At the end of 2018 my personal details were fraudulently used and linked to a company I had never heard of.
At the time I was the Secretary of State for Work and Pensions and the first I knew about it was after a journalist demanded replies by the end of the day or he would write a story over my position as company secretary for a political lobbying firm.
It took months to resolve the issue and despite telling Companies House my identity had been stolen, the onus was on me to prove it and the odds were stacked against me. Surely it should have fallen on the company to prove it had my permission to use my name on its register.
It was an unnerving and challenging time, the address of my office in Wilmslow had also been used, all in an attempt to damage my reputation.
I spoke out at the time about what was happening in this paper and The Guardian covered the story. It led to me being contacted by many people who had experienced similar problems. After closer investigation I was shocked to learn that every year thousands of people apply to Companies House after their names or addresses have been used without consent. Sometimes the fake registrations allow a fake company to scam victims, other times they are used to discredit or target an individual, as was the case with me.
It was obvious there were loopholes in the system. The process needed overhauling and so I set out to ministerial colleagues and officials at the Department for Business what I believed needed to change, based not only on my own experience but also the many other stories shared with me.
I am pleased government listened and as of this month, new powers were introduced under the Economic Crime and Corporate Transparency Act 2023 giving Companies House the biggest overhaul in its 180 year history.
Anyone registering a company will be required to verify their identity, making it much harder to register fictitious directors or beneficial owners, stopping the vast majority of fraudulent appointments from reaching the register.
Businesses will also need a registered address and not a PO Box, as well as having to confirm plans for its future activities. Measures also include new powers to tackle and remove inaccurate information – which Companies House say they will make a priority.
All of these powers will be supported with new criminal offences and civil penalties, so those who abuse the system will face greater consequences.
Government was right to act and I will be working with Companies House to make sure nobody else shares the horrible experience of being listed as the director or secretary of a company they have no control over.
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