The Financial Conduct Authority (FCA) has launched Firm Checker, a tool designed to help consumers avoid financial scams.

The tool enables users to check whether a company is authorised and has the necessary permissions to offer services. This way, they know whether they are dealing with a reputable company and can more easily steer clear of fraudulent providers.

The initiative was prompted by FCA research which found that 800,000 people reported losing money to investment or pension scams in the 12 months to May 2024.

According to the survey, those who have experienced authorised push payment (APP) fraud or unauthorised consumer investment or pension fraud were most likely to learn about it through social media promotion (approximately one in six, or 17 per cent) or through a phone call (17 per cent).

Sixteen per cent were initially contacted via text message, WhatsApp or another messaging service.

The UK watchdog said that fraudsters often make it difficult for consumers to know whether they are dealing with a genuine company. The regulator advised that, in addition to checking whether a firm is authorised, people should also confirm that company contact details match those listed on Firm Checker.

In a statement, Sheree Howard, executive director of authorisations at the FCA, noted that fraudsters are constantly evolving their tactics to steal money from unsuspecting 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,” Howard added.

The FCA’s research also highlighted that many consumers are taking precautions to protect themselves. Around 72 per cent of adults said they always or almost always reject or ignore unsolicited calls, emails or texts about investment or pension opportunities.

Meanwhile, 60 per cent reported that they consistently verify the authenticity of communications before sharing personal or financial information.

Six in ten consumers also reported that they always or almost always verify the authenticity of emails, messages or calls before providing personal or financial information.

The watchdog added that Firm Checker was designed and tested with consumers to ensure ease of use, and that it will continue to refine the tool to further boost the user experience.

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