Companies House Cloning Scam
Artificial intelligence (AI) scams and identity thefts are becoming an ever growing problem. There has been a recent increase in companies and restaurants being cloned. This comes from a recently uncovered scam by a BBC investigation, which involves the way Limited companies can be set up.
To set up and run a Limited company in the UK, you firstly need to provide Companies House with a few details. Usually this can be done within a 24 hour time frame.
The backlash of this has caused Companies House to rethink their application process and rightly so. This is due to the fact that when you set up a Limited company you only need to provide ‘at least three pieces of personal information about yourself and your shareholder or guarantors’. Scammers have been managing to find and provide directors names from their online profiles and data leaks.
These scammers have been tweaking restaurant names to catch people out. A couple of scam companies include:
- ‘Dinner By Heston Blumenthall’ contains an extra ‘l’ at the end.
- The Italian restaurant chain Zizzi in Cambridge was created as ‘Zizzi – Caambridge’.
Graham Barrow (a fraud expert) said that Companies House is “not fit for purpose” and should carry out more checks.
After the names have been cloned and these fake companies have been set up, scammers have been able to setup and steal overdraft money from bank accounts and order high value goods from suppliers. These suppliers have been tricked into delivering goods and being left with unpaid invoices.
Companies House has issued an apology to all of the real companies who have, and are currently suffering with the aftermath of these scammers actions. A spokesperson from Companies House has said:-
“In the longer term we will be requiring company directors and people who file information to verify their identity to ensure they are who they say they are.”
They concluded that:-
“These changes will enable us to crack down on the use of false addresses and other misuse of the register.”
HM Revenue and Customs (HMRC)
HMRC on the other hand have recently updated their guidance and are helping people to know how to identify tax scams made by phone, email, or text.
How to spot a HMRC scam
HMRC have advised that if you receive a phone call, email, or text message which claims to be from HMRC, it is likely to be fake if it:
- Rushes you
- Threaten you
- Is unexpected
- Asks for personal information, such as bank details
- Tells you to transfer money; or
- Offers a refund, tax rebate or grant.
HMRC goes on to confirm what they will and won’t do if they contact you.
By Phone:
HMRC will never threaten arrest or leave a voicemail threatening legal action.
By Text:
HMRC do send text messages which may include a link to GOV.UK information, or HMRC webchat. Although they will never ask for personal, or financial information. So, a text message that offers a tax refund in exchange for personal or financial details will not be from them.
By WhatsApp:
If you have subscribed to the UK Government Channel, you may receive occasional tax-related reminders, but you will not be able to reply. HMRC does not otherwise use WhatsApp to communicate with taxpayers.
HMRC does use QR codes in their letters to take you to guidance on GOV.UK, but they confirm that you would never be taken to a page that requires you to provide personal information.
QR codes might also be used after you have already logged in to redirect you to, say, your bank login page.
If you are unsure on anything you have received from HMRC, please let us know or give us a call 01733371180.