Avoiding corporate identity theft
Without a great deal of difficulty anyone can freely obtain Company details from Companies House and using the information so obtained can steal the identity of a Company and this is known as the "Form 287 Scam".
The identity is stolen quite simply by the fraudster lodging new forms, changing the registered office of the Company and the Officers. Once the fraudulent forms have been lodged it is possible for the fraudster to empty bank accounts, obtain goods or services that are never paid for and indeed dispose of the assets of the Company. The real Directors may not ascertain what is happening until it is too late.
It is not necessary to file with any forms the resolutions which give effect to the changes. All documents lodged for registration are accepted by Companies House in good faith and there is no obligation upon Companies House to verify the accuracy or the truth of any documents filed. The simple filing of the fraudulent forms does not of itself validly change the registered office or the officers but, coupled with a Certificate of Good Standing issued by Companies House which certifies the accuracy of the information filed, even though it may be fraudulent, and the confirmation that no action has been taken to dissolve the Company, anyone dealing with the Company is entitled to assume that the changes have been validly made and that the fraudster has the appropriate authority to bind the Company.
In an effort to prevent corporate identity theft Companies House has introduced two safeguard systems, the first called "Monitor" which enables companies at a cost to be notified by e-mail of documents filed so they can take the appropriate action necessary in the case of fraud and the second being called "Proof" which enables Companies House only to accept forms for filing upon production of passwords, confidential authentication codes and registered e-mail addresses.
The only other option available to a Company is to check the information lodged at Companies House on a regular basis.
If you would like advice on any company/commercial issues, please do not hesitate to contact Terry Chandler on 020 7623 9490 or by email to chandlert@s-yj.co.uk
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