Nearly 500 pension transfers trigger anti-scam interviews

Under the new rules, pension schemes are required to check transfers to see if they trigger red or amber flags, indicating the potential for scams.

Should an amber flag be triggered, the member looking to transfers has to provide evidence that have completed one of the anti-scam safeguarding interviews before the transfer can proceed.

So far 792 members have been asked to complete interviews, according to a Freedom of Information request submitted to the Money and Pension Service who administer the interviews by pension consultancy LCP.

There are currently another 178 interviews in the pipeline.

Just over 100 interviews were not completed as they were cancelled, the member did not show up, or they could not be completed for some other reason.

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Daniel Jacobson, LCP’s lead on pension scams, said: “It is early days for the new regime but it is clear that hundreds of people have already been required to take part in an anti-scam interview before their pension transfer could go ahead. 

“At this stage we do not know whether there was an actual risk of a scam in many – or indeed any – of these cases, or whether providers are simply routinely referring a large proportion of potential transfers for guidance, rather than carrying out the expected due diligence under the new transfer regulations.  We also do not yet have data on whether the member simply ‘ticked the box’ by taking part in an interview but then carried on with the planned transfer regardless. 

“It is very important that DWP and the Money and Pensions Service undertake research into what sorts of cases are being referred, what happens during these conversations and how consumer behaviour is being altered as a result.  Only then can we say for sure whether these new measures are genuinely protecting consumers.”

The Money and Pensions Service were unable to breakdown whether the proposed transfer were DB to DC or DC to DC.

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