FCA creates consumer tool to help fight fraud
Image: FCA
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The Financial Conduct Authority has launched ‘Firm Checker’, a tool aimed at helping consumers avoid scams as the level of fraud activity in the UK risks causing irreparable damage to trust in financial services.
About 1.5% of people reported losing money to investments or pensions‑related scams in the 12 months to May 2024, the FCA’s Financial Lives 2024 research suggests.
The regulator is now asking consumers to check if a firm they are dealing with is authorised for the product it offers with the new ‘Firm Checker’ tool when dealing with financial services providers. People should also confirm that the contact details match those listed on Firm Checker, the FCA noted.
“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,” Sheree Howard, executive director of authorisations at the FCA, said.
The FCA Financial Services Register remains in place as the full regulatory record of the authorised financial services population.
Firm Checker has been tested with consumers, according to the watchdog, which said it continues to explore where further clarity can be added and is making improvements where necessary.
The tool has been welcomed by the Pensions Regulator. TPR leads the Pension Scams Action Group, a taskforce involving the FCA, Department for Work and Pensions, Treasury, Money and Pensions Service, National Economic Crime Centre and the Pension Scams Industry Group.
About 1.5% of people reported losing money to investments or pensions‑related scams in the 12 months to May 2024, the FCA’s Financial Lives 2024 research suggests.
The regulator is now asking consumers to check if a firm they are dealing with is authorised for the product it offers with the new ‘Firm Checker’ tool when dealing with financial services providers. People should also confirm that the contact details match those listed on Firm Checker, the FCA noted.
“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,” Sheree Howard, executive director of authorisations at the FCA, said.
The FCA Financial Services Register remains in place as the full regulatory record of the authorised financial services population.
Firm Checker has been tested with consumers, according to the watchdog, which said it continues to explore where further clarity can be added and is making improvements where necessary.
The tool has been welcomed by the Pensions Regulator. TPR leads the Pension Scams Action Group, a taskforce involving the FCA, Department for Work and Pensions, Treasury, Money and Pensions Service, National Economic Crime Centre and the Pension Scams Industry Group.
“Pension fraud can be devastating – and prevention is key in the fight against scammers,” said Gaucho Rasmussen, executive director of the enforcement and legal group at TPR. “That’s why we and the Pension Scams Action Group urge pensions savers to use the FCA’s new Firm-Checker 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!”
The 2024 survey found consumers are taking some precautions to protect against fraud; three-quarters (72%) of adults said they always or usually reject or ignore unsolicited calls, emails or text messages about investment or pension opportunities, and 60% of consumers reported that they always or usually verify the authenticity of emails, messages or calls before providing personal or financial information.
Victims of authorised push payment fraud, unauthorised consumer investments or pensions-related fraud were most likely to have seen it promoted on social media (17%) or been approached via a telephone call (17%). Text messages or other messaging services including WhatsApp were also frequently used to initiate a fraud (16%).
