Insolvency Service warns people to be on their guard against fraudsters impersonating the agency and its staff
The Insolvency Service has seen an increase in fraudsters targeting people who have previously suffered a loss on an investment.
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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 [email protected]. No official Insolvency Service email addresses or websites will use a domain ending in ‘.co.uk’, ‘.com’ or similar
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Do not respond to any calls, letters or emails from people offering to help in the recovery of a lost investment for an upfront “refundable” fee or charge
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Do not provide details of your bank account if asked to by people you do not trust
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Be extremely cautious when asked to transfer money to an individual’s personal account or an account in a different company’s name to the one you have been contacted by
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Be aware of scam letters, an example of which can be seen here -
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Please refer to the scams page which will be updated as we receive new information.
Further information
If you are unsure if something is genuinely from the Insolvency Service, please contact our Customer Services Team on 0300 678 0015.
Please also report scammers impersonating the Insolvency Service to Action Fraud online or by calling 0300 123 2040. Any report of fraud is protected by law and cannot be shared with anyone else outside of law enforcement agencies so the fraudsters will not know you are a victim.
If you have paid via bank transfer or money transfer, this guide from the Lending Standards Board explains the circumstances in which you will be eligible to get your money back. You may also wish to contact your bank directly.