LONDON: The UK’s Financial Conduct Authority (FCA) has launched a new consumer tool, Firm Checker, to help combat rising investment and pension scams, after research showed that around 800,000 people reported losses to such fraud in the year to May 2024.
The tool allows consumers to quickly verify whether a financial services firm is authorised by the FCA and whether it has permission to offer specific products. Users can also cross-check a firm’s contact details against those listed on the FCA Register, reducing the risk of falling victim to impersonation scams.
FCA research found that fraudsters are increasingly targeting victims through familiar channels. About one in six scam victims first encountered fraud via social media or telephone calls, while 16% were contacted through text messages, WhatsApp or other messaging platforms.
Criminals often pose as legitimate, authorised firms, making it difficult for consumers to distinguish genuine providers from scammers. The FCA is therefore urging the public to verify not only a firm’s authorisation status, but also its phone numbers, email addresses and other contact details.
Sheree Howard, executive director of authorisations at the FCA, said the tool is designed to help consumers protect themselves as fraudsters continue to evolve their tactics. She encouraged anyone considering investments, pensions, loans or other financial services to use Firm Checker before proceeding.
While the research shows progress in consumer awareness, 72% of adults said they usually reject unsolicited investment communications, only 60% consistently verify authenticity before sharing personal or financial information, leaving many still at risk.
The FCA said Firm Checker is part of broader efforts to improve transparency, boost consumer confidence and reduce financial crime across the UK. Source: Fintech Global
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Why this matters:
- Impersonation of authorised firms is now one of the most common scam tactics.
- Fraudsters exploit trusted channels such as social media, phone calls and messaging apps to appear legitimate.
Key takeaway for the public:
- Always verify both a firm’s authorisation and its contact details using official registers.
- Reject unsolicited investment offers and independently confirm before sharing any information.
Tools like Firm Checker show that verification and not speed is the best defence against modern financial scams.
