How scammers are using HMRC and Companies House’s names to extort money from the public

The trend of scammers impersonating reputable government organisations like HM Revenue & Customs (HMRC) and Companies House to extort money from unsuspecting individuals and businesses is becoming alarming. Fraudsters take advantage of the trust businesses and individuals have placed in these government establishments to manipulate them.

Let’s explore the alarming trend where scammers impersonate and use HMRC and Companies House names to steal from unsuspecting victims.

How scammers impersonate HMRC

Imagine what it would feel like if suddenly from nowhere you receive an email claiming to be from HMRC stating that you are entitled to a tax refund. There are necessary forms you have to complete with your personal details to facilitate your refund. Unfortunately, many unsuspecting individuals and businesses automatically fall into this trap because who does not want a tax refund?

This phishing scam exists and fraudsters use personal details to access and open individuals’ or businesses’ bank accounts in their name and either steal the amount in the account or apply for loans. This may cause financial constraints to businesses and individuals.

Additionally, people are getting fake tax collection letters in which the website where tax has to be paid looks similar to HMRC’s site.

Icon Offices has encountered situations where clients using their virtual addresses as registered addresses with Companies House have received suspicious letters. Upon inquiry, Icon Offices conducted thorough investigations and determined that these letters were fraudulent.

HMRC and Companies House are reputable government agencies that collect tax and register and upload companies’ information respectively for transparency and legal compliance. It is easier for scammers to don clocks of these to government agencies to collect companies’ details and mimic official correspondence to extort unsuspecting victims.

Exploitation of companies’ information on Companies House public register

Companies House makes certain company information publicly available for transparency and to help maintain trust and accountability in the business environment. However, these companies’ information is exposed to scammers.

Fraudsters send emails or texts pretending to be from Companies House, often claiming that the recipient needs to update their business details. Such messages come with links to phoney websites engineered to obtain personal data and financial information.

Additionally, criminals register firms illegally using the residential or company addresses of innocent people. Consequently, confusion can be created due to unwanted communications in homes or businesses leading subsequently to financial loss or damage of reputation.

Another way for extortionists is by employing threats of litigation against unsuspecting victims thereby instilling fears of non-compliance issues. All UK companies must submit statutory documents to HMRC and Companies House every year. Scammers may manipulate firms that have not updated their data by scaring them with fines or shutting down operations which in turn leads to financial losses.

How to save yourself from getting scammed

To avoid getting scammed, companies and individuals will have to religiously verify the authenticity of communications from HMRC and Companies House. From their official websites, companies can confirm by calling them directly to confirm the authenticity of any communications.

Additionally, do not panic or react quickly when you get such emails or letters, always check the complete details of the sender. Cross check the communication by reaching out to the official HMRC or Companies House communications channel. 

Companies House this year gained new powers to clamp down on fraudsters using other companies’ names and addresses without their consent. With these new powers, it would be easier to report and remove personal or business information that has been misused.

Do not use your personal address as the registered office address or director’s correspondence address since the address is made available for the general public by Companies House on their register which in turn is used by scammers. Instead, business owners can use virtual office addresses which provide privacy to your home.

Business services providers like Icon Offices can check whether the letter or email you got is genuinely from Companies House or HMRC, depending on where you got the letter from. 

By leveraging these services, businesses can significantly reduce the exposure to scams and protect their financial information and operations from fraudulent activities.