There has, unfortunately, been an increase in scams within our industry of late. This typically involves a fictional individual contacting a recruitment business (on behalf of a company) to see if you can source some contractors. This company may well be visible on Companies House; however, the company does not know they are being used as part of a scam.
Following this, you will be contacted by the company again, asking if you can payroll a couple of contractors ….. and then again to see if you can payroll a few more. These contractors may well be legitimate individuals, but again they have no idea that their identity is being used, and therefore themselves are victims of fraud.
Typically, the company will be seeking 30 days credit terms. The contractors will be paid quite punchy daily rates, and often working 7 days a week. It only takes a couple of weeks for 10’s of thousands of pounds to be racked up, at which point, you will not hear from your point of contact again.
These scammers can be extremely sophisticated. Please be careful when carrying out your due diligence checks.