FCA announces data-led approach to tackling online scams faster

The Financial Conduct Authority (FCA) announced on 23 June 2022 that it is using data to tackle online fraud faster by scanning approximately 100,000 websites created every day to identify those that appear to be scams¹. Where it identifies fraudulent websites, the FCA is proactive in requesting the website host shut them down, though it does not have the powers to force them to¹.

Between May 2021 and April 2022, the FCA added 1,966 possible scams to its consumer warning list, over a third more than during the same period the previous year¹. The website scanning forms part of an update on the FCA's data strategy, which the Finance & Leasing Association describes as helping to identify and prevent harm sooner¹. The data strategy also underpins the FCA's recent three-year strategy to reduce and prevent serious harm, set higher standards and promote competition¹.

Separately, following Russia's invasion of Ukraine, the FCA has developed and implemented a sanctions screening tool to support the monitoring of the effectiveness of a firm's controls in identifying organisations or individuals that have been sanctioned¹.

The FCA's own press release and the full data strategy update are referenced by the Finance & Leasing Association but not reproduced in its account¹. No further detail on how the scanning works, which website hosts are involved, or how many sites have been taken down has been reported¹.

Why it matters for households

The warning list is the practical point of contact for consumers: 1,966 possible scams were added to it between May 2021 and April 2022, a rise of more than a third on the same period the year before¹. Anyone checking whether a firm or website is authorised before dealing with it is looking at a list that is growing faster than it was¹.

The FCA's power over fraudulent websites is limited to asking the host to remove them; it cannot compel removal¹. That means a site identified as an apparent scam may stay online after the request is made¹. The sanctions screening tool concerns firms' own controls for identifying sanctioned organisations or individuals, rather than a direct consumer-facing change¹.

What happens next

No timetable for further action, and no target for the number of websites scanned or removed, has been reported¹. The FCA's data strategy sits alongside its three-year strategy to reduce and prevent serious harm, set higher standards and promote competition, which is already running¹. Consumers can check the FCA's role and powers and read guidance on fake websites and online shopping scams and the wider scams and fraud guide.