COMBATING FRAUD - A MAJOR NEW METROPOLITAN POLICE AND COMPANIES HOUSE INITIATIVE

The Metropolitan Police Service has today (Monday 9 May 2005) launched a major
new initiative to advise businesses how they can take simple preventative measures to stop their company’s identity from being hi-jacked. Fraudsters who steal the identity and then trade under a legitimate company’s credit and name are thought to have cost industry over £50 million a year.

Working with Companies House under the ‘Sterling’ initiative, the MPS warn companies to take four simple steps, which will protect them from being cloned by a fraudster:

These are by firstly checking your company’s registered details are correct at Companies House and that they have not been fraudulently changed.

The next step for additional security is for companies to sign up for Companies House Software Filing, by which information is filed online with an electronic password. Companies House electronic customers can then subscribe to ‘PROOF’, the protected online filing service that reduces the possibility of fraud even further. PROOF customers tell Companies House that they will only file electronically, and that paper which claims to come from them should be rejected.

The third step is to sign up to Companies House “Monitor”, an email alert system through Companies House Direct, which will warn the password-holder when any future changes to your company details are made.

The fourth and final step is a precautionary measure not to rely solely on Companies House records in determining whether to lend on goods or services on credit. Companies House is a public record registry and not a credit reference agency or crime prevention service. It is therefore recommended that you satisfy yourself that your customer is legitimate through additional means.

The Metropolitan Police’s “Sterling” initiative is a long-term partnership strategy which takes a pro-active partnership approach to reducing opportunities and combating economic crime. Part of its aim is to dispel the myth that fraud is “victimless” crime.

Assistant Commissioner Tarique Ghaffur said: “As a result of working together with Companies House this ‘Sterling’ initiative will have a significant impact by providing a method to prevent company identity fraud and protect businesses from considerable losses through this type of criminal activity.”

For more details see www.met.police.uk/fraudalert.

For more details on how you can protect your company’s identity, see www.companieshouse.gov.uk . To obtain details of 'PROOF' click on
http://www.companieshouse.gov.uk/infoAndGuide/proof.shtml
For general enquiries please ring +44 (0)303 1234 500. Press queries: 029 2038 0526 or 029 2038 0161