Pension fraud worth GBP 4.7million has been reported by members of the public in May, according to Action Fraud, part of the City of London Police.
Action Fraud said losses of GBP 1.4m were reported in April and GBP 932,000 in March, effectively tripling the amount.
The increase comes just one month after the introduction of new pension freedoms in April, although Action Fraud was quick to point out it is too early to conclude that the increase was a direct result.
Pension minister Ros Altmann said she was 'not convinced' pension freedoms are responsible for the increase.
"People are a lot more aware of it and are starting to report. It can take a long time for people to realise they have lost their money," she told BBC Radio Five Live.
Action Fraud figures state that victims lost an average of GBP 60,500 – in some cases more than half their pension.
Frauds usually occur when fraudsters contact pension holders and persuade them they can release their money for a fee.
Anyone under the age of 55 is then liable for tax on their liberated pension – up to 55%.
Despite the rise in the amount of fraud, the number of individual cases has actually decreased from 78 cases of reported fraud in both May and April, down from 82 in March and 240 in February.
Malcolm McLean, senior consultant at Barnett Waddingham, said the losses are "disturbing".
He said: "The losses reported in May give weight to the fears previously expressed by many commentators that the new pension freedoms would open the door to fraud activity."
"Clearly, the fraudsters are fully aware that many pensioners now have ready access to large capital sums and are potentially a soft target for the many and various scams that currently exist."
McLean called on the Pensions Regulator and the Police to "redouble efforts" to clamp down on activity and prosecute offenders.
Project Bloom, a multi-agency campaign led by the Department of Work and Pensions, has been set up to prevent this kind of fraud.
First published 30.07.2015
Lindsay.sharman@wilmingtonplc.com
