Policy & Compliance
Avoiding the fraudsters is becoming more dif fi cult than ever – no information you receive can be trusted until you have checked it. But what should you do if you do fall victim to fraud? Progress on dealing with fraudulent traders
B IFA has been engaging with government agencies, the police and other interested parties in an effort to raise the pro fi le of fraud within the supply chain. The deeper that we delve into the matter the more we become concerned. Our mantra has always been “know your customer”, which holds as true now as it did in the past. Now Members must add a new one: “Do NOT trust any single piece of information provided – check, check and check again.” One organisation that BIFA has worked with is Companies House, which is implementing the Economic Crime and Corporate Transparency Act (ECCTA). There are various aspects to this work but one, verifying a director’s Identity, is expected to lead to at least some directors removing themselves from the data, which in turn will lead to some companies disappearing from the Register of Companies. Recently there has been a tightening up and closer scrutiny of companies, and we have heard of a particular focus in instances where one postcode accommodates multiple companies. BIFA was particularly pleased to read the following news: Three companies have been shut down after helping to set up thousands of businesses that had no real presence in the UK. Yunma Tianlong International Consulting Co Limited, Busy Secretary Service Limited, and J&C Business (UK) Co Limited supported overseas clients, mainly from China, to register businesses in the UK. None of the companies were registered with HM Revenue and Customs (HMRC) as trust and company service providers (TCSPs), meaning they operated
outside anti-money laundering rules. Several of their client companies, which sold products such as pet supplies and women’s clothing, have also already been shut down by the courts after investigations found they gave customers a false impression of being genuine UK businesses. More than half the client companies have had enforcement action taken by Companies House and investigations are ongoing. Additional information can be found here. Reporting fraud One other question we receive from Members is, “How and to whom do we report fraudsters?” After discussions with government, BIFA can confirm the route for complaining about limited companies – it routes to the relevant organisation, according to the responses provided to the questions. The first is Companies House, which has established a team to deal with non-compliant companies. The link is Complain about a limited company - GOV.UK Action Fraud has been replaced by Report Fraud and features as part of this reporting process. It is recommended that any fraud is reported via this route too. It should be noted that sole traders, etc, can be reported via this route. This means that all fraudulent traders can be reported to government. Also, dependent on the specific issues involved, the matter can be reported to HMRC at https://www.gov.uk/report-tax- fraud . This website refers to both general and a couple of specific import/export related offences – but the department has confirmed that all fraudulent activities can be reported online.
Another organisation that Members should consider reporting fraud to is the Insolvency Service’s Complaints Gateway. This oft overlooked entity does have the powers to investigate live companies where it has received reports of serious corporate abuse such as significant misconduct, fraud, scams or sharp practice in the way the company operates. In terms of the information required, whilst this is not official guidance, as a minimum we suggest the following data must be available to report the suspected offence to government: 1. Details of the suspect/company • Name and address: The full name of the company or individual suspected of fraud, along with their address. • Company registration number: If applicable, provide the company’s registered number (eg from Companies House). • Contact information: Known phone numbers, emails, or websites used by the fraudster. • Key personnel: Names of directors, officers or employees involved. 2. Description of the Incident • What happened: A detailed
“ Recently there has been a tightening up and closer scrutiny of companies, and we have heard of a particular focus in instances where one postcode accom - modates multiple companies
22 | April 2026
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