With financial scams continuing to surge, the FCA has introduced a new tool called Firm Checker to help consumers spot fraudulent operators before it’s too late. The tool allows users to confirm whether a company is authorised and properly licensed to offer financial services — a step that can dramatically reduce the risk of falling victim to fraud.
The research shows how scammers reach potential victims: those who experienced Authorised Push Payment (APP) fraud or unauthorised investment or pension fraud often saw the scam promoted on social media (17%) or received a phone call (17%). Another 16% were first contacted through text messages, WhatsApp, or other messaging platforms.
Criminals often mimic genuine companies, making it harder for people to distinguish between legitimate firms and fraudulent ones. Alongside verifying that a firm is FCA-authorised, the regulator urges users to double-check that the contact details provided by a business match the details listed on Firm Checker.
Sheree Howard, Executive Director of Authorisations at the FCA, emphasised the importance of staying vigilant:
“Fraudsters are constantly changing their methods to trick people out of their savings. Whether you’re exploring an investment, pension plan, loan, or any other financial product, Firm Checker can help you confirm you’re dealing with an authorised firm and protect yourself from financial crime.”
The findings also show that while many consumers are taking protective steps, more caution is needed.
- 72% of adults say they regularly ignore unsolicited calls, emails, or texts promoting investment or pension opportunities.
- 60% say they typically verify the legitimacy of communications before sharing any sensitive or financial information.
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