Criminal activity in connection with loosening of pension restrictions was worse than expected
The level of fraud following the freeing-up of pension reforms was a lot higher than previously thought according to data from City of London Police.
George Osborne's flagship policy to give pensioners greater freedoms – including allowing them to take a lump sum out of their pension – provided criminals a new opportunity to con people out of their money.
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In the six months that followed, £10.6m of losses were originally reported to the City of London Police.
However, as reports made to the police were subsequently amended by authorities, the latest data indicates that losses over the period were actually 25 per cent higher, at £13.3m.
(Source: City of London Police)
The total amount lost by pensioners only relates those that have been reported to the police and experts predict that the actual amount of money lost is much higher.
“Judging by this data, the post-freedoms pension fraud spike was worse than we had previously feared, and yet the government continues to sit on its hands when it comes to taking meaningful action to deter scammers," said AJ Bell senior analyst Tom Selby.
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The £13.3m reported compares to £5.4m during the same period the year before, and Selby said urged the government to crack down on such behaviour.
“Prime Minister Theresa May has indicated an appetite for intervention in various markets – she should start by strengthening the Government’s response to the threat of pension scams.”