FCA issues 38 warnings in a week over unauthorized firms

The U.K. Financial Conduct Authority posted 38 warnings this week about firms operating without authorization or impersonating regulated companies, and it urged consumers to check the regulator’s public warning list before using any financial service.

The alerts cover both unauthorized operators and so-called clone firms. Clone firms copy a legitimate firm’s name, address, registration number or other credentials to make consumers believe they are dealing with an authorized provider.

A consumer who looks up a firm on the FCA register may see the genuine company’s clean record and assume the contact is legitimate. Impostors then pressure consumers to transfer money or share personal information.

The FCA noted clone firms often make unsolicited contact by phone, email or social media and direct people to websites that closely resemble the legitimate firm’s site. Fraudsters can use official-looking documents, but the registration details are copied from the genuine firm rather than issued to the impostor.

The regulator maintains a searchable warning list on its website where people can search by firm name, individual name or reference number. The FCA wrote on social media that it had issued 38 warnings in the past seven days and urged people to “Protect yourself and find all recent warnings.”

Separately, the FCA has opened an investigation under the Competition Act 1998 into whether contract terms for PayPal’s digital wallet restrict competition and whether Mastercard and Visa have abused market dominance. The FCA and the Payment Systems Regulator published a joint report last year raising competition concerns around digital wallets. Data show card transactions using digital wallets rose from 8% to 29% in 2023.

The authority plans to use enforcement, supervision and competition powers to protect consumers and ensure fair markets. It asked anyone who suspects they have been contacted by an unauthorized firm to report it through the FCA website.