A small but growing number of customers, according to Companies House, are finding themselves at risk of “company hijack”.
Such a hijack was reported by investigator Barry Schofield in a letter in our February print issue.
Companies House has introduced two new electronic services to help companies avoid fraud. This happens when a criminal forges a document changing the address of a company to one that they control. They may then use this “stolen” company to order goods and services, trading off the company’s creditworthiness. PROOF (PROtected Online Filing) was introduced on 17 January to provide added security for companies filing documents with Companies House. If a company decides to sign up to PROOF Companies House will accept specific statutory forms in electronic format only, and will refuse any paper submissions of the form. PROOF is available to any customer who has signed up to file information with Companies House electronically. Companies House have also enhanced the Monitor service, making it available electronically to Companies House Direct (CHD) subscribers. Monitor allows customers to keep an eye on a number of companies and ‘monitor’ which documents they file with Companies House. The Monitor service helps to combat fraud by alerting companies to any unauthorised changes to a company record. Customers can also use it to keep up to date on suppliers, customers or competitors.
What they say
Tom Smith, Director of Customer Delivery said:
"This kind of fraud is still rare, but it is growing. That is why we are offering our customers a simple three-step plan to protect themselves. Firstly, sign up to send us your information electronically – it’s quicker, cheaper and safer. Secondly, use PROOF to stop a fraudster sending us forged pieces of paper. Thirdly, use MONITOR to double check that the information we hold about you is what it should be. You buy a lot of protection for very little money."
About Companies House
It is the DTI agency with responsibility for the incorporation and dissolution of companies; for the registration of information supplied by them under the Companies Act and related legislation, and for making this information available to the public.
