Pension information sold to fraudsters
30/03/2015
Financial firms are selling data about people’s pension information to fraudsters and cold calling firms, according to report by the Daily Mail.
Data which carries information in regards to peoples salaries, investment values and pension size is reportedly being sold for as little as 5p without peoples prior knowledge. Concerns have been expressed that this information could be used to scam pensioners out of their savings when they are able to access them in full in April.
The pension changes mean that people aged 55 years old or older can withdraw money from any Defined Contribution pension scheme, subject to tax. About 300,000 people are likely to take advantage of these changes, and industry experts have been constantly warning people about the dangers of scams.
The Information Commissioner Christopher Graham, who deals with freedom of information and protection of personal data, has now begun an investigation into the matter, in partnership with the Pensions Regulator, Financial Conduct Authority and the police. He has called these claims “very serious”.
The Information Commissioners Office has the power to issue fines of up to £500,000 for the most serious breaches and can suggest criminal prosecutions around unlawfully obtaining or accessing personal data.
The Association of British Insurers (ABI) has warned savers to be on guard when the pension reforms come into place, especially against unsolicited approaches from financial companies.
Need financial Advice?
If you have any personal finance questions related to this news article, please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
What impact do fees have upon your pension?
A report this week has cast a very dark shadow on the UK pension industry with accusations that UK pension arrangements are being hammered by fees which can in some cases add up to hundreds of thousands of pounds before retirement is taken. Some experts in the pension industry believe that for example someone saving £200 a month for their pension could suffer fees in excess of £200,000 over a 40...
Read MoreONS Pensions Error Under Estimates Power Of Private Pensions
For many in the financial world the Office for National Statistics (ONS) has long been one of the only departments of government with the full trust of the markets, but this trust has been dented with news of a major blunder. In their latest update on the Pensions market they reported that the average couple receive £2,115 a year from their private pensions, when in fact the figure is nearer £1...
Read MorePension fiasco hits the public sector
At a time when money has never been tighter in the UK it is believed that in excess of £100 million has been overpaid to a number of public sector workers over the last few years. It would appear that some 100,000 pension recipients have received in excess of their official pension payments for a number of years leaving a black hole of around £100 million. Some what do the government plan to do...
Read MoreNew pension freedoms could increase risk of fraud
30/12/2014 The new pension freedoms and flexibilities announced in the 2014 Budget may mean that pensioners are more exposed to losing their life savings to scammers. Pension scammers are evolving their tactics to try and get as much money as possible out of those aged 55 and over, which may be easier for them after the new regulations come into place. Standard Life, a long term savings...
Read MorePhone fraud – Over 55s more likely to become victims
A recent study conducted by the Financial Ombudsman has revealed that people aged 55 years and over are more likely to become victims of phone fraud. This is when fraudsters pose as a bank or the police and request bank details to be given over the phone. The study, which reviewed 200 phone scam cases involving ‘vishing’ or a ‘no-hang up’ scam, has found that 80% of those who were tric...
Read More