The Financial Conduct Authority (FCA) has taken decisive action against financial fraud in a major push to crack down on financial crime and poor practices, the FCA used data and tech-driven enforcement to remove over 1,600 illegal or unauthorised websites in 2024 alone. These websites were promoting financial services without FCA permission posing serious risks to both consumers and legitimate businesses.

Why This Matters

Financial scams are becoming increasingly sophisticated, often masquerading as legitimate investment opportunities or financial services. These fraudulent websites can lead to substantial financial losses and erode trust in the financial sector. The FCA’s proactive approach aims to dismantle these operations and prevent further harm to consumers.

Key Takeaways

• Consumer Protection: The FCA’s actions are designed to safeguard consumers from fraudulent schemes that can result in significant financial loss.
• Market Integrity: By removing these deceptive websites, the FCA helps ensure that the financial market operates fairly and transparently.
• Tackling Social Media Risks: “Finfluencers” under fire. The FCA took action against unauthorised financial influencers, issuing 38 alerts and interviewing 20 under caution for illegal promotion.
• Raising Standards: 50+ fake finance apps taken down from Google Play and the App Store through collaboration with big tech.
• 20,000 non-compliant financial promotions amended or withdrawn up from under 600 in 2021.
• 1,600+ scam websites removed, suspended, or blocked due to FCA action.
• 1,500+ firm authorisations cancelled a 20% increase from 2023.

What You Can Do

• Stay Informed: Regularly check the FCA’s Warning List to identify unauthorised firms and individuals.
• Verify Before You Invest: Always ensure that any financial service provider is authorised by the FCA. You can use the FCA Register for verification.
• Report Suspicious Activity: If you encounter a website or service that seems fraudulent, report it to the FCA to aid in their enforcement efforts.

The FCA’s recent actions demonstrate a robust commitment to combating financial crime and protecting consumers. By staying vigilant and informed, you can help safeguard your financial well-being and contribute to a more secure financial environment.