New online fraud checker tool launched after 800,000 people fall victim to scammers

A new online tool that helps the public check the trustworthiness of firms has been launched after 800,000 people fell victim to scammers in just one year.

The Financial Conduct Authority (FCA) is urging consumers to use its Firm Checker Tool, available on its website, before they consider handing money over to firms.

It comes after more than three-quarters of a million people reported losing money to scams related to investments or pensions between May 2023 and May 2024.

The FCA said a significant rise in financial scams was notable across social media platforms, including well-known personalities or companies being impersonated, products being offered by individuals or firms not regulated for them or simply by fake organisations.

The FCA said that while using the tool “won't remove all risk, using an authorised firm with the correct permissions will greatly reduce your risk of harm”. All companies operating in the UK across financial products or services must be licensed and regulated by the FCA.

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.”

Pat Hurley, director at the free consumer service the Financial Ombudsman Service (FOS), said: “Being the victim of a fraud or scam can be deeply distressing, and sadly for many people the financial implications can be life changing. The Financial Ombudsman Service continues to receive hundreds of cases a week from people who have been victims of fraud and scams.

“If asked to transfer money to a financial services provider – particularly if investment or pensions related – check the firm is authorised using the FCA firm checker and consider seeking independent financial advice.”

Gaucho Rasmussen, executive director of the organisation which leads the Pension Scams Action Group (PSAG), added: “Pension fraud can be devastating, and prevention is key in the fight against scammers. That’s why we and the PSAG urge pensions savers to use the FCA’s new tool. Always check who you are dealing with before making any decisions about your pension – even if the contact appears to be from an organisation you trust.

“No reputable company will contact you out of the blue – Stop, think and check!”