With the increasing prevalence of scams targeting businesses in the UK, it is essential to stay vigilant, especially when it comes to fraudulent schemes impersonating government entities such as Companies House.
Business owners often receive letters, emails, or calls that appear official but are scams designed to extract money or sensitive information. This guide will help you identify common Companies House scams, explain how to report them and offer practical advice on protecting your business from falling victim to fraudulent activity.
Common Types of Companies House Scams
Over the past few years, there has been an alarming rise in fraudulent activities aimed at UK businesses. Scammers have become increasingly sophisticated, often mimicking official Companies House communication styles to deceive business owners. Here are some common scams to be aware of:
- Companies House does not send payment demands for business registration or filing updates through the post.
- Official correspondence from Companies House will always include contact information and an official Companies House letterhead.
- Payments for any Companies House services are usually made online directly through their official website.
Key Warning Signs:
- Companies House emails will always come from an @companieshouse.gov.uk domain.
- They will never ask for payment information or sensitive personal details via email.
- Phishing emails may include urgent-sounding language, threatening legal action or penalties if you don’t respond immediately.
Key Warning Signs:
- Companies House does not make unsolicited calls asking for payment or personal information.
- Official communication about company registration issues will typically come via post or email, never by phone.
How to Identify a Scam
Scammers often go to great lengths to make their communications appear genuine. Here’s how you can spot and avoid falling for these scams:
- Check the Sender: Legitimate emails from Companies House will only come from addresses ending in @companieshouse.gov.uk. Suspicious email addresses or domains are a major red flag.
- Look for Official Logos and Branding: Fraudulent letters and emails may replicate Companies House branding, but often there will be subtle errors such as incorrect logos, grammar mistakes, or strange formatting.
- Confirm Payment Requests: Companies House does not send invoices for registration fees or filing penalties. If you receive a payment demand, it is likely a scam.
- Verify URLs: If an email asks you to click on a link, hover over the link to see where it will direct you. Fraudulent websites will often have strange or complex URLs. Official Companies House links will always direct to www.gov.uk.
How to Report Scams
If you suspect that you have received a fraudulent letter, email, or phone call, it is crucial to report it as soon as possible. Companies House has provided several ways to report these scams:
- Emails: Forward any suspicious emails to phishing@companieshouse.gov.uk.
- Letters: Send scanned copies of any fraudulent letters to enquiries@companieshouse.gov.uk.
- Phone Calls: If you receive a suspicious call, report it to the Action Fraud hotline or online service, which is the UK’s national reporting centre for fraud and cybercrime.
For more details on how to report scams, visit the official Companies House guidance.
Why Are Companies House Scams So Effective?
Scammers often use high-pressure tactics, such as warning of legal action, to create a sense of urgency that can lead business owners to act without proper verification.
According to Action Fraud, over £7 million was lost to business-related scams in the UK in 2022 alone, with many incidents involving phishing emails and fraudulent letters targeting companies.
Steps to Protect Your Business
Here are some proactive measures you can take to safeguard your business from falling victim to these scams:
- Educate Your Team: Ensure that your staff, especially those in finance or administrative roles, know about these scams and how to identify them.
- Regularly Monitor Communications: Be vigilant when opening emails or letters that seem unusual or suspicious, particularly those demanding payments or sensitive information.
- Verify Requests: If you receive any communication requesting payment, contact Companies House directly to verify its authenticity. Always use the official contact details found on their website.
- Enable Web Security: Employ spam filters and antivirus software to help detect and block phishing emails before they reach your inbox.
- Register for PROOF: Companies House offers a PROOF (Protected Online Filing) scheme, which prevents unauthorised paper submissions of certain documents, adding an extra layer of protection for your business.
What to Do if You Fall Victim to a Scam
If you suspect that you have responded to a scam or provided any personal or financial information, take immediate action:
- Contact Your Bank: Inform your bank or financial institution if you have shared any payment information.
- Report to Action Fraud: Visit Action Fraud to report the incident and receive advice on further steps.
- Monitor Accounts: Keep a close eye on your business accounts for any suspicious activity.
Final Thoughts
Scams targeting businesses are on the rise, and Companies House impersonation is a particularly dangerous one due to its official appearance. By staying informed and vigilant, you can protect your business from these fraudulent activities.
Glow Accounts provides comprehensive support to businesses, and we ensure that your financial practices are secure. Our team of professionals can guide you in managing any communications related to your business compliance.
Helping Safeguard Your Business Against Fraud
At Glow Accounts, we’re here to help protect your business. Our team of experienced accountants and bookkeepers ensure that all communications are legitimate and compliant with UK regulations.
Contact us today today to learn more about how we can help secure your business’s future or email us at info@glowaccounts.co.uk or call 01892 267 750.
Not a client yet but need advice?
No problem! At Glow Accounts, we believe in helping all businesses avoid falling victim to scams.
Reach out to us at info@glowaccounts.co.uk or call us on 01892 267 750. We’re here to provide the support and advice you need.
