There have been 5,000 reports of fake scams in the first six months of 2025
Fake FCA scams have caused 480 victims to lose money and data. Reported by the FCA themselves, fraudsters have been posing as FCA regulators to steal the bank accounts, password and PINs of vulnerable individuals. Scams of this type have been reported 5,000 times, with 66% of reports coming form people aged over 56 years old. Your business and your staff members could be at risk.
Although most victims of the scam are consumers, the FCA regularly interacts with businesses. Individuals in your business could be convinced by the scam artists to hand over business password and bank details, or directly pay for false fines. Business that have had recent interaction with the FCA or are currently going through a court process are more at risk.
The FCA’s purpose is to set standards for financial firms, and their application costs annual fees. Whether it’s helping with business plans, provide clarity on business practices, granting authorisation or taking action against misconduct – the FCA have direct contact with 42,000 businesses. Businesses, such as Monzo and Barclays, have been fined for regulatory breeches, paying millions to the FCA which is funnelled into the UK Consolidated Fund – however small firms have also been fined and suspended. The FCA historically do not call individuals, or call unexpectedly.
The FCA have commented that they will never ask for sensitive banking information or for customers to transfer money. The only time the FCA may contact an individual would be for help in a financial crime, or victims of a financial crime – therefore banking information such as passwords should not be necessary.
So why is the scam finding so much success?
What is the new FCA scam?
The scam can transpire through emails, letters, texts, or most frequently, phone calls. The fraudster will say they are from the FCA and try to garner information as well as the trust of the recipient.
One method involves the scammer claiming the FCA has acquired funds from a crypto wallet which was opened under the receiver’s name. They would then need the bank details of the victim in order to fully recover the funds – when in actuality they are stealing money and banking information.
Also, another scam involves exploiting vulnerable individuals who have already fallen victim to loan scams, emailing them on behalf of the FCA, and promising assistance. By pretending to recover lost money, they gain trust and request banking details and further funds.
Another method involves emails, with fraudsters claiming the FCA have taken out a court judgement against the victim and therefore they need to pay the imaginary fine that is owed.
Because the FCA is such a serious and authoritative organisation, fraudsters are able to press on the weaknesses of individuals in order to gain sensitive information. Fines and charges are scary, and the threat of them building up is worrying; many individuals are not as scam aware, including the more vulnerable older generations. By exploiting the weak knowledge in what the FCA does and how they operate, scammers have been able to find success. It’s imperative businesses make individuals aware of these fraudsters and how to spot the scams.
How to spot a fake FCA communication
Employees and managers need to be able to spot scams and fraudster pretending to be FCA agents; for the benefit of the business and their personal finances. Some key signs that indicate a FCA email letter or phone call may be a scam include:
- Phone calls coming from an international number.
- Email address coming from a personal account – such as Gmail, Hotmail, or Outlook.
- Look out for any spelling mistakes or poor grammar which would indicate a scam.
- Review any web addresses or social media accounts that make contact or that you are directed towards. These may contain small changes from the FCAs genuine sites, even perhaps as small as containing extra punctuation.
The genuine FCA website is addressed: https://www.fca.org.uk/ . And the FCA on facebook is known under Facbook.com/FCAFinancialConductAuthority. The FCA also have a primary Facebook account used to warn consumers about financial scams, which is under facebook.com/FCAScamSmart.
Scams, Phishing attempts and Cyber Attacks
Cyber attacks and scams are the biggest threat to businesses as 73% of business leaders now believe that a cyber incident will impact their business within the next two years, as reported by RICS. Phishing attempts, malware, and exploiting outdated programmes are the most prevalent attacks. Businesses need to be aware of the dangers, and how to defend against the risks.
Training, control measures and regular updates are the best defence against scams and cyber phishing. Cyber insurance is essential for businesses to financially recover from a phishing attack, including the consequential legal costs and business interruption.
Read our cyber insurance whitepaper to learn more about effectively defending against scams and the dangers posed by fraudsters and cyber criminals.
