Scam warning signs in 60% of cases since July 2020
There continues to be industry focus on protecting pension members from scams, highlighted by both the call for evidence from the Work and Pensions Select Committee, but also in the introduction of the ability for trustees to remove the statutory right to a transfer in the Pension Schemes Act 2021.
Post lockdown, we are seeing scam flags in around 60% of all transfers covered by our Scam Protection Service – a significant increase from a third over the last two years. These flags have largely been a result of members receiving advice from unauthorised advisors and a lack of understanding of the fees they will be charged in their new arrangement.
Over six years the XPS Scam Protection Service has helped protect 5,300 members’ transfers totalling over £1.3 billion. We see a direct one to one conversation and engagement as key to protecting members leaving pension schemes, and talking directly to your members is recommend by both The Pension Regulator's pledge to combat pension scams, and also the Pension Scams Industry Group (PSIG) code of good practice. XPS Scam Protection Service is available now to help you protect your members.
Regulator pledge – industry asked to step up processes to combat pension scams
With the growing risk from pension scams, the Pensions Regulator is asking trustees, administrators and providers to pledge to protect members from pension scams. A key part of this recognises the importance of engaging directly with members in line with the XPS Scam Protection Service. We can help you review and improve the processes you have in place to identify scams and engage with members in order to be able to meet the pledge. We believe the pledge will become a reference point in future if members do unfortunately fall victim to a scam.
XPS Pensions Group are proud to have signed up to the pledge.