What do Company Directors and Creditors need to know
Insolvency scams are a persistent and evolving threat to company directors and creditors. These scams exploit the formal insolvency process – often impersonating official bodies like the Insolvency Service or Companies House – to mislead, defraud, or pressure individuals into taking harmful actions. At Antony Batty & Company, we are fully aware of the risks and remain committed to raising awareness and protecting our clients.
Need help?
If your business is facing insolvency and you believe you have received a scam or scams, the sooner you contact us, the more we can help.
What Are Insolvency Scams?
Insolvency scams typically involve fraudulent communications – emails, letters, phone calls, or even fake websites – that claim to be from legitimate sources. Common tactics include:
- Impersonation of Insolvency Practitioners: Fraudsters may pose as licensed professionals, offering to “help” directors with insolvency filings or creditor negotiations.
- Fake Payment Demands: Scammers send letters or emails requesting urgent payments for fictitious fees, penalties, or filings.
- Phishing for Company Data: Directors may receive messages asking for sensitive company information under the guise of compliance or investigation.
- False Claims of Insolvency Status: Creditors may be told a company is insolvent when it is not, or vice versa, to manipulate financial decisions.
These scams can cause reputational damage, financial loss, and unnecessary stress, especially during what is already a challenging time for directors and stakeholders.
Our Position and Guidance
As Licensed Insolvency Practitioners, we follow the guidance issued by R3, the UK’s insolvency and restructuring trade body. We also monitor alerts from the Insolvency Service and Companies House, both of which have published detailed warnings and reporting procedures for insolvency-related scams.
We advise directors and creditors to:
- Verify all communications: Check the sender’s credentials and contact details. If in doubt, contact the organisation directly using official channels.
- Report suspicious activity: Use the Insolvency Service’s scam reporting page and Companies House’s fraud alert page.
- Avoid acting under pressure: Scammers often use urgency to force decisions. Take time to verify before responding.
- Consult your Insolvency Practitioner: If you’re unsure, speak to your appointed IP. We’re here to help.
How Antony Batty & Company Can Help
We work hard in identifying and reporting insolvency scams. Our team knows how to spot fraudulent patterns and advise directors and creditors on how to respond safely. If you receive a suspicious communication or are unsure about the legitimacy of any insolvency-related message, contact us immediately.
We believe that awareness is the first line of defence. By staying informed and vigilant, directors and creditors can protect themselves and their companies from unnecessary harm.
