By Dale Critchley, Workplace Policy Manager, Aviva
Scammers who are based overseas would have previously had to recruit English speakers, but the use of AI allows for more efficient translation, broadening the pool of potential workers. Data harvested from malware and sold on the dark web can be analysed by AI to identify potential targets, and any weaknesses that the scammers can exploit. AI face-changing software can be used to reassure potential victims in online calls, and it’s estimated that an AI clone of someone’s voice can be based on as little as a 15 second sample from the real person.
While in the past we have seen bogus investments in overseas property, the growing market for investments in crypto currency is a current target for investment scammers. Sophisticated scams might result in a transfer to a cloned trading platform, and into a scammer’s digital wallet. Thereafter, through scattering and layering, the money is moved out of reach, into the legitimate economy or other criminal activity.
While these scams may not necessarily be looking to access pension funds directly, trustees, employers, and individuals need to be alive to the fact that pension saving makes up the greatest source of wealth (35%) in the UK, after the equity people hold in their homes (40%). Importantly for scammers, pension wealth is far more easily investable than the money tied up in bricks and mortar and is accessible by anyone aged over 55.
The Pensions Regulator (TPR) provided an update on the work they have been doing to reduce scams through the Pensions Scams Action Group. They have embedded intelligence experts within the City of London Police and the National Economic Crime Centre to share expertise and disrupt the criminals carrying out scams.
2023 saw a £17.7million lost to pension fraud in the UK (Action Fraud 2023), although the true figure may be much higher due to under-reporting. The scale of investment scams worldwide is truly enormous, with the Federal Bureau of Investigations reporting losses from scams in the United States of $12.5bn.
One simple message to savers from TPR is to report any scams or suspicions to Action Fraud. Action Fraud is improving the reporting process, but it’s only through reporting scams that TPR and the relevant authorities can build their intelligence.
The other action that trustees and employers can take is to raise awareness around investment scams more generally. While pensions schemes and trustees have processes in place to identify high risk and suspicious transfers, once payments are made to savers, scam protection passes to their bank or online trading platform.
Aviva provides information to savers on how to spot pension and investments scams within the booklet we send to everyone accessing their pension saving. This sits alongside our online fraud knowledge centre that includes up to date information about a wide range of scams, including romance scams, AI and deepfake scams, covering investments as well as insurance.
No one is immune to the danger presented by pension and investment scams. I’m sure no-one who is a victim thought it would happen to them. By maintaining a focus on the issue, and sharing information about what to look out for, we can ensure that everyone is aware that they could be a potential target.
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