The pensions fraud risk report offers a revealing look into the fraud risks currently facing pension schemes today. With an increase in the number of schemes experiencing fraud, RSM investigates the attitudes and responses from those within the industry.
With over 140 respondents, our survey revealed that although schemes are beginning to consider the risks of fraud, ignorance and complacency often keeps them vulnerable and open to attacks from fraudsters.
In addition to awareness, training and education are key to the detection and prevention of fraud.
Findings at a glance
- Over one third of schemes in 2015 said they had experienced fraud, more than double the proportion in 2013
- 2013 – 17 per cent
- 2015 – 37 per cent
- 40 per cent of schemes have not tested their internal controls within the past 12 months - in breach of TPR recommendations
- Third-party administered schemes test controls least regularly – and have suffered most fraud
- 26 per cent of trustee respondents did not know they themselves are responsible for fraud detection and prevention
- 47 per cent of trustee boards have not received training on mitigating fraud risk, down from 57 per cent in 2013
In periods of economic downturn and the early stages of recovery, the need to respond appropriately to fraud and corruption is essential. We support our clients in navigating issues of fraud, corruption, asset recovery, misconduct of trustees, directors, employees, third parties and breaches of regulation.
Please contact Ian Bell or your usual RSM pension contact to discuss further.