Couple trace fake firms to single block of flats

A couple found they were the victims of identity fraud after their address was changed without their consent and fake companies and accounts set up in their name.

An investigation by the couple then led them to discover a number of companies listed as being based at the same address, a block of flats in Solihull, in the West Midlands.

Sophie, whose name has been changed to protect her identity, said they faced months of stress and felt they had a lack of support from Companies House.

A spokesperson from the government agency, said: “Prior to the introduction of the Economic Crime and Corporate Transparency Act there were limited powers to validate the information that was delivered to her. 

"New powers under the Act allow us to act more quickly if people inform us personal information has been used without their consent.”

Sophie told the BBC she first discovered something was wrong when her husband's postal vote did not come through for their local elections in 2023.

They contacted the council, who told them their address had been changed without the pair knowing about it.

Sophie then received a letter from a trade company asking her husband to confirm a business account for a company that was not theirs.

Acting quickly, the pair contacted Action Fraud and the UK fraud prevention group Cifas to flag the issue.

This then led to them receiving several letters from bank and credit companies telling the couple attempts were being made to set up accounts in their name.

Sophie's husband was also listed as the director of another company.

As the couple have a legitimate business themselves, she said they wanted to act quickly and contacted Companies House about the fraudulent companies.

To knowingly register false information with the agency is a crime under the Companies Act.

But the process of getting a person's name removed from a business was "not straightforward", according to Sophie.

"They first write to the registered address and ask the named director to provide further proof of their ID," she added.

"They are given several weeks to respond, during which time the business can still trade.

"If they get no response, they will then move to dissolve the business, which again takes time.

"I had to send a lot of details to them, which is ironic since they clearly didn't ask for details at the beginning when the companies were being set up."

Sophie sought legal advice to see if the efforts could be speeded up but was told it would cost £2,000-4,000 in advice fees with another £10,000-15,000 if the matter went to court.

"It took around four to five months to get his name removed, a lot of time. This chasing down has taken hours and hours of our time," she said.

Sophie contacted her local police force about what had happened but said she did not receive a response.

A spokesperson for West Midlands Police said they investigated allegations of identity fraud in Solihull in 2023 but "no suspects were identified".

Sophie said her efforts to look into their situation led to her finding that the registered address of all the fake companies was a block of flats in Solihull.

The block consists of about 30 apartments but Sophie said there were 24 different businesses registered there.

They ranged from ones dealing in sweets and confectionary to others which said they were removal services and construction.

"This highlights how easy it is to do, since the registration of adjacent addresses is lazy and obvious," she said.

In most of the cases, Sophie found the names used to set up the companies belonged to a pensioner.

"A lot of these people, particularly those in their seventies, they won't have a clue what is happening and wouldn't necessarily have the resources to chase it down," she said.

"This could be hugely stressful for people and could actually end up costing them a lot of money.

"We had to register for CFA's (Counter Fraud Authority) which aren't free, we pay for that now because we feel we need to check our credit score but that option wouldn't be open to everybody."

Sophie said she believed their case was not unique.

"This seems to be such an easy thing to do and there's really no comeback," she said.

"It almost feels like, well, you might as well give it a go."

The Economic Crime and Corporate Transparency Act became law in 2023 and was aimed at giving Companies House greater powers to remove invalid registered office addresses.

But Sophie said she wanted to see more thorough checks of who was setting up new firms.

"I think there must be thousands of people in the country who are directors of companies and don't even know," she said.

"They need better identification for when you're setting up a company. Far better checks and balances when you're setting up a company.

"It shouldn't be this easy."

• Contact the organisation concerned - whether it be a bank, credit card company or something else and let them know what's happened
• Report it to Action Fraud - individuals or businesses who have fallen victim to identity fraud should report it to Action Fraud on 0300 123 2040 or on their website.
• Get victim support - if you have been a victim of fraud, you can contact Victim Support for free, confidential advice and support
• Report fraudsters If you have information about those committing identity crime please tell independent charity Crimestoppers anonymously on 0800 555 111 or at their website
• Query suspicious mail - be suspicious of any unsolicited emails, even if it appears to be from a company you know of

BBC Action Line also has links to organisations that may be able to help if you have been affected by a scam or fraud. You can find out more about how to stay Scam Safe here.

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