More must be done to validate all information detailed on Companies House to protect innocent people having their details fraudulently used, Tatton MP Esther McVey has said.
Ms McVey wants Government to do more to police the website which lists details of individuals linked to companies and thorough checks to be introduced.
Speaking in Parliament she said: “All forms of companies are registered with Companies House and while it is a great resource if used properly, it is open to misuse, abuse and fraudulent information put on there.
“What steps is the secretary of state going to take to ensure that validation pre companies being registered so companies can have faith in the registered?”
Ms McVey wants the system overhauled from the status quo whereby for £14 you can register a company with very few checks on the validity of the individuals listed to a more rigorous registration process which could include providing a phone number which could act as a fraud deterrent as there would be the chance spot checks could be carried out.
She believes it is too easy for individual’s to have their details added to a company without their knowledge and says no appropriate checks are made to validate the authenticity of the person.
In response to her question Business Secretary Greg Clarke said: ““The problem identified is a real and present one, we are taking steps to require information that is given to companies House and therefore for it to be validated.”
Ms McVey added: “It is obvious we need to do more to protect the details of innocent people being used and attributed to businesses and companies they know nothing about. I will keep putting pressure on Greg Clark and the department to act. There are things that can be done and they should be done. On Twitter there are blue ticks to validate the authenticity of the account of certain individuals and something similar could be done which would then show there have been enhanced checks carried out on the company. The public need to have faith in the register but at the moment it is open to misuse, abuse and fraudulent use of the system.”
Ms McVey previously raised with Government her concerns over a Freedom of Information request which asked how many incidents of fraud – someone’s name being listed that was not linked to the named company – it recorded. The response said it did not class such things as fraud.
Last year Ms McVey was listed as secretary of the Loyal Scots Company Limited and reported the matter to Police in Scotland, her name was subsequently removed.