The FCA has launched Firm Checker, a tool that helps customers fight and avoid financial fraud and scams by checking if a firm is authorised.
Approximately 800,000 people reported losing money to investments or pension-related scams in the 12 months to May 2024, according to the regulator. Checking if a business has the correct permission to provide solutions and services can help individuals reduce their chances of falling victim to fraud.
Key findings from the FCA
One in six customers who have fallen victim to APP fraud, unauthorised consumer investments or pension-related scams likely were interested due to a promotion on social media, or via a telephone call (17%). 16% were initially approached through text message, WhatsApp, or another messaging platform.
In addition to checking if a firm is legitimate and authorised by the FCA for its services, individuals should also confirm that the contact details match those listed on the Firm Checker. This adds additional layers of security, especially as fraudsters make sure not to be spotted and appear legitimate.
FCA warns that scammers are constantly evolving their tactics to steal funds from innocent victims. Thus, when considering an investment, pension opportunity, loan or other financial service, the regulator recommends that individuals use Firm Checker to confirm if the business is legitimate and authorised. This, in turn, helps fight financial crime.
The regulator’s research also shows that, even though consumers are taking precautions to protect themselves, safety measures can be improved. 72% adults mentioned they always or usually reject or ignore unsolicited calls, emails, or texts about investment or pension solutions. 60% say they always or usually verify the authenticity of emails, messages or calls before providing personal or financial information.
In the survey, 17,950 people, representative of all UK adults, participated. 1.5% reported experiencing a pension-related or an investment-related scam this year, including crypto fraud. Extended to the general population, this means around 800,000 people.
