Avoid the ‘new account’ fraudsters

In November 2008 the Business and Enterprise Committee made up of a number of MPs, published a report about Companies House.

Like many people, the MPs were taken aback to find that data filed there by companies, accountants etc was not checked and validated. A strong recommendation was made that Companies House should take urgent steps to explain to the public that it cannot guarantee the accuracy of the information it holds.

They stated “It is understandable- but wrong- that some users of its services assume that, because CH is an agency of government,its data can be relied upon to be authoritative- it cannot”.

Unfortunately fraudsters and criminals are well aware of the lack of validation at Companies House. They can easily file fictitious balance sheets,directorships, and registered office changes in order to fool the public and unsuspecting suppliers. Some credit agencies such as D&B, Experian and Graydon do run checks for fraud or unusual records at Companies house, but most other credit agencies don’t. Many just take Companies House data in good faith and add a credit rating to it.

You cannot rely upon this !!

Do your own background checks, have they got a website? Is the company mentioned on other peoples websites? Can you speak to a reliable reference who has dealt with the company?

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