The Financial Conduct Authority has launched a new tool in a bid to help fight financial crime.
According to the regulator’s research, around 800,000 people reported losing money to investments or pensions related scams in the 12 months to May 2024.
To help combat this, the FCA has launched ‘Firm Checker’ to help consumers avoid scams.
It said that by using the tool and checking if a firm is authorised and has the correct permissions to provide services, people can significantly reduce their chances of falling victim to fraud.
FCA shuts 1,600 sites in financial crime crackdown
According to the regulator, those who had experienced any Authorised Push Payment (APP) fraud or unauthorised consumer investments or pensions-related fraud were most likely to have heard about it by seeing it promoted on social media.
Around 1 in 6 (17%) said this was the case, while 17% said it was via a telephone call.
Sixteen per cent were initially approached via text message, WhatsApp or another messaging service.
In addition to checking if a financial services firm is authorised by the FCA for the services being offered, the FCA said people should also confirm that the contact details match those listed on the Firm Checker.
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 FCA’s research also found consumers are taking some precautions to protect against fraud but there is room for improvement.
Around three in four (72%) adults said they always or usually reject or ignore unsolicited calls, emails or text messages about investment or pension opportunities.
Six in 10 (60%) consumers reported that they always or usually verify the authenticity of emails, messages or calls before providing personal or financial information.
