Pension scams: Government issues warning for pensioners, senior citizens

India has experienced a substantial digital transformation in recent years, with online platforms evolving to offer a convenient way for people to conduct banking and shopping activities. This shift towards digitalisation has brought about numerous benefits in terms of transaction efficiency and ease of access for the public. However, alongside these advancements, there has been a notable surge in online scams and fraudulent activities.

Cybercriminals have adapted to this digital landscape by continuously refining their methods and devising new tactics to deceive individuals for personal gain. Despite targeting individuals of all age groups, there is a concerning trend emerging where scammers are increasingly preying on the elderly population. Exploiting the trust and vulnerability of senior citizens, these criminals are employing sophisticated techniques to perpetrate financial fraud and swindle money from unsuspecting victims.

Alarmed with the trend, the government has issued a warning to pensioners concerning fraudulent schemes that target their retirement savings. The Central Pension Accounting Office (CPAO), responsible for managing central government pension funds, has taken action to inform pensioners about the most recent fraudulent activities. 

CPAO, in a recent notification, said: “It has come to our notice that fraudsters are impersonating officials from the Central Pension Accounting Office (CPAO), Bhikaji Cama Place, New Delhi, and contacting pensioners. These scammers are sending forms via WhatsApp/eMail/SMS, claiming that failure to fill them out will result in pension payments being stopped next month.”

It added: "We urge all pensioners to be cautious and not fall victim to these scams. Do not share your personal information, including your PPO Number, Date of Birth, and Bank Account details, with anyone. Please note that the CPAO, banks, and other government agencies will never request such information from pensioners."

The Assam Police recently alerted the public to a scam affecting retired individuals in the state. Reportedly, scammers are posing as Treasury Officers and reaching out to retirees, falsely alleging that their pensions are at risk of discontinuation.

In response to this deceitful scheme, authorities urge citizens to refrain from engaging with these illicit calls and to proactively block any suspicious phone numbers associated with the scammers. Authorities underscore the critical significance of cross-referencing any pension-related communications directly with the relevant government agency.

In August 2024, CPAO directed all Central Pension Processing Centres (CPPCs) of authorised banks to educate pensioners and raise awareness regarding fraudulent activities targeting them.

Here are important tips to help pensioners avoid falling victim to scams:

Verify the source: It is crucial to always directly contact the issuing agency or bank to confirm the authenticity of any phone calls or emails claiming to be from them. Avoid calling phone numbers provided in suspicious emails or messages.
Beware of false 'urgency': Scammers often use urgency to rush pensioners into making immediate decisions. Stay calm, verify information independently, and seek advice from a trusted family member or financial advisor before taking any action.
Report suspicious activity: If you suspect a scam, promptly report it to the CPAO, the bank, and local law enforcement agencies.

The CPAO also urged CPPCs to implement necessary measures to shield pensioners from falling prey to such fraudulent schemes and counterfeiting activities.