Identity fraud increasingly affects business. One of the biggest problems for companies is that fraudsters can submit forms to Companies House which enable them to change the names of company directors and the registered address of the company. Once this has been done, the ‘new’ directors can open new bank accounts, have goods delivered to ‘new’ addresses which they then sell on but never pay for. In the meantime the original genuine business can be ruined. So how can you protect your company?
First of all consider using the free PROOF (PROtected Online Filing Scheme) service at Companies House. It means you have to file documents online, but this in itself saves money (to deliver an annual return in hard copy costs £30, but only £15 online) and is very straightforward. Companies which elect to join the online filing scheme improve security by using passwords, confidential authentication codes and recognised email addresses. Once you have your security code and authentication code Companies House undertakes only to accept specific statutory forms electronically, for example appointment/termination/change of particulars of directors and change of registered office.
Forms that can be submitted under this scheme are 288a, 288b, 288c and 287 and annual return. As an added security measure, an email is sent to the company’s registered email address when any of its details are changed. Companies House then rejects any paper versions of the above forms and sends them back to the company unless specifically authorised to accept them by the company. In this way businesses can be sure that only they can file the forms to register such changes. There are new forms for companies to use to ‘opt in’ and ‘opt out’ of the system.
The system is subject to terms and conditions, which you must read. If your company is subject to an ongoing internal dispute you cannot join the PROOF scheme and should seek independent professional legal advice, but for most other companies it is well worth considering. Signing up for PROOF is easy. Simply download the Opt-in Form (PR1) on the Companies House website and send it to Companies House. Click on the appropriate icons for PROOF scheme forms
The WebFiling service is a registration services that provides a secure system enabling presenters to submit company information online. Companies House currently receives data for forms annual return, 287, 288a, 288b, 288c, 353, 353a, 190, 190a, 88(2) and 123. To use WebFiling you must first register online. Then you will be sent a security code to your email address, and a further authentication code will be posted to your company’s registered office. The authentication code is unique to a particular company and is used in place of a signature. The WebFiling service is available Monday to Saturday, 7am to 12 midnight.
Electronic filing requires the use of specialised software to file data to Companies House and this service is more appropriate for bulk use – for example those filing documents on a daily or weekly basis. Documents are automatically validated for compliance with the Companies Act before notice of acceptance or rejection is issued.
Further measures to protect your company are underway. The government’s new company law reform bill will make it a new criminal offence to deliver misleading information to the Registrar and aims to ensure that if your identity is stolen there is more you can do to recover the situation.
Other security measures to help protect your business include making regular checks to ensure that details registered at Companies House are correct. Also, always shred all corporate waste, and ensure that those employed to do so are vetted to ensure they do not have a criminal background and can be trusted with this crucial security job. If you move address, remember to inform all of the companies and customers that you deal with. Consider redirecting your post through Royal Mail. Make sure you keep all correspondence safe and secure – in particular bank and credit card statements, utility bills.
The Association of Chartered Certified Accountants (ACCA) found that 29% of its members or their clients have suffered some form of identity theft. If adopting new security measures cut down on corporate identity theft, many companies will save a lot of time and money, not to mention stress.
