Watchdogs say "fraudster families" are targeting pensioners to try and trick them out of the retirement savings.

The Pensions Regulator is warning that organised crime groups led by married couples or families are running scams worth millions of pounds.

In some cases the families have hired rogue financial experts with specialist pension knowledge, including accountants, advisers and trustees, to run the large-scale scams for them. Without these professional enablers the frauds would not be successful.

Victims of pension scams lost an average £91,000 each to crooks in 2017 but some people have lost much bigger sums reaching into hundreds of thousands of pounds.

They say cold calls offering free pension reviews and promises they would get high returns on investments were the key ways thieves lured them in.

A cold calling ban came into force earlier this month which should help to prevent people falling for “free pension reviews”. However, rogues are always one step ahead and will simply switch to offering opportunities too good to miss on other financial products.

The evidence of these criminal gangs comes from intelligence gathered by members of the multi-agency Project Bloom group, which was set up to tackle pension scams.

Nicola Parish, executive director of frontline regulation at The Pensions Regulator, said: “Trustees and administrators play a key role in preventing members from falling victim to scams by identifying suspicious requests early.

“The better they are at spotting the signs of a scam, the quicker members can be warned and we can investigate.

“Working together we can target those trying to plunder people’s pension pots and bring them to justice.”

Those considering transferring their pension can visit www.fca.org.uk/ScamSmart for more help to understand the signs of a scam.

How to protect yourself

If you think you have been a victim of a pension scam, report it to Action Fraud at www.actionfraud.police.uk.

Here are four steps to protect yourself from pension scams from Project Bloom:

Reject unexpected pension offers, whether made online, on social media or over the phone.

Check who you are dealing with before changing your pension arrangements – check the FCA register or call the FCA to see if the firm you are dealing with is authorised by the FCA.

Do not be rushed or pressured into making any decision about your pension.

Consider getting impartial information and guidance from the Pensions Advisory Service.

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