Source · Select Committees · Work and Pensions Committee
Recommendation 17
17
Paragraph: 73
The move online by pension scammers has been a recurring theme of our inquiry.
Recommendation
The move online by pension scammers has been a recurring theme of our inquiry. Regulators appear powerless to hold online firms to account for hosting scam advertisements in the same way they would be able to for traditional media. Scammers using paid-for online advertisements appear to be particularly hard to tackle without the co-operation of the hosting firm. It is immoral that tech firms such as Google are accepting payment to advertise scams, and then further payment from regulators to warn about the scam. It should not require legislative solutions to deter global firms from benefitting from the proceeds of crime, but unfortunately legislation is clearly needed. We recommend that, in order to create parity between traditional media, such as TV and newspapers, and new media, including search engines and social networks, paid-for advertising on online platforms should be covered by the regulatory framework for financial promotions. This would require online publishers to ensure that any financial promotion which they communicate has been approved by an authorised person or is exempted from the financial promotions regime.
Paragraph Reference:
73
Government Response
Acknowledged
HM Government
Acknowledged
We believe that education will always be one of the most effective weapons against scammers. It would be far tougher for scammers to succeed if individuals can spot a scam and do not hand over their hard-earned retirement savings in the first place. For the past three years, The Pensions Regulator (TPR) and the Financial Conduct Authority (FCA) have jointly run the high-profile multi-million ScamSmart advertising campaign across television, radio, online and digital media. It has reached four out of five pension savers between 45–64, the group most at risk, with 77% reporting they recognise the TV campaign. Over the three years of running the consumer-facing ScamSmart campaign, TPR has evolved its proposition and shifted its focus to its ‘Pledge to Combat Pension Scams’ campaign as this centres on their regulated audience (trustees, providers etc), focusing its resources to impact the behaviours of this group in areas such as member communication, reporting suspected scams, and carrying out due diligence on transfer requests. TPR and the FCA will continue to have a close working relationship and, together with other Bloom partners, support the promotion of both the consumer-facing and industry- facing campaigns. TPR is actively working with the industry to support them to make the pledge and continues to meet regularly with those wanting to improve their anti-scams processes. The pledge includes the ambition that industry evolves their practices, including on member warnings, as scammers methods alter. TPR is also emphasising the need for increased industry reporting to Action Fraud via the Pledge campaign, the Pension Scams Industry Group code and City of London Police industry communications.