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Identity Theft of your Limited Company
Author: By: Michael Harris
The UK registry at Companies House provides a useful service for limited
companies. In addition to incorporating and dissolving companies they also
maintain the national register. This involves the recording and storing of data
relating to all UK incorporated companies and LLP's. Historically most records
were updated by the submission of manual forms. This would include the
submission of company accounts, change of address forms and forms appointing new
company officers as well as many other documents. Whilst this system has served
a purpose for many years it is far from secure as signatures are not checked and
changes are implemented without further checks.
Identity fraud has
increased over recent years, which meant that the previous system at Companies
House was open to serious abuse. Companies have found their records have been
updated without their knowledge. Individuals can masquerade as company officers,
open bank accounts and enter into fraudulent contacts. It has been too easy for
too long for businesses to be deceived and for companies to be
hijacked
However, Companies House has now introduced some basic
protective measures that limited companies in the UK can adopt. Firstly they
have introduced 'WebFiling'. This is an electronic online filing system. It
allows companies to make changes to their company details online. Instead of
posting forms to Companies House changes can now be made in minutes online. To
increase security there are two simple security procedures used. A security
'authentication code' is issued for each company and users require a security
code to access the software.
The second security improvement is that
users can sign up for Companies House 'PROOF' service. This means that they will
no longer accept manual paper forms to make changes to your company records.
This stops the opportunist from simply completing forms and posting them to
Companies House. Any paper forms will require further authorisation from
existing officers.
Whilst these two points should reduce identity theft
companies can also 'monitor' their companies filing. This does not literally
require daily monitoring of Companies House. For a small fee of £0.50 per annum
Companies House will inform you by email every time a document if filed at
Companies House for your company. This includes manual and electronic filing.
This means that you can double check all changes made to your company without
leaving your desk.
These three simple to implement measures should help
protect the future identity of your limited company. Not only will you have
piece of mind but you will save your company time and money by filing online.
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