New Anti-Fraud Law to Relieve Cash Flow Pressure

23rd February 2018.

UK company directors targeted by identity fraudsters will be protected by new laws allowing them to withhold their personal addresses from documents filed at Companies House, the Financial Times has reported.

As the face and paycheck of the company, directors are sometimes the most vulnerable. Perceived as affluent by thieves and the subject of a volume of public data; they are an easy target. Recent research conducted by Cifas, the UK fraud prevention service, found that company directors are twice as likely to be victims of identity theft. As a response, the Department for Business, Energy and Industrial Strategy has announced new laws which will enable company directors to remove their personal addresses from the UK’s official company register. This should protect directors from fraud, and protect companies from associated costs.

Particularly for the financial sector, fraudulent attacks can be brutal. The amount of sensitive customer information that is kept within the sector walls make it vulnerable to the modern-day hacker. This new law will afford businesses with an added security measure, and allow directors to guide their businesses into prosperity rather than stagnation. Here at the Credit Protection Association, we have various anti-fraud procedures in place to protect your members, and well as debt recovery services to help them protect their own businesses.

Currently, directors have to provide details including name, personal address and date of birth to Companies House, making it easy for identity fraudsters to piece together the details they need to apply online for a loan or purchase goods.

“All fraudsters need to get through the door is a name, address and date of birth,” said Sarah Lewis, head of identity and fraud strategy at Equifax, the credit reporting agency. With this personal information so readily accessible, it is little wonder so many fraudsters take advantage.

Business minister Andrew Griffiths said: “These new laws will protect new and existing business owners from potential harm and identity fraud while ensuring we maintain our high standards of corporate transparency.”

Fraud is an increasing worry for financial institutions as technology continues to transform the workplace. Company directors and their staff are generating a stronger media presence, making it easier for fraudsters to create false sales and identities. This new law is a positive step in the right direction, a clear sign that although the sector is vulnerable, we are well aware of how to combat it.

Credit management and debt recovery companies offer businesses a way to free up their cash flow. Some use this renewed financial freedom to renovate their office or open new stores, while others use it for protection. While this new law combats fraud, it also highlights its significance. More businesses should be protecting themselves against swindlers, and CPA can help. Here at the Credit Protection Association, through our debt recovery services, we offer many of our members the cash flow opportunities to expand their business, prevent business closure and invest in anti-fraud preventative measures.