By GB News (World News) | Created at 2025-03-25 14:56:19 | Updated at 2025-03-26 01:28:36
10 hours ago
Labour’s plans to overhaul the pension system have come under fire amid warnings the reforms could lead to a sharp rise in identity fraud.
A leading industry expert has raised concerns that the new pension dashboards could open the door to serious data breaches and fraudulent access, putting millions at risk.
The Government project aims to allow savers to access all their pensions information in one place.
However, Lisa Lyon, managing director at Target Professional Services exlained this reform poses a "huge" threat to data security and could lead to increased identity fraud.
During the annual Pension Authorisation Standards Authority conference she said: "The pensions dashboard is going to see an increase in identity fraud because it presents a great opportunity for fraudster."
With the largest pension providers set to connect to the dashboard ecosystem by April 2025, concerns are mounting about potential security vulnerabilities in the system.
Lyon shared a personal example where a colleague within her organisation was unintentionally able to access her Government One Login account
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Lyon shared a personal example where a colleague within her organisation was unintentionally able to access her Government One Login account.
She said: “If dashboards were already live they would have been able to see all of my pension information."
She warned the incident highlights just how vulnerable the system could be to fraud adding: “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."
She urged those in the pensions industry to familiarise themselves with the government’s Good Practice Guide on identity verification, stressing the importance of robust checks before the dashboard system goes live.
She urged those in the pensions industry to familiarise themselves with the government’s Good Practice Guide on identity verification
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The potential impact is significant, with Lyon revealing that "identity fraud costs the UK £1.8billion each year".
She expressed particular concern about the move towards digital pension systems.
"We are currently going into a digital world with pensions," Lyon said, highlighting the growing risk as more pension information becomes available online.
The pension dashboard project has been repeatedly delayed since its inception in 2016, with implementation now being phased in gradually.
The largest pension providers must connect by April 2025, with smaller schemes following until September 2026.
By October 31, 2026, all pension schemes and providers must have their data ready for the dashboards, though public launch may not occur until 2026 or 2027.
Progress on the pension dashboards project is moving forward, but challenges remain, according to David Walmsley, director of supervision and market oversight at TPR.
The potential impact is significant, with Lyon revealing that "identity fraud costs the UK £1.8bn each year
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"Eight in 10 schemes have said they expect to connect in line with their phased connection," he said.
Lisa Picardo, chief business officer at PensionBee, added: "This means they'll send their data across and user testing can begin."
However, data quality remains a concern. "One in four schemes still have dashboard data in non-digital form, which is huge," Walmsley warned.
"There’s still a lot to do, especially for DB schemes, to ensure value data is up to date."
Lyon said stronger education for trustees and members is key to reducing fraud risk.
"We don't want to make it too difficult for pension members, but we don't want to put them at risk either," she said. "It's about education."
The PASA conference was held in London on March 24.
