New Guidance on Identity Management and Assurance
Strengthen identity processes at every stage of the member journey
Identity fraud poses a growing risk to the pensions industry, fuelled not only by the rising value of pension pots, increasing member transfers, and greater digital engagement with schemes but also by the proliferation of small pension pots. As people move between jobs more frequently and accumulate multiple workplace pensions, it becomes harder for individuals to keep track of their savings, creating opportunities for fraudsters to exploit fragmented pension records.
Criminals are exploiting weaknesses in verification processes to impersonate members, redirect payments, and access funds. In response, the Pensions Administration Standards Association (PASA), in collaboration with LexisNexis® Risk Solutions, has published new guidance to help schemes strengthen identity verification across the member lifecycle, from onboarding to retirement and beyond.
Pension scams cost victims over £26 million between 2020 and 2022, and with more than £26.6 billion sitting in unclaimed or lost pension pots, the stakes have never been higher. At the same time, the increasing digitalisation of the industry is reshaping how administrators interact with members, creating new demands for fast, secure, and consistent identity practices.
A Risk-Based Approach to Identity Management
The PASA Identity Verification (IDV) User Guide provides a framework for assessing and managing identity risks throughout the member lifecycle, from changes to personal data, to transfers, retirements, and notification of death. It recognises that while there’s no one-size-fits-all solution, a common baseline is essential to help administrators detect red flags, protect vulnerable members, and reduce friction.
The guide also acknowledges the rapid emergence of new fraud typologies such as synthetic identities, AI-generated documentation, and social engineering, which require multi-layered, digitally enabled solutions.
The Future of Identity in Pensions
Digital pensions dashboards, increasing member mobility, and changing fraud patterns all point to one thing: robust, flexible and secure identity management must become a core capability for every scheme.
This new guidance from PASA and LexisNexis Risk Solutions is a significant step toward that goal. It not only supports administrators in adopting best practice but also sets out the tools and techniques required to build resilience across the entire pensions ecosystem.
Download the PASA Identity Verification User Guide to understand the emerging risks and learn how to strengthen your identity strategy across the pension lifecycle.
LexisNexis® IDU®
Our IDU® solution gives pension schemes access to a powerful combination of identity verification, fraud detection, enabling administrators to validate key identity elements, such as names, addresses, dates of birth, and financial behaviours, in an instant, whilst also helping identify anomalies, flag potential fraud, and stay compliant.
In addition, through LexisNexis® IDU® Remote Check, it offers remote document-centric identity verification with facial biometrics, liveness and proof of address.