Many high-street restaurants, owned by celebrity chefs like Heston Blumenthal, have been registered under false names in Company House, the UK’s official company directory.
Fraudsters in the identity cloning scam fabricated 750 companies with uncanny names to real firms. Companies House has announced it is investigating the fraudulent companies, and fraud expert Graham Barrow, quoted in a BBC report, said the scam would be most panicking the famous people and genuine businesses caught up in this scam.
With limited verification checks, companies can be approved within a 24 hour period and begin in theory operating straight away and ordering stock from suppliers. Companies House is currently carrying out checks that are not “fit-for-purpose” to verify proper businesses, leading to more illegal activities which could be prevented. For example, once accepted, fraudsters can steal overdraft funds from the false business account they have set up and order huge amounts of stock from their suppliers without paying invoices.
These consequences highlight the need for businesses to install robust verification and biometric technology to counteract fraud. Meanwhile, individuals should ensure they can present valid physical and digital ID documents for verification purposes.
