Watch out - there's identity theft about.

Small businesses are being targeted by fraudsters pretending to be Companies House officials who then try to steal their identity.

The Federation of Small Businesses (FSB) claims that fraudsters have targeted small businesses to try to get hold of secure authentication codes for Companies House files, which could then be used to set up fake companies and to steal money, goods and services.

Fraud Warning

Companies House, which set up a secure online system for company filing following problems with identity fraud in the past, has posted a notice on its website confirming that they will never contact small businesses by telephone to ask for authentication codes.

The 'Urgent Fraud Warning' says:

Authentication Codes for WebFiling

There have been instances recently where Companies House customers have been contacted by someone claiming to be from Companies House, asking for verification of their WebFiling Authentication Codes.

Please be aware that Companies House personnel will never contact you by telephone to try to ascertain your WebFiling Authentication Codes.

Should anyone contact you claiming to be from Companies House please try to obtain a return telephone number and contact us immediately.

Unsolicited calls

The FSB claims that this practice is still rare but advises small businesses to be on their guard and take preventative measures to protect their firms' identity.

David Croucher, FSB Home Affairs Chairman, said: "Company identity fraud, though still mercifully rare, is on the increase and can go undetected for a long time. When it does happen it can be devastating for small firms and in the worst cases, businesses can go bust because of it.

"Trying to recoup money and sensitive information once it has been stolen is far harder than protecting it in the first place.

"We urge all small business owners to look after company details carefully and not to respond to unsolicited calls from people saying they are from Companies House and asking for private information. Small business owners that receive such calls should try to obtain a return contact number and contact Companies House immediately."