Pension schemes unequipped to deal with cybercrime

According to the survey by Crowe, 47% of pensions schemes are uninsured against cybercrime attacks

A large number of pension schemes are unequipped to deal with cybercrime, new research has revealed.

The research was carried out by advisory firm Crowe and presented via its latest risk management report, which was published yesterday.

The report surveyed a number of pension scheme trustees on the challenges that they are facing in the current economic climate. With many people facing economic hardship due to the increased cost-of-living, it showed both fraud and cybercrime are on the increase.

According to the survey's findings, 47% of pensions schemes are uninsured against cybercrime attacks. Similarly, 43% of the trustees revealed they have not tested the strength of their IT systems, or their procedures and processes for preventing cybercrime.

A similar number of pension schemes (42%) lack the access to specialist skills to investigate incidents of cybercrime, this rises to 50% of small pension schemes.

The report also concluded that just under half (49%) of trustees surveyed have not received specific scenario-based training to help them deal with potential scenarios of cybercrime.

A considerable proportion of pension schemes are also vulnerable to member identity theft, as 29% of schemes do not utilise electronic identity verification for UK-based members. This rises to 63% when it comes to overseas members of the schemes.

Crowe national head of forensic services Jim Gee said: Fraud and cybercrime are the crimes of the 21st Century, accounting for half of all crimes in England and Wales. With their high volume of payments to members and the amount of personal data held, pension schemes are seen as attractive targets by fraudsters. Trustees need to not only be aware of that fact, but act on it and implement preventative measures to mitigate the threat of an incident.