Agencies battling pension scams are more united than ever as they use artificial intelligence to uncover fraudulent websites.
A coalition of fraud fighters have used machine learning technology, algorithms trained with real-world data to build predictive models, to create a new tool to detect scam websites. Each of these fraudulent sites would have had the potential to reach thousands of savers.
Developed by The Pensions Regulator (TPR) and the Pension Scams Action Group (PSAG) – it is among the latest tactics being deployed to protect savers from online harm. As part of this work to date, PSAG has reviewed 830 websites, taken down 29 high-risk sites and made 94 referrals to partner agencies.
Paul Sweeney, PSAG Business Lead at TPR, said: “The threat of pension scams is ever evolving. To stay one step ahead, we are using every tool at our disposal to beat the fraudsters.
“Scammers often exploit technology to deceive victims and steal their pensions. We are turning the tables on them by using technology to detect and prevent fraud by removing malicious websites.
“Alongside this, we and our PSAG partners are collaborating more closely than ever, enhancing the intelligence we hold and disrupting emerging threats from scammers.”
At a recent webinar, PSAG members joined industry experts and more than 550 participants from across the pensions industry to discuss how they can work together to strengthen defences.
Chris Bell, Service Delivery Director at City of London Police (CoLP), spoke about a new reporting service replacing Action Fraud later this year.
He said: “We continue to make progress developing the new Fraud and Cyber Crime Reporting and Analytics Service that will replace Action Fraud.
“This system will result in fundamental service improvements to how intelligence is gathered nationally from multiple sources and speed up the analysis of reports, and how quickly they are sent to police forces for investigation.”
James Bentley, Threat Leadership from the National Economic Crime Centre (NECC), added: “This latest action from the Pension Scams Action Group shows how, by working together, we can stop hard-working pension savers from being scammed in the first place. Scammers, be warned. We will use every tool we can to track you down, disrupt your activity, and prosecute you.”
With TPR surveys showing only 11% of defined benefit (DB) and defined contribution (DC) schemes correctly said scams should be reported to Action Fraud, despite clear guidance, Mr Sweeney added: “Ahead of the new reporting service launching later this year, it is essential trustees still report to Action Fraud so we can build our national intelligence picture.”
PSAG is a TPR-led multi-agency taskforce bringing together law enforcement, government and industry representatives to co-ordinate and target action to combat pension scams and fraud through education, prevention and enforcement.
