Some 94 per cent of cases reviewed by the XPS Scam Protection Service raised at least one scam warning flag in July 2025, data has revealed.

XPS Group’s Scam Flag Index found there was a “sharp” increase in the amount of pension transfers that raised a scam warning flag, with 6 per cent more cases than June.

July’s finding represented the second time the index has surpassed 90 per cent over the past 12 months.

XPS Group senior consultant, Helen Cavanagh, said: “The increase in the Scam Flag Index highlights the persistent vulnerabilities around pension transfers, with 94 per cent of cases last month triggering at least one potential scam warning sign.

“This ongoing trend reinforces the need for stronger safeguards across the industry — not just through regulation, but through better systems and member support.”

XPS’s latest Transfer Value Index showed relatively stable transfer values compared to the previous few months.

The index decreased slightly to £139,000 reflecting a continued period of low market volatility driven by more stable gilt yields and inflation expectations.

Meanwhile, XPS Group’s Transfer Activity Index decreased in July to an annualised rate of 22 members in every 1,000 transferring their benefits to alternative arrangements.

While this is down from June’s two-year high, this still reflects elevated activity levels compared with much of 2024.

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