After 800,000 people are thought to have lost money to scammers, the FCA releases a scam checker tool

The tool allows investors and savers to verify whether a company is the "real deal" and has the necessary authorization to offer the services

Following reports that nearly a million people had their investment and pension funds stolen by scammers last year, savers and investors are being urged to use a new tool to combat con artists.

According to research by the Financial Conduct Authority (FCA), approximately 800,000 people are thought to have lost money as a result of pension-related fraud or investment scams in the year ending in May 2024. The results were derived from a survey of 17,950 individuals, who are representative of all adults in the United Kingdom.

When a criminal persuades their victim to transfer their funds to a fictional fund or to pay for a fraudulent investment, this is known as investment fraud. For instance, a con artist might persuade you to send them money in exchange for enormous potential returns on your investment. Investment fraud victims lost millions more in 2024, even though the number of cases decreased.

In addition to shady investments, such as fraudulent fine wine schemes, pension fraud can also involve false assurances that you will be able to access your retirement funds prior to turning 55.

The watchdog has introduced a tool to help consumers avoid scams in an effort to combat this widespread financial crime. It's known as Firm Checker.

The tool can be used by investors and savers to verify whether a company is truly authorized and has the right permissions to offer the services it is.

According to the FCA, people can greatly lower their risk of becoming victims of fraud by utilizing this tool.

"Ruthless fraudsters are constantly evolving their tactics so they can steal money from innocent victims," stated Sheree Howard, executive director of authorizations at the FCA.

"Use Firm Checker to verify the firm's authorization and assist in combating financial crime, whether you're thinking about a loan, investment, pension opportunity, or other financial service. A "

The methods used by investment and pension fraudsters.

Fraudsters attempt to persuade their victims to give up their money by using both modern and antiquated technology.

The most common ways that participants in the FCA survey learned about authorized push payment (APP) fraudin which a fraudster deceives a person into making a payment to a fraudulent account, unauthorized consumer investments, or pension-related fraudwere through phone calls (17%) or social media promotions (17%).

16% of respondents were first contacted through text messaging, WhatsApp, or another messaging app.

Customers may find it challenging to determine whether they are working with the legitimate company due to scammers. Fraudsters have even been known to pose as the Financial Conduct Authority in order to steal from hundreds of people while targeting thousands.

Scammers frequently pose as well-known individuals, such as Dragons Den star and internet icon Steven Bartlett, in an attempt to defraud their fans.

Consumers are advised to verify whether a financial services company is authorized by the FCA for the services being provided before proceeding with a financial transaction, such as an investment or pension transfer, but they should also make sure that the contact details match those on the FCA Firm Checker.

Additionally, the study discovered that although consumers are taking some precautions to guard against fraud, they could do better. Approximately three out of four adults (72%) reported that they typically ignore or reject unsolicited calls, emails, or texts regarding pension or investment opportunities.

Before divulging personal or financial information, six out of ten (60%) consumers said they always or typically check the legitimacy of emails, messages, or phone calls.

Despite this, fraudsters stole over 600 million in the first half of 2025 as scam cases increased nationwide, according to UK Finance.

Criminals stole 629 million from gullible victims through bank account theft, investment scams, and pension frauda 3% increase from the same period in 2024. Over 2 million fraud cases were reported in the interim, a 17% increase from the first half of 2024.