The City regulator has launched a “firm checker” tool to help prevent people from losing money to fraudsters.

The Financial Conduct Authority (FCA) said that around 800,000 people reported losing money to investments or pensions‑related scams in the 12 months to May 2024.

The FCA has launched the tool on its website at www.fca.org.uk/consumers/fca-firm-checker.

It said that by using the tool and checking if a firm is authorised and has the correct permissions to provide services, people can significantly reduce their chances of falling victim to fraud.

In addition to checking if a financial services firm is authorised by the FCA for the services being offered, people should also confirm that the contact details match those listed on the FCA firm checker, the regulator said.

It added that social media, texts and phone calls are common places for bank transfer scams, unauthorised consumer investments or pensions-related fraud to start.

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.”

The FCA said research indicates that around three-quarters of adults always or usually reject or ignore unsolicited calls, emails or text messages about investment or pension opportunities.

The regulator said the Financial Services Register remains in place as the full regulatory record of the authorised financial services.

On Monday, the FCA set out changes to help increase consumer access to investments and help them take informed risks, which could see a shift away from the “your capital is at risk” blanket warnings on products.

The regulator is proposing new rules for product information on investments, while also drawing a more distinct line between retail and professional investors who may not need to come within the scope of retail regulations.

The steps are part of wider efforts to encourage investors away from just investing in cash.

The plans also align with the Government’s aim to build a retail investment culture in the UK.

The Government announced in the Budget that the annual adult cash Isa subscription limit will be reduced to £12,000 from April 2027.

The annual overall contribution limit into adult Isas will remain at £20,000, potentially encouraging some savers who reach the £12,000 cash Isa limit to put more money in stocks and shares. Over-65s will retain the full £20,000 annual cash Isa allowance.

HM Revenue and Customs (HMRC) guidance has also set out new rules to be introduced to prevent people from getting around the new limit, including charges on interest paid on cash held in stocks and shares Isas and tests to determine whether money is being held in “cash-like” accounts.

Pat Hurley, ombudsman director at the Financial Ombudsman Service (FOS), said: “Being the victim of a fraud or scam can be deeply distressing, and sadly for many people the financial implications can be life changing. The Financial Ombudsman Service continues to receive hundreds of cases a week from people who have been victims of fraud and scams.

“If asked to transfer money to a financial services provider – particularly if investment or pensions related – check the firm is authorised using the FCA firm checker and consider seeking independent financial advice.

“The Financial Ombudsman Service is free for consumers and, if you think you have been treated unfairly by your bank, you should complain to the business first and then get in contact with our service, and we’ll see if we can help.”