Small Businesses are wide open to a
dangerous new form of identity fraud. Few safeguards are
in place to prevent criminals running up thousands of
pounds of debt in their name.
Company identity fraud costs businesses
£50m a year, according to new figures from the Metropolitan
Police and Companies House. But firms can now take steps
to stop organised criminal gangs from impersonating them
and leaving behind enormous unpaid bills.
Sophisticated criminals are exploiting
a loophole that allows them to file false documents with
Companies House to change a firm’s registered address
or its list of directors. The crooks then pose as the
targeted business to order goods such as cars, computers
and mobile phones, ruining the legitimate firm’s
credit and leaving the companies that supplied the items
out of pocket.
Scotland Yard and the Company Register
recently launched a joint initiative, Operation Sterling,
alerting businesses to the growth in this type of crime
and the need to monitor their filings with Company's House.
Detective Chief Inspector Stuart Dark of the Metropolitan
Police says: “Each time this type of fraud occurs,
the average cost is £2m. The disruption to cashflow
is enormous and can be very damaging to small firms.”
But small companies are not only at
risk of being impersonated – they can also lose
out if fraudsters posing as legitimate companies order
expansive goods for them.
To avoid this, firms are advised to
check a companies details thoroughly at Companies House
before delivering an order. If there has been a recent
change of address, it might be wise to contact the former
address or phone number to check that the company has
indeed moved.
Companies should also regularly check
contact details registered in their own name. They can
also sign up for a system that will alert directors if
details are amended and they may file documents electronically
to avoid bogus paper copies being accepted.
Source: www.thisismoney.co.uk
