Guarding Your Business Identity: The Rising Threat of Cloning

How Business Name Protection Provides Essential Security

In the fast-paced world of business, protecting your intellectual property is more crucial than ever. Companies House has begun an investigation following recent reports revealing a disturbing trend – identity theft scammers are cloning renowned restaurants. It’s not just the small guys being targeted, well known names like those owned by Heston Blumenthal, Yotam Ottolenghi, and the Ritz have also become victims to this. This emerging scam involves fraudulent registrations of more than 750 fake firms within the first six weeks of 2024 alone.

Imagine the impact on your business if a clone with a slight misspelling of your name starts opening bank accounts and applying for loans. This isn’t just a hypothetical scenario; it’s a real threat faced by businesses today.

Here’s the breakdown of how this scam works: for a small sum, scammers can register a business online with Companies House, the UK’s central registry of companies. Within 24 hours, they have a fake company, often with a misspelled name or address, ready to go. With this, they can pilfer overdraft money from cloned bank accounts and order high-value goods from unsuspecting suppliers eager to fulfil what seems like legitimate orders.

Now, you might be wondering, “How can this be allowed to happen?” It’s a valid concern. Graham Barrow, a fraud expert, rightly points out that Companies House needs to step up its game. Currently, it’s too easy for scammers to exploit the system, and the consequences are dire.

For some time now we have been highlighting that registering a business’ name at Companies House offers a business very little in the way of protection.

A slight change in the spelling or wording would still be able to be registered at Companies House and this has been known to have reputational and financial damage.

Changes are on the horizon, Companies House is set to receive new powers this month to tackle fraudulent registrations, but implementing tougher checks will take time. In the meantime, what can you do to protect your business?

1. Stay Informed: Be aware of the risks and stay informed about the latest developments in intellectual property protection.
2. Consult with Experts: Consider consulting with specialists in intellectual property. They can guide you on best practices and help safeguard your business against potential threats.
3. Protect Your Brand: Even if you’re not ready or able to protect your business with trademark registration, explore alternatives like our unique product – Business Name Protection. It’s tailored for businesses like yours, offering a shield against passing off in the UK. You would be protected should a business pass themselves off against you and we will cover the first £10,000 of legal fees associated with a case of passing off.

Remember, taking proactive steps now can save you from headaches later. Don’t let your hard work and reputation fall prey to identity theft scams. As we navigate these changes in intellectual property law, your business deserves the best protection available.

Stay vigilant and get your company name protected. Should you wish to discuss how you are able to secure and protect your business’ name from identity theft and copy cats call us on 0800 069 9090 or email us at info@start.biz .