Companies House glitch raises concerns over data integrity

The recent disclosure of a software glitch at Companies House has raised important questions about the reliability and security of the UK’s corporate register. For many business owners, this incident is a timely reminder that even core government systems are not immune from failure.

The issue centred on a flaw within the WebFiling service that could have allowed unauthorised access to company records. While fixed, it highlights the need for constant monitoring of corporate filings.

The importance of data integrity

The UK's corporate register is a fundamental pillar of the business environment. Lenders, investors, suppliers, and credit reference agencies rely on the accuracy of Companies House data to make critical financial decisions. If the integrity of this data is compromised—even briefly—it can have serious commercial consequences.

For example, if an unauthorised party were able to change a company's registered address or appoint a fraudulent director, they could potentially intercept sensitive correspondence, open bank accounts in the company's name, or take out loans fraudulently.

Protecting your company

While Companies House is responsible for the security of its platform, directors have a legal duty to ensure their company's public record is accurate. There are several steps you can take to protect your business:

• Sign up for PROOF: The PROtected Online Filing (PROOF) scheme is a free service provided by Companies House. Once registered, Companies House will reject any paper forms for changes to your company (such as director appointments or changes of address) and will only accept submissions made electronically with the correct authentication code. This significantly reduces the risk of paper-based fraud.
• Monitor your record: Regularly check your company's record on the Companies House website. Ensure that all listed directors, shareholders, and addresses are correct.
• Set up alerts: You can register for the free 'Follow' service on the Companies House website. This will send you an email alert the moment any document is filed against your company, allowing you to react immediately if an unauthorised change is made.
• Keep codes secure: Treat your WebFiling authentication code like a bank PIN. Do not share it unnecessarily, and change it immediately if you suspect it has been compromised or if a key staff member leaves the business.

The recent glitch serves as a warning that digital security requires constant vigilance from both the government and individual business owners.