How the Mail exposed the data vultures

THE Mail’s investigation was launched after we received information about a major fraud on elderly people in the run-up to next month’s pension reforms.

Thousands of vulnerable older people are thought to have been scammed over the phone. And it was made possible because those behind it had access to a database packed full of personal details about potential victims.

The Mail was passed the names of three businesses that had sold personal information on pensioners to the people suspected of the fraud. We were also pointed to a number of other data firms which – although not linked directly to the fraud currently being investigated by police – were causing concern because of the way they were selling information.

Posing as a cold-calling business, two reporters approached the data firms and asked them if they would sell us information relating to people’s pensions.

The reporters stated they were looking to target older people – as well as middle aged people with pensions – to try to sell them investments and financial advice.

Even the most basic checks, though, would have revealed that our ‘company’ was little more than a website – and, crucially, was not recognised by the Financial Conduct Authority. During meetings with the firms, which we filmed covertly, we found they were willing to sell us the details of thousands of pensioners with no real checks on who we were or what we planned to use the information for.

One offered to send out thousands of unsolicited and misleading text messages in the hope of luring pensioners to our products – just days after being handed an enforcement notice for the same thing.

The investigation exposed a string of other unscrupulous practises. Some firms admitted carrying out phone surveys without obtaining proper consent, then selling on the data. The Information Commissioner’s Office has now launched a full investigation into the activities uncovered by the Mail.