Cybersecurity experts have warned the industry that the implementation of the pensions dashboard might lead to an increase in fraud as personal data is put online.
The plan behind the pension dashboard, which is due to launch in 2019, is to create the technology to allow savers to see all of their retirement pots in one place at the same time, giving them a greater awareness of their assets and how to plan for their retirement.
At the Association of British Insurers’ (ABI), experts said the industry needs to be vigilant against fraud.
“Customers are handing over their birth certificates and marriage certificates to their providers, so they are ultimately leaving themselves open to fraud.
“The onus is on the pensions scheme provider to verify that, before the customer transfers from their scheme, that they have received the right information and that they aren’t transferring to a fraudulent scheme,” Alex Anisie, privacy and cyber security director, financial services at KPMG, said, according to the FT.
However, the government’s announcement on its digital identity project has been hailed as a “significant step” for the pension dashboard.
Oliver Dowden, minister for implementation, told Parliament the private sector would take responsibility for broadening the usage and application of the Gov.UK Verify programme.
Introduced in 2016, this identity assurance system was intended to provide a single trusted login across all UK government digital services, verifying the user’s identity in 15 minutes.
The government has backed away from killing the pensions dashboard project after coming under fire from the industry.
Around 10 million people in the UK would stand to retire with £15,000 less if the government scrapeped the pension dashboard, according to research by 38 Degrees.