Key Takeaways:
- Pension tracing scams target people searching for lost pensions in order to steal people’s money or personal data
- Legitimate pension tracing services and tools in the UK are free
- Unsolicited contact about pensions is a major warning sign and something to watch out for
- There are safe, regulated ways to trace and consolidate pensions
If you’re trying to track down pensions from previous jobs, you’re not alone. In fact, according to a report published by Pensions UK, Brits are missing £31.1bn in unclaimed pension pots. [1]
There’s nothing worse than that distracting “where-did-I-put-that" feeling. And when it comes to something as important as pensions, it can start to feel less like something you’ve misplaced and more like a nag.
Unfortunately, where there’s money involved, there’s also scammers.
Thousands of people are swindled out of their retirement savings every year, and in 2024, UK savers lost over £17.5 million to pension fraud. [1]
To do this, fraudsters use empty promises to lure people in. Often, this comes in the form of an unexpected phone call, text or email that claims they’ll be able to help individuals “find” their pensions.
Fortunately, there are legitimate and safe ways to trace your lost pensions. You just need to make sure you use the right avenues.
In this blog, we’ll explain more about pension tracing scams, how they work, the red flags to watch out for, and how to find your pension without putting your money or personal data at risk.
- What is a pension tracing scam?
- How do pension tracing scams work?
- Types of pension scams targeting people tracing pensions
- How to avoid pension scams when tracing lost pensions
- Combating pension scams: how to protect yourself
- Pension scam alerts: staying informed
- Pension scam recovery: what to do if you’ve been targeted
- How to trace your pension safely with Wealthify
What is a pension tracing scam?
It is a type of fraud where scammers pose as a legitimate pension tracing service in order to exploit people searching for lost pensions.
These scammers take advantage of the fact that many people have moved house or changed jobs multiple times and may not remember who manages their old pensions. They often promise to locate missing pots quickly, usually in exchange for a fee, commission, or a percentage of your pension value.
In reality, these scams can result in:
- Money being taken for information that is available for free
- Personal and financial data being stolen
- Pensions being redirected into fraudulent investment schemes
People searching for old pensions are particularly vulnerable because the request seems reasonable and time-sensitive — especially when the contact appears to be professional or urgent.
How do pension tracing scams work?
Pension tracing scams often follow a predictable pattern. Scammers make initial contact, gather information, and then exploit trust to extract money or access pension funds. Common tactics include:
- Fake pension tracing companies charging unnecessary fees
- Cold calls or texts offering to “help find lost pensions”
- Emails claiming a pension has already been found
- Copycat websites designed to look like legitimate government services
A typical scam journey could look like this (though of course, every scam is unique, and may follow a different pattern):
- Unsolicited contact claiming to help trace a pension
- Requests for personal or pension information
- Fees charged, or getting pressure to transfer a pension
- Money or data is stolen, or pensions are moved into fraudulent schemes
We’ll go into more detail on the red flags that can help you spot these scams later on.
Types of pension scams targeting people tracing pensions
There are several common types of pension scams that specifically target people trying to trace old pensions. Below, we’ll explain some of the most frequent ones.
Pension tracing fee scams
This type of scam involves charging you upfront fees in order to “find” your pension. Scammers may:
- Charge large amounts for tracing services
- Provide information that is freely available elsewhere
- Take payment and deliver no service at all
Something that is important to remember is that legitimate pension tracing in the UK does not require payment.
Pension transfer scams
Pension transfer scams often begin with a legitimate-looking tracing offer.
Once a pension is located, scammers may suggest transferring it to another scheme – claiming that doing so could help you secure better returns, or other similar incentives.
Scammers will often use high-pressure tactics and promises of guaranteed growth to try and push people into acting fast without thinking.
These transfers can move your pension into unregulated or fraudulent investments, putting your entire retirement at risk.
Data harvesting scams
Data harvesting scams involve fake forms or websites designed to collect personal and financial information. Often, these websites are designed to replicate legitimate ones which is why such caution is needed.
This data may be used by scammers in a number of ways. It could be:
- Sold to other scammers
- Used for identity theft
- Used to target you with further pension fraud
Pension information is particularly valuable to criminals, making these scams something to be especially wary of.
Workplace pension scams
Have you bobbed between roles and companies in your career? Workplace pension scams often target people who have changed jobs frequently (and who may have lost track of their pots as a result).
Scammers may impersonate:
- Former employers
- Legitimate pension providers
- Pension administrators
They do this to exploit the confusion that can arise from having scattered pensions pots after years of moving from job to job. Their aim is to gain your trust so that they can ultimately access your sensitive information and private data.
How to avoid pension scams when tracing lost pensions
Now, onto the important part: how you can avoid being scammed.
While there’s no 100% certain method for guaranteeing you’ll never be conned, there are steps you can take to try and avoid it.
While scams might take many forms and styles, being aware of red flags can help you stay vigilant.
Red flags to watch for
Be alert if you encounter any of the following:
- Unsolicited contact about finding your pension
- Requests for upfront fees
- Pressure to act quickly
- Promises of guaranteed returns
- Requests for personal details before explaining the service
- Claims of secret or exclusive pension tracing methods
- Pension finder companies that are not FCA regulated or FSCS covered
If something feels off, always take the time to check. Doing so could just give you the breathing room to identify a scam and protect your pension and personal data.
Safe steps to trace your lost pension
The good news is that it’s very possible to trace your pension safely — and it doesn’t cost a penny.
To trace your pension safely, make sure you keep in mind the following:
- Research any pension tracing company thoroughly
- Contact former employers directly if possible
- Check old paperwork for provider details
- Never pay for pension tracing services!
- Verify anyone offering help independently
- Take your time — legitimate pensions are not time-limited
Combating pension scams: how to protect yourself
So, what steps can you take to protect yourself?
The short answer: stay alert. Pension scams thrive on pressure, confusion, and misplaced trust. A few smart habits can dramatically reduce your risk.
Key steps include:
- Never engage with cold callers about your pension. Legitimate firms won’t contact you out of the blue.
- Avoid clicking links or downloading attachments in unsolicited pension emails. If it looks urgent, be extra cautious.
- Always check the FCA Register before dealing with any pension company or adviser. If they’re not listed, walk away.
- Use strong, unique passwords for your pension accounts. Never reuse passwords from other services.
- Limit the personal details you share on social media. Scammers often use this information to appear credible.
- Carry out regular pension check-ups with trusted, regulated providers. A second opinion can spot red flags early.
Remember, when it comes to pensions, if something feels rushed, secretive, or “too good to be true” — it usually is.
Pension scam alerts: staying informed
Keeping up to date with official warnings allows you to spot new approaches early, as reliable, up-to-date information gives you the confidence to pause, question, and seek advice before making any decisions about your pension.
You can check for the latest pension scam warnings and alerts through trusted sources, including:
- The FCA Warning List: highlights firms and individuals that may be operating without authorisation or running scams.
- Action Fraud alerts: provides updates on reported scams and emerging fraud trends across the UK.
- The Pensions Regulator warnings: focuses on pension-specific risks and scam activity affecting savers.
- ScamSmart: the FCA’s consumer website offering clear guidance, real-life examples, and tools to help you identify and avoid scams.
By regularly checking these sources, you stay one step ahead of scammers. A few minutes spent reviewing the latest alerts could make all the difference in safeguarding your pension and your financial future.
Pension scam recovery: what to do if you’ve been targeted
Discovering that you may have been targeted by a pension scam can be frightening, but acting quickly and calmly is crucial.
While recovery can be difficult, taking the right steps as soon as possible can improve the chances of limiting damage and, in some cases, recovering funds.
Let’s jump in.
If you haven’t sent money yet
If you suspect a scam but haven’t transferred any money or pension assets, act immediately to protect yourself:
- Stop all communication straight away — do not reply to calls, emails, or messages
- Do not provide any further information, especially personal, financial, or pension details
- Block the phone number or email address, but keep a record of it for reporting purposes
- Report the incident to Action Fraud, the UK’s national fraud reporting service.
- Check your credit report for any suspicious activity, as scammers may attempt identity fraud
- Stopping engagement early can prevent the scam from escalating and protect your pension from being accessed
If you’ve already lost money
If money has already been transferred, it’s vital to act as quickly as possible:
- Report the scam to Action Fraud immediately on 0300 123 2040.
- Contact your bank and pension provider urgently — banks may be able to retrieve or freeze funds if notified quickly.
- Report the scam to the Financial Conduct Authority (FCA) and The Pensions Regulator so they can warn others and take action.
- Keep all evidence, including emails, letters, phone numbers, bank statements, and transaction details.
- Consider reporting the incident to your local police, especially if significant sums are involved.
What to expect after reporting
It’s important to set realistic expectations. Recovery is often challenging, but it is not impossible:
- Banks may be able to recover some funds if the scam is reported promptly.
- Action Fraud will investigate the case but won’t directly recover money for victims.
- Be extremely cautious of so-called “recovery room” scams – these are secondary scams where fraudsters claim they can get your money back for a fee.
Where to get support
You don’t have to deal with the aftermath alone. Free, trusted support is available from:
- MoneyHelper: offers clear guidance and emotional and practical support for scam victims.
- Citizens Advice: can help you understand your options and next steps.
- Taking swift action, reporting the scam, and seeking support can help you regain control and reduce the risk of further harm.
How to trace your pension safely with Wealthify
Tracing a pension safely starts with gathering key information, such as your old employer details, National Insurance number, and any existing pension paperwork.
The process typically involves:
- Submitting known employer or provider details
- Waiting for confirmation and records to be located
- Reviewing what pensions you hold and where
Tracing can take time, depending on the age of the pension and the records involved.
Once pensions are found, many people consider consolidating them to make management easier. Pension consolidation can reduce paperwork and help you see your retirement savings in one place (but you should always check whether this is best for you and your specific pension before deciding).
Summary
Pension tracing scams are a growing threat, but with the right knowledge, they are avoidable.
Free, legitimate services exist, and no genuine provider will pressure you or charge fees to find your pension. Taking a cautious, informed approach is the safest way to protect your retirement savings.
If you’re unsure, remember to seek formal financial advice from regulated body.
Your tax treatment will depend on your individual circumstances, and it may be subject to change in the future.
With investing, your capital is at risk, so the value of your investments can go down as well as up, which means you could get back less than you initially invested.
Wealthify does not provide advice. If you’re not sure whether investing is right for you, please speak to a financial adviser.
References
[1] Brits missing £31.1bn in unclaimed pension pots | Pensions UK
