FCA launches scam checker tool after 800,000 suspected to have lost money to fraudsters

Savers and investors are being urged to use a new tool to beat scammers after figures suggested close to a million people had pension and investment money stolen by fraudsters last year.

Around 800,000 people are suspected to have lost money to investment scams or pensions‑related fraud in the 12 months to May 2024, according to Financial Conduct Authority (FCA) research. The findings were extrapolated from a survey of 17,950 people, representative of all UK adults.

Investment fraud occurs when a criminal convinces their victim to move their money to a fictitious fund or to pay for a fake investment. For example, a fraudster may convince you of huge potential returns on your investment if you send them money. Victims lost millions more to investment fraud in 2024, despite the number of cases dropping.

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Pension fraud can also involve dodgy investments, like fake fine wine scams, as well as fake promises of being able to access your retirement fund before age 55.

In a bid to fight this prolific financial crime, the watchdog has launched a tool to help consumers avoid scams. It is called ‘Firm Checker’.

Savers and investors can use the tool to check if a firm is actually authorised and has the correct permissions to provide the services it is offering.

The FCA believes by using this tool people can significantly reduce their chances of falling victim to 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 pension and investment scammers operate

Fraudsters use both old and new technology to try to entice their victims to part with their money.

Those in the FCA survey who had experienced authorised push payment (APP) fraud – where a fraudster tricks a person into making a payment to a fraudulent account – or unauthorised consumer investments or pensions-related fraud, were most likely to have heard about it by seeing it promoted on social media (17%) or via a telephone call (17%).

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

Scammers can make it difficult for consumers to know if they are dealing with the real firm. In fact fraudsters have even been known to pretend to be the Financial Conduct Authority, targeting thousands of people and stealing from hundreds.

Famous people, like internet icon and Dragon’s Den star Steven Bartlett, are also regularly impersonated by scammers trying to steal money from their followers.

Before going ahead with a financial transaction like an investment or pension transfer, consumers are being warned to check if a financial services firm is authorised by the FCA for the services being offered – but people should also confirm that the contact details match those listed on the FCA Firm Checker.

The research also found consumers are taking some precautions to protect against fraud but there is room for improvement. Around three in four (72%) adults said they always or usually reject or ignore unsolicited calls, emails or text messages about investment or pension opportunities.

Six in 10 (60%) consumers reported that they always or usually verify the authenticity of emails, messages or calls before providing personal or financial information.

Despite this, more than £600 million was stolen by fraudsters in the first half of 2025, as scam cases surged across the UK, according to UK Finance.

From pensions fraud, investment scams to banking account theft – criminals pocketed £629 million from unsuspecting victims – a 3% rise on the same period in 2024. Meanwhile, there were over 2 million cases of fraud - a 17% hike from the first half of 2024.