Source · Select Committees · Work and Pensions Committee
Recommendation 37
37
Being a victim of any fraud can be devastating.
Recommendation
Being a victim of any fraud can be devastating. Pension scams often involve the loss of a lifetime’s savings and many of the plans people have made for their later life. Victims of pension scams suffer lifelong financial harm and potential lifelong impact on their mental wellbeing. We recommend that DWP should lead in the creation of a strategy to ensure that all pension scam victims are offered, and encouraged to take, support for both the financial harm and psychological distress caused by pension scams. Support for financial harms could be delivered through the Money and Pensions Service’s new consumer facing brand MoneyHelper when it launches in June 2021. Support for psychological distress could be delivered jointly with other Government departments to signpost relevant services. (Paragraph 148) 64 Protecting pension savers—five years on from the pension freedomss Pension scams
Government Response
Not Addressed
HM Government
Not Addressed
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.