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IPs are concerned that that criminals could use the new online bankruptcy system
to blackmail innocent people, threatening to make them bankrupt unless a
“ransom” is paid.
The Insolvency Service is proposing to make it a criminal offence to impersonate
a debtor when filing a bankruptcy application via the internet.
It wants to be “preventative” not “responsive” with plans to force through a law
in the coming weeks.
Although it isn’t necessarily anticipating a surge in criminal activity with
organised criminals using online petitioning, the service wants to send a
message that this type of fraud will be dealt with seriously.
Even if the latest changes become law it remains to be seen how the service can
ensure identities won’t be stolen.
Chris Laughton, insolvency and restructuring partner at accountants Mercer & Hole, believes
it depends on the level of training, experience and structure of the people
approving the petitions.
He commented: “What is the system going to be to make sure the people who are
checking bankruptcies are doing it sensibly?”.
Some IPs said they needed at least two years’ experience before they could sign
insolvency letters.
The service admits there is no new training for people to approve bankruptcy
applications, however it has “rigorous” continuing professional development
procedures in place and the organisation trains its staff “stringently” on
personal insolvency procedures.
“This is the first time the process is going online so there will be no one with
experience on how to do it. We are working closely with the courts and will be
using their methods on how to check the applications,” explained an Insolvency
Service spokesman.
Source:
Getting Paid
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