TPR uses AI to take down fake pension websites
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The Pensions Regulator is building predictive models for a tool that helps detect scam websites as part of efforts by the Pension Scams Action Group to tackle the evolving scams threat.
The algorithms used are trained with real-world data, as regulators and crime agencies in the Pension Scams Action Group say fraudsters are becoming more sophisticated through artificial intelligence, creating more convincing fake websites and fake ‘consolidator’ apps.
The need to protect savers is acute; Action Fraud says £17.7m has been lost to pension fraud, averaging £47,000 per victim, though it is thought the majority goes unreported. Victims suffer not just the huge financial impact of the crime, but frequently have feelings of guilt and shame or lose self-confidence, putting strain on their relationships. Pension fraud victims might struggle to concentrate at work and feel financially unable to retire.
PSAG has to date reviewed 830 websites, taken down 29 high-risk sites and made 94 referrals to partner agencies, with each having the potential to cause harm to thousands of people, TPR said.
“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,” said Paul Sweeney, PSAG business lead at TPR. “Alongside this, we and our PSAG partners are collaborating more closely than ever, enhancing the intelligence we hold and disrupting emerging threats from scammers.”
PSAG held a webinar last month with more than 550 participants to discuss its efforts to fight fraud, including a new reporting service by City of London Police that will replace Action Fraud later this year. Action Fraud has been criticised for failing to sufficiently address the threat from fraud, but the introduction of a new service has been delayed.
The new 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”, said CoLP’s service delivery director, Chris Bell.
TPR urged trustees to still report to Action Fraud until the new reporting service launches, so that PSAG can build a national intelligence picture. The regulator’s surveys found just one in 10 (11%) defined benefit and defined contribution schemes correctly said scams should be reported to Action Fraud, despite guidance on the issue.
The algorithms used are trained with real-world data, as regulators and crime agencies in the Pension Scams Action Group say fraudsters are becoming more sophisticated through artificial intelligence, creating more convincing fake websites and fake ‘consolidator’ apps.
The need to protect savers is acute; Action Fraud says £17.7m has been lost to pension fraud, averaging £47,000 per victim, though it is thought the majority goes unreported. Victims suffer not just the huge financial impact of the crime, but frequently have feelings of guilt and shame or lose self-confidence, putting strain on their relationships. Pension fraud victims might struggle to concentrate at work and feel financially unable to retire.
PSAG has to date reviewed 830 websites, taken down 29 high-risk sites and made 94 referrals to partner agencies, with each having the potential to cause harm to thousands of people, TPR said.
“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,” said Paul Sweeney, PSAG business lead at TPR. “Alongside this, we and our PSAG partners are collaborating more closely than ever, enhancing the intelligence we hold and disrupting emerging threats from scammers.”
PSAG held a webinar last month with more than 550 participants to discuss its efforts to fight fraud, including a new reporting service by City of London Police that will replace Action Fraud later this year. Action Fraud has been criticised for failing to sufficiently address the threat from fraud, but the introduction of a new service has been delayed.
The new 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”, said CoLP’s service delivery director, Chris Bell.
TPR urged trustees to still report to Action Fraud until the new reporting service launches, so that PSAG can build a national intelligence picture. The regulator’s surveys found just one in 10 (11%) defined benefit and defined contribution schemes correctly said scams should be reported to Action Fraud, despite guidance on the issue.
