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When you decide to register your company, you are taking an important step towards starting your business. This is an exciting milestone, but it’s important to be aware that it can also make you a target for scammers.
Company registration scams have become increasingly cultured. These scams aim to deceive businesses into exposing sensitive information or making unnecessary payments. They can take many forms, including letters, emails, and even phone calls, often claiming to be from official bodies like Companies House.
To protect your business from these threats, it is important to stay alert and informed. In this article, we will guide you through the types of company registration scams to watch out for, how to identify them, and the steps you can take to stay safe and secure your business information.
Scammers often use official-looking letters and emails to deceive business owners. One common scam involves correspondence that appears to be from Companies House, requesting payment for services such as "enhanced Webfiling" or "publication" in a business directory. These letters can be highly conclusive, including your company name and registration number, but they are entirely false.
For instance, a scam letter might instruct you to make a payment of £48 to avoid the suspension of your web filing services. These letters may include errors and other subtle errors that can be easy to overlook. Similarly, scam emails can be just as deceptive.
An example of the letter is shown below.
Meanwhile, this extract from the Companies House website does confirm this to be a scam:
If you receive a suspicious letter, contact us immediately on 0303 1234 500. Never pay any money to the sender.
Credit goes to accaglobal
Such emails might claim that your business is at risk of being removed from the register unless you update your details immediately. They often contain links to fake websites simulating the official Companies House portal, designed to steal your data or install malware on your device. Another example includes emails stating that hundreds of phone calls and emails have been sent in your company name, prompting you to click a link to see the details.
Telephone scams are another dominant method used by scammers. These calls often come from individuals imagining to be from Companies House, requesting sensitive information such as your authentication code, full dates of birth of directors, or payment for late filing penalties. It is important to remember that Companies House will never contact you by phone to request immediate payment or secure information.
If you receive such a call, it is advisable to attempt to get a return telephone number and contact Companies House directly on their official number to verify the authenticity of the call.
Phishing scams pose an important threat to businesses, particularly those related to company registration. These scams typically involve emails or messages asking you to verify your identity or download documents.
For example, you might receive an email claiming to be from Companies House or HMRC, asking you to verify your identity by a specific date. These emails often come from slightly altered email addresses (e.g., "noreply@companieshousel.ink") and are designed to trick you into divulging sensitive information.
Scammers also target businesses through online filing and document submission scams. These scams may include emails claiming that your application has been submitted and asking you to download a copy of the application. Despite appearing to come from valid Companies House email addresses, these emails are phishing attempts aimed at stealing your data.
Additionally, some scams may ask you to use an "e-Sign platform" to download and review documents related to your business. This is another tactic to gain access to your sensitive information.
Identifying company registration scams needs a keen eye for detail and an understanding of the common red flags that indicate fraudulent activity. Below are key indicators to help you decide genuine communications from scams.
When reviewing letters or emails claiming to be from Companies House, pay attention to these warning signs:
Alignment and Formatting: Genuine letters from Companies House feature properly aligned text. Scam letters often contain misaligned or poorly formatted text.
Incomplete Contact Details: Authentic communication includes a full address, DX number, and telephone number. Scam letters may lack these details or provide incomplete information.
Undated Letters: Official letters from Companies House are always dated. If a letter is undated, it is likely a scam.
Spelling and Grammar Mistakes: Legitimate communications are free from spelling and grammar errors. Scam letters frequently contain such mistakes.
Unusual Payment Requests: Be careful of letters or emails requesting payment via unusual methods, such as QR codes or URLs leading to external payment sites.
Telephone scams can be particularly convincing, but here are several red flags to watch for:
Requests for Sensitive Information: Companies House will never ask for your authentication code, bank details, or secure information like directors' full dates of birth over the phone.
Urgency: Scammers often create a sense of urgency, claiming immediate action is required to avoid penalties or other consequences. Legitimate calls will not pressure you in this way.
Lack of Verification: If the caller cannot provide a return telephone number or seems elusive about their individuality, it is likely a scam.
Phishing emails and messages often exhibit clear signs of fraud:
Fake Email Addresses: Scammers may use slightly altered email addresses (e.g., "noreply@companieshousel.ink") to make the email appear legitimate.
Urgent Action Required: Phishing emails frequently claim you must act immediately to avoid legal penalties or data breaches. These emails often contain links to fake websites designed to steal your data.
Generic Greetings: Genuine emails from Companies House typically address you by name or company name. Phishing emails often use generic greetings.
When handling online filing and document submissions, be watchful for these red flags:
- Unusual Links and Downloads: Be cautious of emails asking you to download documents or use an "e-Sign platform" from links that do not lead to the official Companies House website.
- Fake Application Submissions: If an email claims your application has been submitted and asks you to download a copy, verify the email's authenticity by contacting Companies House directly.
To ensure you are not falling victim to company registration scams, it is important to verify the authenticity of any communication claiming to be from Companies House or other official bodies. Follow these steps to stay safe:
- Official Contact Details: Always use the official contact details provided on the Companies House website. If you receive a letter or email, double-check the contact information against the official website to ensure it matches.
- GOV.UK One Login: For identity verification and other official services, use the GOV.UK One Login system. This is a secure way to interact with Companies House and guarantees you are dealing with the genuine service.
- Authorized Corporate Service Providers (ACSPs): If you are using an ACSP for identity verification or other corporate services, ensure they are registered with an Anti-Money Laundering (AML) supervisory body and recognized by Companies House.
- Verify Identity Requirements: Familiarize yourself with the new identity verification requirements introduced by Companies House. Understanding what is mandatory and what is voluntary can help you identify scams that ask for unnecessary or premature verification.
When making payments related to your company registration, it is essential to follow secure payment practices to avoid scams:
- Official Payment Methods: Companies House will only request payments through official channels, such as their website or recognized payment gateways. Be cautious of requests to pay via unusual methods like QR codes, wire transfers, or external payment sites.
- No Advance Fee Requests: Legitimate communications from Companies House will never ask for advance fees for services that are not clearly outlined on their official website. Treat any unsolicited requests for immediate payment with suspicion.
- Bank Account Verification: Never share your bank account details in response to an email or phone call. If you need to update your payment information, do so through the secure login area of the Companies House website.
If you suspect that you have been targeted by a company registration scam, it is important to report it immediately to the relevant authorities. Follow these steps:
- Forward Suspicious Emails: If you receive an email that appears to be a scam, forward it to phishing@companieshouse.gov.uk. This helps Companies House track and mitigate phishing attempts. After forwarding the email, delete it and avoid opening any attachments.
- Contact Companies House Directly: For any suspicious letters or phone calls, contact Companies House directly at for Consultation 03369969997. They can verify whether the communication is legitimate and provide guidance on how to proceed.
- Document Everything: Keep a detailed record of all communications, including dates, times, and specific details of the interactions. This documentation can be invaluable if you need to report the scam or seek further assistance.
- Report to Action Fraud: In addition to notifying Companies House, report the scam to Action Fraud, the UK’s national reporting center for fraud and cybercrime. This contributes to building a broader picture of scam activities and enables more effective action against scammers.
If you have fallen victim to a company registration scam, there are steps you can take to mitigate the damage and recover:
- Notify Your Bank: If you provided financial information or made payments to scammers, notify your bank immediately. They can help secure your account and may assist in recovering any lost funds.
- Change Passwords and Authentication Codes: If you suspect that your authentication code or other sensitive information has been compromised, update your passwords and authentication codes as soon as possible. Contact Companies House to inform them of the situation and allow them to take necessary precautions.
- Update Your Registered Office Address: If your registered office address has been compromised or used fraudulently, apply to Companies House to update it. They will replace the incorrect address with a default address and require you to provide a new, appropriate address within 28 days.
- Seek Professional Advice: Consult with a professional advisor, such as an accountant or legal expert, to guide you through the recovery process and ensure your business is protected from further scams.
To safeguard your business against scams and fraud, it is vital to utilize the new identity verification measures provided by Companies House. These measures aim to enhance the integrity of the business register and deter fraudulent activities:
- ID Checks for Company Officials: Ensure that all individuals involved in establishing, managing, owning, or controlling your company undergo proper identity verification. This includes directors, secretaries, and persons with significant control (PSCs). This step builds confidence in the business environment and makes it harder for criminals to conceal their identities.
- Accurate and Up-to-Date Information: Maintain accurate and current information on the Companies House register. This includes verifying that the registered office address, email addresses, and other contact details are correct. Providing a registered email address enables Companies House to validate information directly with your company.
Protecting your company's data is essential in preventing scams and fraud. Follow these best practices:
- Use Secure Communication Channels: Always use secure communication channels when dealing with Companies House or other official entities. Avoid accessing sensitive information via public computers or unsecured networks.
- Register with the Corporate Telephone Preference Service: Register your company telephone number with the Corporate Telephone Preference Service (CTPS) to reduce unwanted calls from scammers. This service is similar to the Telephone Preference Service (TPS) for individuals but tailored for businesses.
- Regularly Review Your Company's Records: Periodically check your company's records on the Companies House register to ensure accuracy and detect any unauthorized changes. Report discrepancies immediately.
Exercise caution regarding unsolicited goods and services that may be part of a scam:
- Beware of Unrequested Services: Stay alert to companies offering services such as "enhanced Web filing" or inclusion in business directories without prior request. These are often scams intended to extract money from unsuspecting businesses.
- Verify Third-Party Providers: When using third-party providers for corporate services, ensure they are authorized and recognized by Companies House. Agents and corporate service providers must adhere to new regulations and identity verification requirements.
Keeping informed about the latest changes and best practices is important for protecting your business:
- Follow Official Guidance: Stay up-to-date with the latest guidance and reforms from Companies House. These new measures are designed to combat fraud and maintain the integrity of the business register. Regularly visit the official Companies House website for updates and new policies.
- Engage with Professional Advisors: Seek advice from professional advisors such as accountants or legal experts who are familiar with the latest regulations and practices. They can help your business adapt to changes and ensure compliance with all necessary requirements.
In conclusion, protecting your business from company registration scams requires vigilance and a thorough understanding of the latest reforms and best practices. Always verify the authenticity of communications claiming to be from Companies House, and watch out for red flags such as unusual payment requests and spelling mistakes.
The recent reforms under the Economic Crime and Corporate Transparency Act have empowered Companies House to proactively combat fraud. Key measures include identity verification and rejecting fraudulent submissions. Stay informed about these changes, safeguard your company's data, and report any suspected scams immediately. By taking these steps, you can significantly reduce the risk of falling victim to scams and help maintain the integrity of the business register.
What are the common signs of a company registry scam letter, and how can I identify them?
Common signs of a company registry scam letter include:
Official-looking letters with a reference number, claiming your company status is pending and requires activation through a payment.
Requests for payment to 'confirm' or 'activate' your company registration or a supposed 'secure vault'.
Letters that mimic the appearance of official documents from Companies House but are actually sent by entities like 'Company Registry'.
An urgent demand to pay quickly to avoid negative consequences.
Why do scam letters often appear to be official documents, and what should I do if I receive one?
Scam letters often appear as official documents to deceive recipients, using logos and letterheads from government agencies like the IRS or SSA. If you receive one:
Carefully read the content for red flags, such as demands for immediate payment, grammatical errors, or missing official logos.
Verify the letter's authenticity by contacting the relevant agency directly using their official phone numbers.
Report suspicious letters to the appropriate authorities, such as the Treasury Inspector General for Tax Administration (TIGTA) for IRS scams or the Criminal Investigations Service Center for general government look-alike mail.
How can I verify the legitimacy of a company or organization contacting me about my company registration?
To verify the legitimacy of a company:
Search for their business registration on the Secretary of State office’s website or directories like the Better Business Bureau, Companies House, or ASIC.
Verify their contact information by checking the address on Google Maps and contacting them via phone, email, or social media.
Assess their online presence, including their website's privacy policy and terms of service.
Whenever possible, try to obtain official documents directly from the company.
What are the red flags I should watch out for to avoid falling victim to company registration scams?
To avoid company registration scams, watch for:
Official-looking letters or emails demanding extra payment for 'confirming' or 'activating' your company registration.
A lack of clear contact information or only a PO box address.
Urgent deadlines and threats of penalties or legal action.
Requests for sensitive business or financial information.
Demands for payment by wire transfer or gift cards.
Unprofessional websites and email domains.
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