Over nine in 10 (92 per cent) cases reviewed by the XPS scam protection service in June 2024 raised at least one scam warning flag, the highest level for nine months.
XPS said the latest findings represent the highest level of flags since September 2023 and marks an increase from the prior month when it stood at 89 per cent.
However, XPS pointed out that, despite this, the index has remained relatively stable over the past quarter, with June 2024 being the first month of the year to exceed 90 per cent of cases reviewed raising at least one scam warning flag.
XPS Group senior consultant, Helen Cavanagh, said: “We have seen yet another quarter of the transfer value index remaining stable, although average transfer values are about 5 per cent lower when compared with the same period last year.”
Additionally, XPS’s transfer activity index reported a marginal decrease over June 2024, to an annualised rate of 15 members in every 1,000 transferring their benefits to alternative arrangements.
This is the seventh consecutive month the index has remained below 20 members per 1,000, compared to just a single occurrence in the prior year.
The second quarter of 2024 has seen the lowest volume of transfers since the index was first published.
Cavanagh added that the reported decline in transfer values may be contributing to the “historically” low transfer volumes, with the transfer activity index being “lower than ever before” over 2024.
“With the new government in place, we hope to see increased engagement from them on the transfer regulation changes that were discussed with the industry prior to the General Election, which could potentially lead to falls in the scam fag index in future,” she added.
Finally, XPS reported that its transfer value index has “held steady” in June at £156,000, marking the sixth consecutive month that the index has been at or below £160,000.
XPS added that the index has shown “remarkable” stability so far this year, with the latest change in the last six months being a decrease of 3.4 per cent from March to April.
Additionally, the second quarter of 2024 was reported to be the most stable in three years, driven by lower volatility in gilt yields and long term inflationary expectations.
tom.dunstan@ft.com
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