Fraud type · Identity fraud
Business identity fraud: who are you really talking to?
The company exists and is healthy. But the person who emails, calls or meets you is not who they claim to be, or is not allowed to represent the company at all.
What is business identity fraud?
Short answer: someone uses the name of an existing company, or of a real person within it, to obtain an order, a payment or a contract. The company itself is often the first victim: its name, number and good reputation are borrowed.
The variants
- The fake employee: a “buyer” or “account manager” who doesn’t work for the company. See Ordering in someone else’s name.
- The fake director: an email or call from “the boss” who urgently wants a payment made. See CEO fraud.
- The cloned company: a fake domain, website and letterhead. See Spotting a clone company.
- The unauthorised representative: someone who exists but may not sign for the company.
- The straw man: a director on paper only, while someone else makes the decisions.
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9 red flags
- The person isn’t listed anywhere at the companynot in the register, not on the website, not on LinkedIn.
- Email or phone don’t belong to the companyaccording to the register or official website.
- Contact only by email or mobileand never via the company’s landline.
- An ID document as a photowith blurred edges, an odd font or a photo that looks pasted in.
- A power of attorney or signaturethat doesn’t match the directors in the register.
- The person refuses a video callor always has a reason not to meet.
- Different delivery address or bank accountfrom the register.
- Pressure and secrecy: “don’t discuss this with anyone”.
- A recent change of directorjust before the first big order.
One red flag is not proof. If you see two or more, stop and check further first.
Checklist: how to check a person and their authority
- Look up the company in the register and note who the directors and representatives are.
- Call the company’s landline that you looked up yourself and ask for the person.
- Compare the email address letter by letter with the domain of the official website.
- For a contract, ask who may sign and check it in the register or via a power of attorney you confirm with the company.
- Check an ID document for security features; the EU’s public PRADO register shows examples of genuine documents.
- For large amounts, schedule a video call or a visit.
- Record what you checked, with date and source.
What to do if it goes wrong
- Stop deliveries and payments and warn your bank.
- Contact the real company via the number in the register; they are often victims too.
- Report it to the police and keep all emails, messages and documents.
- Handle the copy of the ID document you received carefully.
Let Safetybizz check it
Safetybizz checks whether your contact person, email address, phone and bank account really belong to the company, and who may represent the company according to the register.
Frequently asked questions
How do I know whether someone may sign for a company?
Check in the company register who is a director or representative. If someone else signs, ask for a power of attorney and confirm it with the company via a number you looked up yourself.
Is a copy of a passport enough?
No. A copy is easy to fake and says nothing about authority. Combine it with a register check and contact via the company’s landline.
What is PRADO?
A public register of the Council of the EU with descriptions and security features of identity and travel documents from European and other countries.
Read also
- CEO fraud
- Ordering in someone else’s name
- Spotting a clone company
- Fake emails, invoices and bank details
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This page is general information and not legal advice.