FCA Launches Firm Checker to Strengthen Consumer Protection Against Scams

The Financial Conduct Authority has introduced Firm Checker, a new consumer-facing verification tool designed to curb the rising scale of investment and pensions-related scams. With FCA research indicating that around 800,000 people reported losses to scams in the 12 months to May 2024, the launch represents a significant escalation in the regulator’s strategy to shield consumers from sophisticated fraud tactics.

Firm Checker enables users to confirm whether a financial services firm is authorised and holds the appropriate permissions, reducing the risk of engaging with clone firms or unauthorised operators. This is particularly pertinent given that fraud victims most commonly encountered scams through social media promotions or unsolicited telephone calls, with messaging services such as WhatsApp also serving as key channels for initial contact. By cross-checking a firm’s authorisation status and verifying contact details directly against the FCA’s records, consumers can substantially lower the likelihood of falling victim to impersonation schemes.

The FCA’s findings point to a persistent gap between awareness and action. While three-quarters of adults routinely reject unsolicited investment approaches, only six in ten consistently verify the legitimacy of communications before sharing personal or financial details. Firm Checker has been specifically designed and tested with consumer usability in mind, positioning it as a practical tool for strengthening that behavioural resilience. The Financial Services Register remains the comprehensive regulatory record, but Firm Checker offers a streamlined, consumer-friendly gateway for quick verification.

The FCA emphasises that using authorised firms offers wider protections, including access to the Financial Ombudsman Service and potential cover from the Financial Services Compensation Scheme. As scammers continue to refine their methods, the regulator is enhancing digital safeguards and exploring further improvements to ensure clarity and ease of use across its ecosystem. Firm Checker therefore forms a central component of a broader regulatory effort to enhance market integrity and protect consumers from evolving financial crime threats.

Read the press release here.