CITY regulators are launching a new campaign to tackle pension scams as alarming figures show that victims of fraud lost an average of £91,000 each in 2017.

The Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) have joined forces to urge the public to “be on their guard” when receiving unexpected offers about their pension and to check who they are dealing with.

A new ScamSmart advertising campaign will target pension holders aged 45-65, the group most at risk of pension scams, the duo said.

A total of 243 victims reported to Action Fraud that they had lost more than £23 million to pension scammers in 2017, equating to an average loss of £91,000 per victim.

However, it is thought that only a minority of pension scams are ever reported.

It comes as “highly sophisticated” scammers continue to lure people into transferring their pensions into fraudulent schemes, the FCA warned.

One of the most common tactics is to offer a “free pension review”, with cold calling the most common method used to initiate pension fraud.

Other scam tactics include unexpected contact via phone, post or email, promises of guaranteed high returns and downplaying the risks and offering unusual or overseas investments that are not regulated by the FCA.

The latter can include overseas hotels, forestry and green energy schemes.

Other methods used by fraudsters include putting people under pressure to make a quick decision, for example with time-limited offers, and sending a courier round with paperwork to sign.