Companies House makes changes to protect directors from identity fraud
The Government will make Companies House safer to use following research that directors are “disproportionally” targeted by identity thieves.
A new study, carried out by fraud prevention organisation Cifas, found that company directors are twice as likely to be victims of identity fraud.
Likewise, one in five victims of all recorded cases of identity fraud are company directors.
The report indicates that company directors are “disproportionally” affected by cyber criminals because of the publically available information listed on Companies House – such as a personal address.
The new rules will protect stakeholders listed on the company register by removing the requirement to use a personal address and use a business address instead.
Business Minister Andrew Griffiths said the changes will help to ensure people feel safe when setting up a new business by protecting directors from identity fraud.
Business Minister Andrew Griffiths said: “Through our Industrial Strategy we have set our blueprint for ensuring we build on our reputation as one of the best places in the world to start and grow a business.
“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.”
Under the current rules, directors can only remove their personal address if they can prove that there is a serious risk of violence or intimidation as a result of the company’s work.
The new regulation will come into force by the end of summer 2018.