A warning has been issued to directors by Companies House following the implementation of the identity verification process.
Companies House has identified an increased risk in scams that seek to exploit uncertainty and fear in directors who may be unsure enough about the official process that they trust unverified requests for information.
The identity verification system is designed to combat economic crime, so it is worth understanding what the measures entail to mitigate the risk of being scammed.
How does the Companies House identity verification scam work?
Those being targeted by the scam will typically receive an email indicating that a company director, Person with Significant Control (PSC) or other company officer must complete an identity verification process.
This email will likely have a strong tone of urgency and will outline a series of punishments that await anyone who ignores its message, such as penalties or restrictions.
By using urgent language, the scammers hope that a person will act in haste before they have considered whether the request is genuine or safe.
It may be challenging to spot the scam immediately as many of the emails closely resemble legitimate messages from Companies House.
Some wording may even be copied directly from official correspondence, but there are key warning signs to be vigilant of.
Signs to look out for include:
Why is my information being targeted?
Personal and company information can be highly valuable for criminals who aim to use it to facilitate future scams or commit financial crimes.
Information such as names, dates of birth, addresses and contact details can be used to commit identity theft or build a detailed profile of an individual director.
Likewise, the scam can result in unauthorised individuals having access to sensitive information about your business by gaining access to your company accounts and they may be able to submit unauthorised filings or impersonate directors when communicating with suppliers, customers or financial institutions.
Information can also be sold to other criminals and become part of future phishing campaigns, banking scams, invoice fraud schemes or tax-related scams.
Once a person or business has become a target, it is likely they will be subject to repeated scams in the future.
This is where getting the expert support of an accountant is vital.
Our team will help you to understand the full changes to Companies House so that you do not need to guess whether an email is genuine.
If you have received an email from Companies House that you believe is a scam, report it immediately to phishing@companieshouse.gov.uk and delete the email from all mailboxes. Full guidance on scams can be found here.
If you would like to better understand the changes to Companies House and how they affect your business, speak to our team today.
