Parliament on efforts to repair it.
Paragraph Reference:
34
Government Response
Acknowledged
HM Government
Acknowledged
The Government continues to stress the importance of reporting instances of fraud to Action Fraud, both to support police investigations as well as allowing the development of a stronger intelligence picture across a range of threats. Action Fraud also makes their role as the national reporting service clear and receives a large number of reports each year related to pension scams, both from individuals and from industry. In 2020, there were 637 reports of pension scams, of which 545 were passed out to UK law enforcement.1 The Government will continue, alongside Action Fraud, to communicate the importance of reporting all instances of fraud to the service to the public and industry. To ease this process, there is already a dedicated contact number as well as online reporting tool and associated guidance covering how to report instances of fraud, including pension scams. Furthermore, Action Fraud works hard to proactively protect the public from pension fraud, including through communicating key warning signs to be aware of, and important steps for consumers to take to protect themselves. Recent pensions-related advice includes crosschecking the Financial Conduct Authority’s (FCA) Register to ensure the advice or other financial services provided are FCA authorised, as well as reporting pensions cold calling to the Information Commissioner’s Office (ICO). Work is in progress to make it clear that industry as well as individuals should report to Action Fraud. City of London Police has appointed an industry liaison officer, and is working with The Pensions Regulator, the PSIG, and the National Economic Crime Centre on industry communications, including a webinar for pension scheme providers to clarify reporting process they should be following.