The FCA intervened to amend or withdraw 4,151 financial promotions in the period between July and September, the highest figure since the regulator started publishing the data.

Retail lending, investments and banking are the sectors with the highest rate of amends to or withdrawal of adverts and amount to 95% of the FCA’s interventions with authorised firms so far.

The regulator highlighted that it had seen several cases involving unauthorised firms and individuals seeking to take advantage of the rising cost of living. During the period, the FCA issued 303 warnings about unauthorised firms and individuals, with over 20% of these about clone scams.

The figures also detailed various action taken by the FCA to curb misleading and unfair behaviour by firms as well as tackling scammers. For example, the FCA’s intervention resulted in 66 Buy Now Pay Later (BNPL) promotions from one firm across various social media platforms being amended or withdrawn. It said the adverts “did not give fair or prominent risk warnings” and were misleading about fees.

“As consumers feel the financial squeeze, they could be tempted by high risk, unregulated products and services or they could become a target for scammers preying on moments of vulnerability,” said executive director of enforcement and market oversight at the FCA, Mark Steward. 

“As a result, we’re doing even more to tackle false claims in adverts, issue prompt warnings to consumers, and we continue to engage with the largest tech and social media platforms as they also play an important part in protecting consumers from online harm. This is why changes to the Online Safety Bill to cover paid-for financial services advertising online are very much needed right now.”

Head of retirement policy at AJ Bell, Tom Selby, added: “There has also been a significant rise in the number of people in financial difficulty, with 4.2 million people missing domestic bills, up from 3.8 million in 2020.

“Such an environment is a scammer’s paradise, so you need to be on your guard when financial offers, particularly those which seem too good to be true, come out of nowhere from someone who is not regulated.

“It is positive that the regulator is clamping down on dodgy adverts, but the scale of the financial universe and the fact many of the most dangerous firms are not regulated means individuals need to arm themselves to avoid becoming a victim of financial fraud.

“With the Bank of England issuing a dire economic warning yesterday, it is more important than ever that the Government does all it can to protect people from scams.”

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