Originally published June 16 2005
Identity theft hits small business
by Mike Adams, the Health Ranger, NaturalNews Editor
This article in Freelance UK describes how companies now run the risk of being impersonated by fraudulent outfits that buy things at the company's expense and ruin its credit ratings.
Small business owners are increasingly vulnerable to company identity fraud with criminals so far costing the enterprise community £50 million a year.
Companies House and the Metropolitan Police say the figure represents the cost to the sector from fraudsters changing information on the national business register so they can pose as a legitimate business.
Typically, criminals exploit a loophole in the Companies House database that lets them change the name of the director or simply amend the official business address.
With the changes made, crooks pose as the targeted entrepreneur and order goods such as cars, computers and mobile phones - effectively ruining the firm's credit rating and landing it with hefty charges.
Scotland Yard and the Company Register recently launched a joint initiative, Operation Sterling, to combat the attack on business in a bid to boost the few safeguards in place.
Their advice is for businesses to monitor their online filings with Companies House, as they continue their campaign to alert the sector to the newest form of identity theft.
"The disruption to cashflow is enormous and can be very damaging to small firms."
Authorities also warn that fraudsters are alternating their tactics, sometimes posing instead as a legitimate company looking to sign large deals with reputable firms.
To reduce the threat, entrepreneurs are advised to check with Companies House before delivering an order so they can check the validity of their customer.
Such a move might have saved owner-manager, David Waterman, who is still attempting to get his company record corrected after fraudsters changed it from Whitechapel to West Ham.
Companies House abdicates all responsibility for the information it registers," said Waterman, adding: "if it arrives in the post, it will file it."
A spokesman for Companies House has reacted saying it is not a "prosecuting authority for fraud, it's a public register."
All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing LLC takes sole responsibility for all content. Truth Publishing sells no hard products and earns no money from the recommendation of products. NaturalNews.com is presented for educational and commentary purposes only and should not be construed as professional advice from any licensed practitioner. Truth Publishing assumes no responsibility for the use or misuse of this material. For the full terms of usage of this material, visit www.NaturalNews.com/terms.shtml