Dark Money Files director Graham Barrow says the number of companies being set up with fake details is “a national scandal of epic proportions”. The Mirror reports the cash expert said: “You need more proof of ID to get a library card than to set up a company."
Registering a limited company costs just £12, and Mr Barrow added: “About 16,000 new companies are registered every week, and I would say that around 3,000 of those will result in letters being sent by Companies House congratulating people on setting up a new company they know nothing about. Most people will just throw those letters in the bin, which could lead to problems down the line.
“These are burner companies and used by criminals, just like burner phones. It costs £12 to set one up, and then if you can get an automatic business overdraft of £8,000, that’s a pretty good return on investment for the criminals.”
