FCA Firm Checker: A New Tool to Help UK Consumers Avoid Financial Scams

The Financial Conduct Authority (FCA) has launched a new online tool, known as the FCA Firm Checker, designed to help consumers protect themselves against financial scams, particularly those involving fraudsters posing as legitimate firms.

Known as Firm Checker, the tool allows you to quickly check whether a financial firm is authorised by the FCA and whether it has the correct permissions to offer services such as investments, pensions, mortgages and insurance.

With financial scams becoming increasingly sophisticated, this FCA Firm Checker introduction is a timely and welcome development for UK consumers.

Why has the FCA launched Firm Checker?

Scammers are constantly adapting their tactics, making it harder than ever to tell whether a company is genuine.

Cold calls, social media adverts and professional-looking websites can all give the impression of legitimacy.

According to the FCA, up to 800,000 people may have lost money to pension or investment scams in the 12 months to May 2024.

Firm Checker has been introduced to help consumers carry out a basic background check before engaging with a financial firm, particularly when contact is unexpected or initiated online.

Through the FCA Firm Checker, they hope its widespread use will significantly reduce the number of people who fall victim to fraud and lose their hard-earned money.

What can the FCA Firm Checker do?

In the UK, most financial firms must be authorised or registered by the FCA.

Read the top 7 tips for choosing your cash savings account

Firm Checker enables you to search for a company and confirm two crucial points:

  • Whether the firm is authorised by the FCA
  • Whether it has permission to provide the specific financial services you are being offered

You can search using a range of details, including:

  • Firm name
  • Company number
  • Postcode
  • Website address
  • Firm Reference Number (FRN)

If a firm does not appear on Firm Checker, this may be a red flag.

It could indicate that the firm is unauthorised or offering services that the FCA does not regulate.

The FCA website also explains which activities it regulates and which it does not, which is worth checking using the FCA Firm Checker platform.

What about cloned firms?

Some fraudsters go a step further by cloning legitimate FCA-authorised firms, using similar names, branding or registration details to appear credible.

Firm Checker can help uncover this by showing whether a firm is genuinely authorised to offer the service being promoted.

It also lists firms that the FCA is aware of as unauthorised and potentially fraudulent.

For example, searching for a well-known brand such as HSBC produces multiple results, including firms clearly marked as unauthorised.

This highlights why it’s vital not just to recognise a brand name, but to verify the exact firm details.

The FCA also advises checking that contact details, such as phone numbers, email addresses and websites, match those listed on Firm Checker, as cloned firms often use different contact information.

What Firm Checker can’t do

While Firm Checker is a valuable resource, it does have limitations. It cannot:

  • Confirm whether the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS) will definitely apply
  • Display full regulatory history, such as historic fines, restrictions (including crypto-related restrictions), or a firm’s ability to handle client money
  • Show details of individuals connected to the firm (this information is available on the full Financial Services Register)
  • Display information about unregulated financial products
  • Guarantee fully up-to-date information, as some updates can take up to 24 hours, and firms themselves supply some data through the FCA Firm Checker

For more detailed information, consumers should always refer to the Financial Services Register.

How to stay safe from financial scams

Firm Checker should be used as part of a wider approach to protecting yourself from fraud. Sensible steps include:

  • Being cautious of unsolicited contact about investments or pensions
  • Never sharing personal or financial information without verifying the source
  • Checking emails, messages and phone calls carefully before responding
  • Carrying out your own research to ensure a product or service meets your needs

Staying informed is also key. Scam alert services and consumer awareness campaigns continue to play an important role in helping people avoid costly mistakes.

Final thought
If something feels rushed, unexpected or “too good to be true”, pause and check whether the FCA Firm Checker thinks it’s safe.

Taking a few minutes to use the FCA Firm Checker could save you from significant financial loss.