The Keoghs enforcement team is urging insurers to stay vigilant following a rise in fraudulent activity involving individuals impersonating a County Court bailiff. These scams are targeting insured businesses by demanding payment for judgment debts, often using convincing but fake documentation and high-pressure tactics.
A scam uncovered
In one recent case, our team was asked to assist an insured company with a query about a newly entered and unpaid judgment. Shortly after resolving the issue, we received a call saying the County Court bailiff was demanding immediate payment.
Our investigations quickly revealed several red flags:
- No Notice of Enforcement: Bailiffs and High Court Enforcement Officers (HCEOs) must issue a Notice of Enforcement before contacting a debtor. No such notice had been received.
- Debt value too high: The debt was £22,800. A County Court bailiff can’t enforce a judgment of more than £5,000.
- Suspicious email: The fraudster used an email address that closely resembled a legitimate court domain but contained subtle differences. Amongst other inconsistencies throughout the email, the company number provided was also unregistered.
- Aggressive tactics: The scammer threatened to seize assets, a move designed to panic businesses into paying quickly. For any company, the idea of enforcement officers arriving unannounced - and the potential damage to their credit file - is a serious concern.
The insured was about to pay until we swiftly intervened, saving the insurer a double payout of £45,600 for both the fraudulent payment and the legitimate judgment debt.
What to watch out for
Here are six key checks to help spot a fake bailiff or HCEO:
- Notice of Enforcement: Has one been received? If not, request a copy and carefully check it. A bailiff or HCEO must give at least seven days’ notice before attending premises, and this must be contained within the Notice of Enforcement.
- Contact method: If the only contact is via email or phone - and no one has attended - be extremely cautious.
- Email address: If content is made by email check it carefully against legitimate court domains. If unsure, seek advice.
- Bailiff identity: Verify the name with the relevant court or check the bailiff register at certificatedbailiffs.gov.uk. However, bear in mind that this is not foolproof – it is relatively easy for scammers to check this register and simply use a name. For HCEOs, ask which agency they work for and call that office to check they have an officer with that name. Always check online for telephone numbers and do not rely on what is provided by a potential fraudster.
- Letterhead details: Look for formatting inconsistencies. For example, the letter provided in our example was set out differently to the usual court format.
- Draft certificates: If you receive a draft certificate of satisfaction or cancellation, be wary. Courts do not issue these.
Remember, real bailiffs and HCEOs will always provide information to confirm their identity. If your insured receives a demand for payment and something doesn’t feel right, fully check the details and, if you’re still unsure, seek legal advice immediately.
