The Financial Conduct Authority (FCA) has launched a new consumer-facing tool aimed at tackling rising levels of investment and pensions-related fraud, as new research reveals the scale of financial crime affecting UK consumers.
According to the regulator, around 800,000 people reported losing money to investment or pensions scams in the 12 months to May 2024, underlining the growing sophistication and reach of fraudsters targeting the public.
The new Firm Checker tool has been designed to help consumers quickly verify whether a financial services firm is authorised by the FCA and whether it has the correct permissions to offer specific products or services. By checking a firm’s regulatory status and matching its contact details against those listed on the FCA Register, consumers can significantly reduce the risk of falling victim to scams that impersonate legitimate firms.
The FCA’s research highlights how fraudsters are increasingly using familiar and trusted communication channels to reach potential victims. Among those who experienced Authorised Push Payment (APP) fraud or unauthorised investment or pensions-related fraud, around one in six first encountered the scam through social media, while the same proportion were contacted by telephone. A further 16% said they were initially approached via text message, WhatsApp or another messaging service, reflecting the growing use of digital platforms in financial crime.
These tactics often involve criminals posing as authorised firms, making it difficult for consumers to distinguish between genuine providers and fraudulent actors. The regulator is therefore urging people not only to confirm that a firm is authorised, but also to check that phone numbers, email addresses and other contact details align with those shown on the FCA’s records.
Sheree Howard, executive director of authorisations at the FCA, said, “Ruthless fraudsters are constantly evolving their tactics so they can steal money from innocent victims. Whether you’re considering an investment, pension opportunity, loan or other financial service, use Firm Checker to confirm the firm is authorised and help fight financial crime.”
The research also suggests that while many consumers are taking steps to protect themselves, further improvement is needed. Around 72% of adults said they always or usually reject unsolicited calls, emails or text messages relating to investment or pension opportunities. However, only 60% reported that they consistently verify the authenticity of communications before sharing personal or financial information, leaving a significant proportion still exposed to potential scams.
By launching Firm Checker, the FCA aims to strengthen consumer confidence, reduce impersonation fraud and support wider efforts across the RegTech and financial services sectors to combat financial crime through greater transparency and education.
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