Companies House reveals new powers to stop scammers stealing names and addresses

06 March 2024 , 09:50

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Companies House has announced new powers to clamp down on scammers (Image: No credit)

Companies House is clamping down on scammers who steal people's names and addresses.

They're bringing in new rules to stop fraudsters from making fake companies in one of the most significant changes in its 180 year history. Before, people could use a PO Box when they set up a company. But this opened the door for fraudsters to use other people's details without them knowing.

Louise Smyth, who runs Companies House, said: "We've known for some time that criminals have misused UK companies to commit fraud, money laundering and other forms of economic crime. As we start to crack down on abuse of the register, we are prioritising cases where people's names and addresses have been used without their consent."

Now, it will be faster and easier to spot if a fraudster has stolen someone's details. Banks in the UK have also been been on alert with reports of a surge in scams. They have been asked to be vigiliant about filings related to debt settlements.

The Economic Crime and Corporate Transparency Act is bringing in new changes for Companies House, which will include stronger checks on company names and more power to tackle and remove wrong information. All companies will now have to provide a registered email address and confirm that they're setting up a firm for a "lawful purpose".

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New laws and penalties have been introduced for those who don't follow the rules. Transparency International UK, one of the campaign groups, has been pushing for changes at Companies House. They've pointed out hundreds of "shell companies" on the register that have been involved in corruption and money-laundering worth billions of pounds.

They've also asked the Government to raise company registration fees, which they say are too low and don't allow enough resources to fight economic crime. But from May 1, it will cost at least £50 to register a company in the UK due to changes in fees. Business minister Kevin Hollinrake said these new powers will stop the UK from being a haven for scammers around the world.

He said: "The new reforms, which come into effect today, provide further protection to the public from companies fraudulently using their address and will begin to remove the smoke and mirrors around companies hiding behind false information. This will enhance the UK's reputation as a great and safe place to do business."

Lawrence Matheson