Pensions - Articles - Scam checks remain critical following DWP consultation

 The proposed conditions will give trustees greater ability to prevent transfers in certain circumstances. These conditions are intended to enable trustees to restrict transfers where there is a risk of a pension scam.

 However, to minimise the chance of a scam, trustees must continue to carry out robust scam protection measures, such as those recommended by the Pension Scams Industry Group Code on combating pension scams. Measures include analysing incoming requests and speaking with members to ensure they understand any risks.[1]

 Mark Barlow, Partner at XPS Pensions Group, commented: “The ability for trustees to block transfers in certain circumstances is a welcome step forward in the fight against pension scams. However, we are concerned that these conditions could suggest that certain transfers are “scam free” when we know this not to be the case. Evidence from our Scam Protection Service demonstrates how robust scam protection measures will continue to be vital in protecting member outcomes”.

 XPS has provided scam protection services for members leaving pension schemes since 2015, allowing it to track, analyse and respond to developments in scam activity. The service identifies whether any of over 40 possible red flags are present for members leaving their schemes. To date the scam protection team has been involved in 5,200 transfers representing over £1.3 billion of pension pots. The team also provide support to trustees and administrators to investigate any red flags identified.