Celebrity chefs targeted in identity cloning scam

Celebrity chefs, including Heston Blumenthal and Yotam Ottolenghi, have fallen victim to an identity cloning scam, as reported by BBC. The scam has targeted high-profile individuals in the food industry, resulting in identity fraud.

Heston Blumenthal and Yotam Ottolenghi, renowned chefs among those affected by new identity fraud, BBC finds.

According to information obtained by BBC News, renowned chefs such as Heston Blumenthal and Yotam Ottolenghi, along with establishments like the Ritz, have fallen victim to a sophisticated identity theft scheme targeting restaurants they own.

The scam involves cloning the identities of these esteemed eateries to establish fake businesses, which are then used to open bank accounts and apply for loans. Over 750 fraudulent firms have been registered in the past six weeks alone, often with slight variations in names or misspelled details.

An investigation has been initiated by Companies House, the UK’s company registry, following revelations provided by fraud expert Graham Barrow. Barrow asserts that Companies House lacks adequate scrutiny, allowing scammers to exploit the system easily.

For a nominal fee, fraudsters can swiftly register a bogus business online, enabling them to siphon funds from bank accounts and make high-value purchases from unsuspecting suppliers. Many of these fake businesses mimic genuine restaurants, often with minor alterations in names or addresses.

To register these fraudulent companies, scammers typically provide the identity of at least one director, often sourced from social media profiles or data leaks. Barrow criticizes the lax verification standards of Companies House, contrasting it with the stringent requirements faced by individuals for routine tasks like obtaining a library card.

He deems the current state of affairs “scandalous” and calls for immediate intervention. Although Companies House is slated to receive enhanced powers next month to combat fraudulent registrations, implementing stricter verification procedures will take time.

Mr. Blumenthal finds himself among the targeted individuals. A company has been established under the name “Dinner By Heston Blumenthall,” deliberately adding an extra ‘l’.

Similarly, Yotam Ottolenghi’s restaurant enterprise now faces imitation with the emergence of “Ottolenghii Limited,” featuring an additional letter in the surname.

Regarding this matter, Mr. Ottolenghi’s company stated to the BBC: “Any party that breaches our intellectual property rights, seeks to create brand confusion, or endeavors to profit from our reputation, will face vigorous legal action.”

Even the renowned Ritz Hotel’s restaurant, in operation since 1906, has fallen victim to identity theft. While Companies House holds records dating back to 1896 for the original business, a new entity named Ritz Restaurant Limited was registered on December 19, 2023.

In 2010, Alexis Gauthier, a renowned Michelin-starred chef located in Soho, central London, launched his French restaurant without a definitive name in mind. Consequently, he opted to use his initials, resulting in the establishment being named “APJ Gauthier Limited”.

However, to his surprise in mid-January, Gauthier received correspondence from a bank addressed to a business titled “Gauthier Soho Restaurant Limited”.

Reflecting on the situation, he humorously remarked, “It’s a better name than the one I chose.”

He expressed astonishment that the new company had been established at the same address as his restaurant, highlighting the challenges faced by independent restaurants in central London.

“Day in, day out, we strive to deliver our best, and additional hurdles like this only add to the complexity of our operations,” he lamented.

Steven, a 34-year-old junior chef, has been falsely registered as the director of 39 restaurants, prompting concerns about identity theft. To safeguard his privacy, we refrain from using his surname. When confronted with the list of restaurants, Steven expressed astonishment, vehemently denying any involvement as a director. He feels targeted and believes someone is deliberately tarnishing his reputation out of malicious intent.

Steven had been receiving numerous letters from Companies House regarding restaurant businesses but couldn’t comprehend why. He insists he has never held any directorial positions in these establishments. Moreover, one of the cloned restaurants frequently receives calls for him from individuals claiming to represent Octopus Energy and asserting his directorship.

This situation appears to be another fraudulent scheme where impostors pose as representatives from Octopus Energy to coerce companies into paying for fictitious “company details updates” at Companies House.

Octopus Energy has clarified that they do not engage in cold-calling practices with customers.

Removing his name from the register poses a daunting challenge for Steven. The process entails completing intricate forms and furnishing documentary evidence 39 times to disassociate himself from the companies falsely linked to his name.

A small restaurant chain reported receiving bank cards under the name of a “clone company director,” suggesting the creation of an unauthorized account in the restaurant’s name. This scheme allows scammers to apply for a business overdraft, withdraw the funds, and disappear.

For Steven, being a victim of identity theft is distressing, but it poses a broader issue with potential indirect costs for everyone. When criminals empty bank accounts associated with fake companies, the financial institution absorbs the losses, which may ultimately be passed on to customers.

According to Mr. Barrow, the losses are substantial, amounting to millions, even hundreds of millions. The government and Companies House are cognizant of the problem. However, Mr. Barrow believes it will take at least 18 months for comprehensive changes to take effect. Meanwhile, he continues to monitor numerous criminal networks involved in “clone company” scams targeting the UK from various locations worldwide.

Companies House expressed regret for the challenges businesses face, stating, “In the longer term, we will mandate company directors and filers to verify their identities to combat false addresses and other forms of register misuse.”

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