UK DWP proposes automatic safeguards to curb pension fraud

The Department for Work and Pensions (DWP) is consulting on new rules that would automatically block pension transfers when warning signs of fraud are detected. The measures target scams involving Small Self‑Administered Schemes (SSAS), where average losses have risen to £38,400 per victim, and aim to protect millions of savers.

Pensions Minister Torsten Bell said the government will trigger a red‑flag warning where there is no clear link between a saver and the scheme, allowing trustees to halt transfers before funds disappear. The consultation also seeks to streamline legitimate transfers by reducing bureaucratic red tape. The Pensions Regulator and the Pension Scams Action Group are working with the DWP on the proposals, which could be backed by legislation later this year.