Corporate hi-jacking

Opinion

Corporate hi-jacking

According to credit reference agency, Graydon UK, there's been a huge rise in fraud attempts perpetrated against businesses. The statistics indicate a rise of 130 per cent over the first five months of 2011 to 214 instances, the hijacking of companies and cloned websites being the most common forms of fraud attempt.

Of course fraud is always present and will rise during times of economic hardship; firms need to be on their guard.

Company hijacking isn't new. For those lucky enough not to have experienced it (and who remain blissfully unaware of what it is), they only need to know that it means that a criminal third party effectively changes the firm's details at Companies House. Once changed they can take control of its finances, order products to be sent to a new address and even take out finance agreements on the firm's behalf.

Companies House does offer some protection and guidance on how to protect a corporate identity. Businesses do, however, have to be vigilant though.

This was first published in August 2011

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