The UK’s financial regulator has launched a new tool designed to help consumers avoid online investment fraud and other scams.
The Financial Conduct Authority (FCA) explained that “Firm Checker” will enable consumers to see if a financial firm they’ve been approach by is authorized by the regulator and/or has permission to provide the services it is claiming to offer. They can also check that the contact details of the firm match those listed on the FCA Firm Checker.
“Ruthless fraudsters are constantly evolving their tactics so they can steal money from innocent victims,” said FCA executive director of authorizations, Sheree Howard.
“Whether you’re considering an investment, pension opportunity, loan or other financial service, use Firm Checker to confirm the firm is authorized and help fight financial crime.”
The FCA added that its Financial Services Register has extra information on firms not covered by the tool, including published restrictions relating to crypto activities, historic fines, their right to approve financial promotions and their ability to handle client money.
There are also categories of organization that it doesn’t regulate, which aren’t covered by the Firm Checker.
The tool is a step in the right direction, but won’t “fundamentally shift the dial” on financial fraud, according to Jonathan Frost, director of global advisory EMEA at BioCatch.
“Fraud isn’t happening because consumers are choosing unregistered firms. It’s the registered firms themselves being weaponized as part of the social engineering journey. Victims are directed to them as a proof point, before being diverted to an entirely different entity to make an investment,” he argued.
“Given that social engineering is predicated on circumventing controls, no search tool will meaningfully reduce fraud. The real answer lies in tackling the manipulation at its source, mainly on social media platforms and disrupting the money mule networks that move the profits.”
Michael Shand, managing principal at consultancy Capco, added that the tool shouldn’t be viewed as a silver bullet and consumers will still need to remain vigilant online.
“With clear, effective communications, it can be positioned as one tool within a broader fraud-prevention toolkit. However, tackling fraud inevitably requires a collective effort across government, law enforcement, technology companies, financial services firms and consumers themselves,” Shand said.
“In supporting this focus on fighting financial crime, firms should continue to prioritize customer support and play an active role in educating and informing their customers. Where appropriate, signposting to the Firm Checker can complement broader engagement strategies.”
Fraud on the Rise
According to the FCA’s own figures, 800,000 individuals reported losing money to investment or pension‑related scams in the 12 months to May 2024. Most were tricked via social media (17%) or telephone-based scammers (17%), with 16% approached via text or messaging app.
Authorized push payment (APP) fraud is particularly popular with scammers. Related losses surged 12% year-on-year (YoY) in the first half of 2025, according to UK Finance.
It said investment scams were driving this trend. Losses in this category were up 55% annually and now account for 38% of APP fraud losses. The average loss in an investment scam is more than 20 times that of a purchase scam, which is the most common APP fraud in terms of case numbers.
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