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Companies House Ill-Equipped to Fight ID Theft
Small businesses are being warned by the
Federation of Small Businesses (FSB) that a
growing number are falling victim to
corporate identity theft. In a letter to the
Registrar of Companies the FSB have
complained that Companies House is not
properly equipped to deal with the problems.
 The
crimes follow a similar pattern. Gangs
“hijack” details of registered companies by
filling in fake documents with Companies
House. They then impersonate the companies,
using their details to order goods. The
first thing the genuine business owner
normally knows about it is when the bills
for the goods land on their doorstep.
Companies House has already increased
security by introducing an electronic filing
system, as well as notification alerts when
details are changed; however, the FSB say
that the system is still fundamentally
flawed. Companies House is failing to check
documents to protect businesses; and if a
fraud takes place, businesses have to get a
legal judgement to remove the fraudulent
information.
FSB member David Waterman, managing director
of I Waterman Box Makers, a family-owned
packaging manufacturer from London, is one
of a growing number of victims of company
identity fraud. He explains what happened:
“Someone filed a fraudulent form at
Companies House changing the registered
address of our company from Whitechapel to
another location. They even had the
audacity to steal the nameplate from the
front of our building.
“Our company is now faced with a significant
legal bill to have the incorrect address
removed from the Companies House records.
“It is unfortunate that Companies House,
under the authority of the Companies Act, is
compelled to register any properly completed
form which is presented for filing.
Companies House is the centre of the
country’s commercial world and it must be
enabled to protect firms from the threat of
identity theft.”
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