Global: FCA Unveils ‘Firm Checker’ Tool to Strengthen Consumer Protection Against Financial Crime

New research from the Financial Conduct Authority (FCA) shows that nearly 800,000 people reported losses to investment or pensions-related scams in the 12 months to May 2024—underscoring the growing sophistication of financial fraud.

According to the findings, victims of Authorised Push Payment (APP) fraud or unauthorised investment and pensions scams were most commonly targeted through social media promotions (17%) or unsolicited phone calls (17%). A further 16% were initially approached via text messages, WhatsApp, or other messaging platforms.

In response, the FCA has launched ‘Firm Checker’, a new digital tool designed to help consumers quickly verify whether a firm is authorised and holds the appropriate permissions before engaging with its services.

Sheree Howard, Executive Director of Authorisations at the FCA, emphasised the urgency:
“Fraudsters are constantly adapting their tactics to steal money from innocent victims. Whether you’re considering an investment, pension product, loan, or any other financial service, Firm Checker helps you confirm a firm’s authorisation and play your part in fighting financial crime.”

While the FCA says the tool has been “specially designed for, and tested with, consumers,” the full scope of its features has not yet been detailed.

However, some experts are calling for caution. Lisa Mckinnon-Lower, Partner at Spencer West, warns that digital tools alone may not fully protect vulnerable consumers.
“Those most frequently targeted often struggle to navigate verification tools—especially when pressured in real time by sophisticated scammers. Even when consumers check a firm’s authorisation, cloned entities and misleading permissions can still create confusion.”

She adds that, if well-designed and widely adopted, the tool could become a powerful asset in the UK’s broader fight against fraud.