New fraud checker tool launched after 800,000 people fell victim to scammers

A new online tool has been launched to help the public check the credibility of companies after 800,000 people fell victim to them. fraudsters In just one year.

Financial Conduct Authority (FCA) is urging consumers to use its firm checker tool, available at websitebefore they even consider handing over the money to the firms.

It comes as more than three-quarters of people have reported losing money to investment-related scams pension Between May 2023 and May 2024.

The FCA said there has been a significant increase in financial scams on social media platforms, including impersonations of famous personalities or companies, products being offered by individuals or firms that are not regulated or simply being offered by fraudulent organisations.

The FCA said that while using the tool “will not remove all risk, using an authorized firm with the correct permissions will significantly reduce your risk of loss”. All companies operating financial products or services in the UK must be licensed and regulated by the FCA.

Sherry Howard, executive director of the authority at the FCA, said: “Cruel fraudsters are constantly evolving their tactics to 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 authorized and help fight financial crime.”

Pat Hurley, director of the free consumer service Financial Ombudsman Service (FOS), said: “Being a victim of a Danger Or a scam can be very distressing, and sadly for many people the financial impacts can be life-changing. The Financial Ombudsman Service continues to receive hundreds of cases every week from victims of fraud and scams.

“If asked to transfer money to a financial services provider – especially if relating to investments or pensions – check that the firm is authorized using the FCA Firm Checker and consider seeking independent financial advice.”

Gaucho Rasmussen, executive director of the organization that leads the Pension Scams Action Group (PSAG), said: “Pension fraud can be devastating, and prevention is key in the fight against scammers. That’s why we and PSAG urge pension savers to use the FCA’s new tool. Always check who you’re dealing with before making any decisions about your pension – even if the contact is from an organization you’d trust. Are.

“No reputable company will suddenly contact you – stop, think and check!”