Industry alert update: impersonation fraud

Published: March 2026

Summary

Pension scheme trustees and administrators are urged to be vigilant following a rise in impersonation fraud involving unauthorised access to members’ accounts.

Analysis by a TPR intelligence analyst seconded to Report Fraud has identified a heightened risk to members of UK pension schemes who now reside in Africa.

This alert follows up on our initial impersonation fraud alert issued in September 2025. It indicated account hacking and impersonation techniques were being used to gain unauthorised access to pension scheme members’ accounts.

Recommended actions to help protect members

• Report any suspected fraud to Report Fraud immediately.
• Review your identity and verification checks.
• Review data security for letters and documents that are posted to overseas addresses.
• Encourage members to strengthen online security by adopting two-step verification and using stronger passwords.
• Signpost members to resources such as Stop! Think Fraud.

Every report counts

90% of the reports contributing to this alert were submitted by pension professionals.

The threat highlighted in this alert would not have been identified as quickly without the collective intelligence provided from industry reporting. Trustees and administrators are encouraged to remain vigilant and report all suspicions.

Findings

Report Fraud analysis has identified a year-on-year increase in reports of this type of fraud specifically affecting UK pension scheme members who now reside in Africa, from 2016 to 2025, with the sharpest rise occurring in 2025.

This trend resulted in significant losses of pension savings, with around £500,000 lost and a further c.£2,500,000 at risk, between 2021 and 2025.

Impersonation fraud methods

Identity theft and account takeover

Fraudsters gain access to members’ personal information by hacking their email accounts, or as observed in a very small number of cases, intercepting members’ post. This allows them to use correspondence between the member and the scheme.

They may also contact members to gather enough personal details to satisfy identity checks and convince the scheme that they are the member – allowing them to change the bank account on record and withdraw funds.

Fraudulent duplicate accounts

Members’ account information is accessed by fraudsters, to set up fake pension accounts in the member’s name. Funds are then moved from the real account to the fake account without challenge.

Weak credential exploitation

Accounts can be accessed through poorly secured account credentials. Passwords may not be strong enough or written down, or two-step verification might not have been enabled. In these cases, the member and individual committing the act were known to each other.

Fraudulent death claims

With access to the member’s account obtained, fraudsters divert pension funds belonging to deceased members to an alternative bank account without the next of kin’s knowledge, or before they become aware.

Recommendations

Tell Report Fraud about cyber crime and fraud

Frontline professionals play a critical role in the fight against pension fraud – and reporting is our best defence. Each report enables relevant authorities to analyse trends, disrupt criminal networks and implement effective prevention measures.

Every report counts and may provide authorities with a significant piece of the intelligence puzzle. You can submit an information report even if you’re not sure anything is wrong. If you suspect criminal intent or foul play then report it with confidence.

You can report pension fraud and suspicions:

1. Online, using the online reporting tool to submit an information report, or a crime report – reports that are made online get treated with the same urgency as reports made over the phone
2. By phone, call 0300 123 2040, Monday to Friday between 8am to 8pm

When you submit a report, you can choose to register your details. This lets you update your reports, make future reporting quicker, and track their progress.

Review scheme systems and controls

• Review measures you have in place to adequately prevent identity fraud such as member identity and verification checks.
• For additional information, read The Pension and Administration Standards Association guidance, PASA Protecting Identities During High Risk Events (PDF, 609KB, 21 pages).
• Make sure staff are appropriately trained to identify fraudulent documentation, especially for death and ill health claims.
• Review and strengthen security for overseas post, think about how to make overseas post more secure – for example, you could use recorded delivery and avoid sending personal or sensitive information in envelopes that show your organisation’s name.
• While the insight for this alert identifies an increased risk of impersonation fraud for members who now reside in Africa, please be mindful that similar risks could apply across other jurisdictions.

Educate members

• Communicate the importance of online security and keeping pension account details up to date and encourage your members to strengthen their online security by asking them to turn on two-step verification.
• Raise awareness of heightened risk of pension fraud for former UK pension scheme members who now reside in Africa.
• Signpost members to City of London Police Identity fraud guidance.
• Direct members to the Stop! Think Fraud website and the Pension Scheme Action Group Steps to stay scam safe leaflet (PDF 235KB, 2 pages).

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