The Financial Conduct Authority (FCA) has launched a new firm-checker tool to help consumers avoid scams, after its research found that around 800,000 people reported losing money to investments or pensions‑related scams in the 12 months to May 2024. 

The research showed that those who had experienced any authorised push payment (APP) fraud or unauthorised consumer investments or pensions-related fraud were most likely to have heard about it by seeing it promoted on social media (17 per cent) or via a telephone call (17 per cent).

Meanwhile, 16 per cent were initially approached via text message, WhatsApp or another messaging service.

Consumers are taking some precautions to protect themselves, as nearly three quarters (72 per cent) of adults said they always or usually reject or ignore unsolicited calls, emails or text messages about investment or pension opportunities.

In addition to this, 60 per cent of consumers said that they always or usually verify the authenticity of emails, messages or calls before providing personal or financial information.

However, the FCA emphasised that there is room for improvement, warning that scammers often make it difficult for consumers to know if they are dealing with the real firm.

The FCA's new tool is therefore intended to enable individuals to confirm if a firm is authorised and has the correct permissions to provide services, to help people to reduce their chances of falling victim to fraud. 

FCA executive director of authorisation, Sheree Howard, 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."

The launch of the tool was also welcomed by The Pensions Regulator (TPR), with executive director of the enforcement and legal group, Gaucho Rasmussen, emphasising that "prevention is key in the fight against scammers".

"That’s why we and the Pension Scam Action Group urge pensions savers to use the FCA’s new Firm-Checker tool," he stated.  

"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!”

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