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Fraudsters have been impersonating Insolvency Service staff through scam emails, letters and phone calls
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The scammers contact individuals who have lost money in previous investments, claiming to be from the Insolvency Service
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The Insolvency Service will never ask for an upfront fee or authorise another company to recover money lost in a previous investment for an upfront fee
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Guidance has also been provided on how people can avoid falling foul of these impersonation scams
The Insolvency Service is warning the public to be vigilant after criminals have impersonated its employees to scam unsuspecting victims of previously failed investments.
Fake Insolvency Service letters sent by fraudsters claim the agency has authorised third-party companies to help with the recovery of lost investments. The companies named in the scam letters, which are registered on Companies House, are also being impersonated.
In 2024 alone, there have been more than 300 complaints highlighted by the public where the Insolvency Service and its staff have been impersonated in this way.
The scammers use high-pressure tactics to obtain upfront charges or fees from the victims, under the pretence that they are refundable, which they claim to be for tax, third-party fees or other administrative costs.
Where victims are persuaded to transfer money, the fraudsters provide them with bank account details in the name of unconnected third parties and limited companies. The victims are told to lie to the banks if the transfer is queried.
Dave Magrath, Director of Investigation and Enforcement Services at the Insolvency Service, said:
Fraudsters maliciously tricking vulnerable people into believing they are helping them to recover money will not be tolerated by the Insolvency Service.
In the last 12 months we have shut down 30 scammer telephone numbers and a further 24 email addresses and websites. We continue to work with the police and Action Fraud to share intelligence and pursue these offenders.
But we need the public's help to stop this criminal behaviour. It is vital that they report any suspicions so that action can be taken against the perpetrators. Fraud is a very serious crime and tackling financial wrongdoing is a key priority for us as an agency.
Fraudsters have sent fake letters featuring the Insolvency Service logo, telephone numbers appearing to be linked to the Insolvency Service and fake signatures of staff members.
They have also used fake email addresses and made cold-calls, pretending to be from the Insolvency Service or from other companies they are impersonating.
The scammers contact individuals out of the blue who have lost money they have invested, in many cases because the company they have invested in has entered formal insolvency. They offer to help recover the money that has been lost but request an upfront fee to get it back.
Victims are asked initially to transfer around 10% of the loss they suffered in their initial investment and are contacted repeatedly by the scammers in an attempt to persuade them to transfer more money.
A new 'scams' page has been set up by the Insolvency Service on GOV.UK, highlighting the warning signs for the public to look out for and signposting support and guidance.
How to protect yourself against impersonation fraud
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All genuine Insolvency Service email addresses follow the format firstname.surname
