The FCA has launched a new consumer protection tool, Firm Checker, as fresh research highlights the scale of investment and pensions-related fraud across the UK.
According to the regulator, around 800,000 people reported losing money to investment or pension scams in the 12 months to May 2024, underlining the growing sophistication and reach of financial crime.
Firm Checker has been designed to help consumers confirm whether a financial services firm is authorised and holds the correct permissions to provide specific products or services. By encouraging individuals to verify firms before engaging with investment, pension, loan or other financial offers, the FCA believes the tool can significantly reduce the likelihood of consumers falling victim to fraud.
The research reveals that scammers are increasingly relying on familiar and trusted communication channels to target victims. Among those who experienced Authorised Push Payment (APP) fraud or unauthorised investment or pensions-related fraud, around one in six (17%) first encountered the scam through social media promotions. A similar proportion, 17%, reported being contacted via telephone calls, highlighting the continued effectiveness of direct outreach methods for fraudsters.
Messaging platforms also remain a common route for scam approaches. Sixteen per cent of respondents said they were initially contacted through text messages, WhatsApp or other messaging services. These tactics often make it difficult for consumers to distinguish between legitimate firms and criminals impersonating authorised providers.
To address this, the FCA is urging consumers not only to check whether a firm is authorised, but also to ensure that the contact details they are using match those listed on the FCA’s official register through Firm Checker. This additional step is intended to counter so-called ‘clone firm’ scams, where criminals pose as genuine, regulated businesses.
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 findings also suggest that while many consumers are taking steps to protect themselves, there is still room for improvement. Around 72% of adults said they always or usually reject or ignore unsolicited calls, emails or text messages related to investment or pension opportunities. Meanwhile, 60% reported that they routinely verify the authenticity of communications before sharing personal or financial information, indicating progress but also highlighting gaps in consumer vigilance.
The FCA hopes that Firm Checker will become a routine part of consumer decision-making, strengthening defences against fraud at a time when financial crime continues to pose a significant risk.
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