A pensions shake-up in the UK will bring with it an increase in identity fraud, it has been warned. The introduction of pension dashboards pose a “huge” threat to data security, according to Lisa Lyon, managing director at Target Professional Services.
Speaking at the annual Pension Authorisation Standards Authority, Lyon said: “Personally I think it is huge”. Lyon said: “It shows how easy it would be for fraudsters to find information about how many pensions someone has and how much money they have in each.”
Lyon told the conference: “Identity fraud costs the UK £1.8bn each year. We are currently going into a digital world with pensions. The pensions dashboard is going to see an increase in identity fraud because it presents a great opportunity for fraudsters.”
READ MORE: Nine state pension changes kicking in from DWP next month
READ MORE: ‘Final warning’ over axed DWP benefit as there will be ‘no further payments’
READ MORE UK tourists warned as Menorca, Majorca, Ibiza begin ‘expelling’ people
She added: “We don’t want to make it too difficult for the pension member but we don’t want to put them at risk either. I strongly believe there needs to be a bigger education piece on what the standards are and what they mean for all of us.
“We are quite a way away from eliminating pension fraud, but it is about education.” The Pasa conference took place in London on March 24.
Oliver Morley, chief executive of the Money and Pensions Service, which provides MoneyHelper, stated: “Pensions dashboards will transform how people view their retirement savings, and will help pension providers and schemes’ engagement with better-informed customers and members.”
He added: “Dashboards are a truly collaborative effort between government, industry and regulators.” He concluded by saying: “We are working hard together to create a service that puts savers in control of their pensions.”
Meanwhile, Yvonne Braun, the ABI’s director of policy for long-term savings, health and protection, said: “Pensions dashboards will be a huge catalyst for positive change in how people engage with their pensions, including helping them find lost pension money.”
She welcomed the Government’s ongoing support, adding: “We are reassured to see the Government’s continued commitment to the programme, and to launching both a state-owned MoneyHelper dashboard and enabling commercial dashboards.”
