Source · Select Committees · Work and Pensions Committee
Recommendation 31
31
The establishment in 2012 of Project Bloom, the multi-agency task force set up to tackle...
Recommendation
The establishment in 2012 of Project Bloom, the multi-agency task force set up to tackle pension fraud was an attempt to overcome this. We support the creation of Project Bloom, but it has become clear that it does not have the capacity in its current form to achieve its objectives. It must now be given a statutory remit, an appropriate name—we propose “the Pension Scams Centre”—dedicated funding, and the staffing to manage a pension scams intelligence database alongside law enforcement. To avoid the risks of creating yet another regulatory body in an already crowded field, 62 Protecting pension savers—five years on from the pension freedomss Pension scams we recommend that the new Pension Scams Centre should have a board made up of representatives of Project Bloom’s current member organisations, with oversight of a pension scams hub. The hub’s responsibilities would include facilitating intelligence- sharing within the pensions industry and between regulatory bodies. The funding for both bodies should be ringfenced from existing budgets. The new organisation should consult on a public strategy with clear targets for reducing the incidence of pension scams and publish data demonstrating its success—or otherwise—in achieving these targets. (Paragraph 120) Supporting with pension scam victims
Government Response
Acknowledged
HM Government
Acknowledged
We agree there is certainly scope for further action in this area and ensuring a more joined up approach. The Money and Pensions Service (MaPS) helpline or webchat is often the first point of contact for customers who have concerns about being scammed either in the past or have current concerns. They provide information about the steps people can take if they think they have been a victim of a scam, and signpost them to Action Fraud so they can report the scam. MaPS already provide a ‘Pension Loss’ service. These one-to-one appointments are delivered by technical specialists where they try to understand the background to the loss, the key dates and the firms involved. In these appointments customers are sensitively explained possibly routes of redress via the various jurisdictions – the Financial Ombudsman Service, the Financial Services Compensation Scheme, the Pensions Ombudsman - transferring schemes and how to go about claiming where appropriate. To ensure scam visits are supported, MaPS are developing the ‘Pension Loss tool’ to equip their specialists with the information they need, and this tool is also due to be built into the MoneyHelper website for people to access online. The tool will also connect up the regulatory partners to improve the customer journey and provide better support for scam victims. Following a loss of money, customers can be referred for a Pensions Rebuilding Appointment where they are provided guidance to explain the pensions options available to help them rebuild their retirement savings for the future. MaPS also regularly share information with the regulatory authorities where they believe there to be customer detriment. The Action Fraud Economic Crime Victim Care Unit (ECVCU) is designed to deliver services to victims of fraud and cybercrime to help them recover from their crime and prevent them from being victims in the future. It targets individuals who report a fraud or cybercrime to Action Fraud, but who do not receive any focused service as their cases are not disseminated for investigation. The ECVCU is currently supporting 20 forces in the North West, West Midlands, South West, East Midlands, Central London and Eastern Region (Kent), which accounts for 52% of all fraud reported to Action Fraud. This service is being rolled out further and will cover the majority of the population of England and Wales by the end of 2021. 22 Responses to the Committee’s Fifth Report of Session 2019–21