FCA Firm Checker: A New Layer of Defence Against Broker Impersonation Scams
The UK is facing an escalating wave of financial fraud, with nearly 800,000 people suspected to have lost money to investment and pension-related scams in the 12 months to May 2024. These findings, based on research by the Financial Conduct Authority (FCA), highlight how deeply scams have penetrated everyday saving and investing activities. Despite rising awareness, criminals continue to exploit trust, urgency, and the promise of “easy returns” to drain victims’ funds.
The FCA’s New Weapon: Firm Checker
To counter this threat, the FCA has launched Firm Checker, a tool designed to help savers and investors verify whether a firm is genuinely authorised and has the correct permissions to offer financial services. The regulator believes this simple step can drastically reduce scam success rates. According to the FCA, many fraud cases occur not because people fail to research investments, but because scammers convincingly impersonate legitimate firms.
Source: Financial Conduct Authority (FCA)
How Scammers Reach Their Victims Today
Fraudsters are no longer relying on a single channel. FCA research shows that victims were most commonly first approached through:
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Social media promotions (17%)
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Cold phone calls (17%)
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Text messages, WhatsApp, or other messaging apps (16%)
In some cases, criminals have gone as far as impersonating the FCA itself or well-known public figures to appear credible. This tactic is especially familiar in Forex, copy trading, and fintech, where brand recognition and online visibility are often mistaken for legitimacy.
Why This Matters to Forex and Copy Traders
Forex traders and copy trading users are particularly exposed. Scam brokers, “clone firms,” and fake signal providers often:
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Use the names or registration numbers of real FCA-authorised firms
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Promise fixed monthly returns or “risk-free” strategies
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Push victims to act quickly to avoid “missing out”
For traders, checking authorisation is not just a compliance step — it is capital protection. Verifying that a broker or platform is the real entity listed on Firm Checker can be the difference between growing an account and losing it overnight.
This is no longer something to take easy on. Over £629 million was stolen in the first half of 2025 alone, a 3% increase year-on-year, with more than 2 million fraud cases recorded. The scale of loss shows that awareness without verification is not enough.
Before making any financial transaction, the FCA strongly advises:
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Confirm the firm is authorised using FCA Firm Checker
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Match contact details exactly with those on the official register
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Be sceptical of guarantees, urgency, or pressure tactics
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Pause before acting — legitimate firms do not rush decisions
These steps are especially critical in fast-moving markets like Forex and crypto-adjacent fintech services, where scams evolve as quickly as the technology itself.
The launch of Firm Checker is a timely reminder that fraud prevention starts with verification. In an era where scams look increasingly professional and convincing, trust alone is no longer enough. Whether you are a saver, long-term investor, or active trader, the responsibility to check before you invest has never been more important.
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