A concerning trend has emerged in the UK’s culinary landscape, with a number of prominent restaurant operators falling victim to a sophisticated cloning scam.
Over the past six weeks, more than 750 fake firms have been clandestinely registered and often bearing misspelled names, prompting an urgent investigation by Companies House. According to BBC News, renowned figures like Heston Blumenthal, Yotam Ottolenghi, and establishments like The Ritz have fallen victim to fraudsters exploiting their identities to open unauthorized bank accounts and apply for loans.
Shedding light on the gravity of the situation, fraud expert Graham Barrow criticized Companies House, labelling it as “not fit for purpose” and advocating for more stringent verification procedures.
The scam involves the creation of ‘clone restaurants’ which mirror authentic businesses, however there are often minor alterations in names or addresses. One example is the registration of “Zizzi Caambridge” which was incorporated in January 2024, closely resembling the legitimate Italian chain Zizzi in Cambridge.
To register these fraudulent entities, scammers must provide the identity of at least one director, a requirement that they likely fulfil by sourcing names from social media profiles or data breaches. Barrow emphasized the alarming rise in identity theft, pointing out the laxity of Companies House’s verification protocols compared to the stringent documentation required for tasks such as opening a business bank account or applying for finance.
Despite impending regulatory changes granting Companies House enhanced powers to combat fraudulent registrations, the implementation of more rigorous checks will take time. In the meantime, reputable establishments like Ottolenghi’s have found themselves grappling with clones, such as “Ottolenghii,” bearing striking resemblances to their brands. Ottolenghi’s company issued a stern warning, vowing to take robust legal action against any infringement of their intellectual property or attempts to exploit their brand reputation.
As the culinary sector grapples with the repercussions of this elaborate scam, stakeholders are left demanding swift and decisive action to safeguard against further exploitation and preserve the integrity of their businesses.