FCA launches Firm Checker to fight investment scams - how to use it

The FCA has launched their brand new Firm Checker, a quick online tool to help you spot dodgy firms before they get their hands on your hard-earned cash.

Investment scams are on the rise. In the year to May 2024, nearly 800,000 people got stung by investment or pension fraud. 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.”

How do scammers reel people in?

Here’s how people got caught out by APP fraud and pensions and investment scams last year:

• Social media posts and ads – around 17% of people spotted “investment opportunities” that turned out to be scams there
• Phone calls – another 17% were phoned by scammers
• Texts, WhatsApp or other messages – around 16% were scammed via messaging services

People can fall for a scam despite being careful. Around 72% of those surveyed said they generally ignored random calls, texts and emails about investments, while 60% say they look into messages before giving out personal info.

Fraudsters make themselves look legit, so don’t just trust a slick website or a posh logo. Use Firm Checker and confirm the contact details match what’s listed.

How to use FCA’s Firm Checker to avoid scams

Firm Checker was built and tested with real people, so it’s easy to use. Next time someone offers you an “amazing opportunity”, it's worth checking it out before handing over your personal information or cash.

Here’s how to use the tool:

1. Head to the Firm Checker and tap “check a firm”
2. Fill out the name of the firm and tap “search for firm”
3. If the firm comes up in the search results, tap “check firm”
4. Choose the type of product you want from the firm and tap “view permissions”

You’ll then be told whether the firm is genuine and authorised and how to check if it’s the actual firm contacting you or a clone.

If no results come up for the firm when you tap “search for firm” in step 3, a warning message will pop up to explain the firm may not be safe to deal with and why.

Even with clever tools like this, fraudsters come up with new scams designed to part you with your money all the time. Check out our fraud and scams hub to keep up to date with all the newest scams as well as tips on how to keep yourself safe.