Contractors' Questions: How to cut fraud risk as a 'Ltd' company director?

Contractor’s Question: Are there any sure-fire ways of helping to reduce the extraordinarily high risk of fraud for people who direct their own limited company?

Expert’s Answer: First, check your credit file.

Always keep a close eye out for anything suspicious on your credit file. Fraudsters will often access a victim’s credit file first to see if it’s an identity worth using. By reviewing yours regularly, you can spot any suspicious activity before it is too late.

Second, think about your digital footprint. Make things more difficult for fraudsters by limiting what personal info is available in the public domain either on social media or professional networking sites.

Also, listing a business address rather than home address on public director registers is advisable. The fewer pieces of the jigsaw a fraudster can get hold of, the harder it will be for them to impersonate you. 

Lastly, don’t forget about paperwork and documents you receive through the post. This means shredding all your financial documents before you throw them away and remembering to redirect your mail if you change address or move home.

The expert’s answer is based on new guidance issued to company directors by Cifas and LexisNexis Risk Solutions.

Tuesday 20th Jun 2017
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Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
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