The UK’s financial regulator has launched a new tool to help protect consumers from the surge in investment and pension scams, after an estimated 800,000 people reported losing money in the most recent year of available data.
The Financial Conduct Authority’s “Firm Checker” allows consumers to verify whether a company is authorised and properly licensed to offer financial services — a key safeguard as scammers increasingly disguise themselves as legitimate firms.
The FCA says most victims of fraud or unauthorised investment and pension schemes were first contacted through social media or phone calls, followed by text messages and WhatsApp outreach.
“Ruthless fraudsters are constantly evolving their tactics so they can steal money from innocent victims,” said Sheree Howard, the FCA’s executive director of authorisations. “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.”
Separate research from Barclays highlights another growing risk: the influence of social-media personalities promoting financial content. A survey of around 2,000 investors found:
-
24% feel pressured to act quickly on unsolicited tips from TikTok or Instagram “finfluencers”.
-
42% of those who acted on these tips say they lost money as a result.
-
53% of people who use social media for investment guidance don’t check whether the information is reliable.
-
Among Gen Z, 58% are more likely to follow influencers who appear wealthy or successful.
Barclays warned that while influencers can sometimes boost confidence among new investors, the aspirational lifestyles many promote can mislead people into believing they can achieve similar financial gains, even when the advice is unrealistic or risky.
Many respondents said emotions — especially greed and FOMO — were commonly exploited by finfluencers to encourage snap decisions.
Reflecting rising concerns, 61% of investors surveyed said they would support the creation of a verification system for financial influencers to help distinguish credible sources from unreliable ones.
