Pension scam victims urged to check if they’re owed compensation

Around £81.5m in compensation has been paid out to victims of pension scams – and thousands more could still be eligible for a payout.

More than 2,000 people who were members of 58 different pension schemes have already received compensation. 

The payouts were arranged by The Pensions Regulator (TPR), the Fraud Compensation Fund (FCF), The Pensions Ombudsman (TPO) and Dalriada Trustees, a specialist firm appointed to manage suspected scam schemes.

Here, Which? explains how the scheme works, who might qualify and how to avoid falling victim to a pension scam.

Why are victims now getting compensation?

A High Court ruling in 2020 confirmed that occupational pension schemes set up as part of a scam can be eligible for compensation from the FCF.

The FCF is a statutory fund, managed by the Pension Protection Fund (PPF), which pays compensation to workplace pension schemes where the employer is insolvent and the scheme has suffered financial loss due to dishonesty, such as a trustee stealing funds.

Before this ruling, it wasn’t clear whether a scam pension could qualify for compensation. But as these cases increased in the 2010s, the courts stepped in. 

The judgment confirmed that so-called ‘pension liberation’ scams – where savers are persuaded to transfer their money into bogus or unregulated schemes – could also be covered by the FCF.

Following the ruling, Dalriada Trustees began the process of recovering funds and paying compensation. Other trustees appointed by the regulator are also pursuing similar claims.

• Find out more: best pension drawdown providers 2025.

Who can claim compensation?

You may be eligible if you were a member of an occupational pension scheme set up as part of a scam.

These schemes often look like legitimate workplace pensions. Scammers may create shell companies and fake pension schemes to trick people into transferring their savings. Victims may only realise what’s happened years later when they try to access their money.

If this sounds familiar, you may now qualify for compensation. The FCF website lists the schemes already identified, so check there first to see if yours is included.

• Find out more: how much you need to retire.

How to check if you're owed money

Claims are usually made by a scheme’s trustee, but members, beneficiaries or authorised representatives can also apply.

Start by checking the FCF website to see if your scheme is listed and whether a claim has already been submitted. If it has, you don’t need to take any action – only one claim is needed per scheme.

If not, contact the FCF for advice:

• Email fraudcompensationfund@ppf.co.uk
• Phone 0330 123 2222.

If you're advised to make a claim, you can submit it through the FCF’s online form. You’ll need to provide:

• Your contact details
• The name of your pension scheme
• Any supporting documentation (for example, trust deeds, investment details)
• A short summary of what happened or what you suspect took place.

The FCF recommends building a picture based on evidence, so try to answer the questions, such as where the dishonesty was and who was responsible.

Your claim will be assessed once submitted. Processing times vary depending on the complexity of the scheme. An accountant will calculate the amount of compensation based on how much was lost through dishonesty.

• Find out more:  do you know where your pension is invested?

What to do if you've been targeted by a pension scam

If you suspect a scam – whether or not you’ve lost money – report it.

To report a pension scam or unauthorised firm:

• Call Action Fraud on 0300 123 2040
• Call the FCA helpline on 0800 111 6768
• Or use their online reporting tools

To report nuisance calls or messages:

• Contact the Information Commissioner’s Office on 0303 123 1113
• Or use its online reporting tool.

Find out more: how to report a scam.

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3 warning signs of a pension scam 

Pension scams can be hard to spot. Scammers often sound convincing, use official-looking documents and set up professional websites. But there are a few warning signs that could help you avoid falling victim.

1. Unexpected contact

If someone contacts you out of the blue about your pension, it’s likely a scam. Since 2019, cold calling about pensions has been banned, and genuine pension providers will only contact you if you’ve asked them to.

If a firm refuses to let you call them back or pressures you to act quickly, walk away.

Scammers often cold call, message or use social media to target victims. Unexpected contact can frequently catch someone off-guard, leaving them vulnerable to scammer tactics. 

• Find out more:  'a cold call scam drained £96,000 from my pension savings'.

2. Pressure to act fast

Scammers often create a false sense of urgency – for example, saying there’s a limited-time offer or even sending someone to your door. This tactic is designed to stop you from thinking things through.

A legitimate pension provider will never rush you to move your money.

3. Unrealistic promises

Be cautious if you’re offered:

• A free pension review
• High guaranteed returns
• Early access to your money before the age of 55 (rising to 57 in 2028)
• Tax loopholes or overseas investments.

If it sounds too good to be true, it probably is. Always check who you're dealing with using the Financial Conduct Authority (FCA) register of authorised firms.

If you’re considering changing your retirement arrangements, it's essential to seek financial guidance or advice beforehand and conduct your own independent research to verify the legitimacy of any pension offer. 

You should always check who you're talking to with the FCA's register of authorised firms and advisers.