The proportion of pension transfers showing signs of a scam rose "sharply" in July 2025, with XPS Group's latest Scam Flag Index revealing that 94 per cent of cases reviewed by the XPS Scam Protection Service raised at least one scam warning flag. 

This marks a 6 per cent increase compared to June 2025 and only the second time the index has surpassed 90 per cent over the past 12 months.

Less of a shift was seen in terms of transfer values or activity, as XPS’s latest  Transfer Value Index showed relative stability in transfer values compared to the previous few months.

According to the index, transfer values decreased slightly to £139,000, following 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. 

Although this is down from June’s two-year high, XPS pointed out that this still reflects elevated activity levels compared with much of 2024, and continues a pattern of greater overall stability across the market this year.

Commenting on the findings, 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.”
 
The concerns come amid renewed focus on pension transfer times and security, with renewed concerns raised around the potential delays that some savers may be facing when looking to transfer their pension, and a public petition for a 10-day switch guarantee recently launched by PensionBee.

However, the Financial Conduct Authority's (FCA) recent review of pension transfers found that most firms complete transfers within a reasonable timeframe, with the watchdog emphasising that good service is not just about how quickly the transfer can happen, as consumers must be protected from scams.

Orgio also recently suggested that recent progress painted a "positive story" for savers, after it found that simpler pension transfer times fell to an average of 10.8 days in the 12 months to 30 June 2025.

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