The Times quotes Hamish Perry on identity fraud on Companies House
As highlighted by The Sunday Times, identity fraud through Companies House has become a significant issue. The ease of registering a company—requiring just £50 and 24 hours—makes it a prime target for scammers. This type of fraud can lead to severe consequences, including financial liabilities and penalties for unsuspecting victims.
Until last year Companies House had limited powers to question or remove inaccurate information from the register. And if you had been listed as a person with significant control, Companies House could only remove your name if they received a court order, which could cost £300.
From the autumn, it is also set to introduce mandatory identity checks for people trying to create companies, and for those already listed on the database. Existing directors and people with significant control, which Companies House estimated to be in the region of six million people, will have a year to verify their identities.
Hamish Perry, Partner in our Corporate team shares his thoughts with The Times:
It should soon be much harder for a person’s name to be stolen, and the fraud would need to be much more sophisticated, because someone using another’s name would need all of that person’s ID documents to be registered.
Read the full piece in The Times (subscription required).
