Intellectual Property Office warns businesses over rise in misleading requests for payment
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Posted: Wed 31st Jul 2024
Businesses have been urged to be wary of unsolicited payment demands for registering intellectual property following a 63% rise in the number of misleading payment requests reported to the Intellectual Property Office (IPO).
The IPO said from April to June 2024, it received 138 individual reports, compared to 85 in the same three months last year. So far in 2024, there have been 169 reports, compared to 278 in the whole of 2023.
The misleading requests are typically invoices asking payment for trade marks, designs, or patents services. The IPO said that once paid for, the services are often never provided or are of little or no benefit, such as inclusion on an 'exclusive online register' not being recognised by the IPO or any other official body.
Invoices might also request payment at a highly inflated price for services available for a much lower fee or free of charge from the IPO.
Organisations will usually not be recognised by the recipient, and the requests may be accompanied by a copy of a fraudulently 'signed' agreement, in the hope the payment will be automatically approved.
To help businesses spot a misleading invoice, the IPO has released examples of misleading invoices [download the document here], and published an updated list of names known to be used by unsolicited organisations as part of updated guidance on avoiding misleading payment requests.
Caroline Rich, IPO head of customer experience, said:
"Bad actors are becoming more creative and persistent in their efforts to target our customers with misleading payment requests. Once payment is made, there is little chance of getting your money back, as those involved often operate across international borders, making enforcement action difficult.
"The recent examples we're seeing can be very convincing at first glance, so it's important to remain vigilant.
"Our clear advice is to not pay such invoices, and always report them to the IPO. To help customers know what to look out for, we've released images of some recently reported to us.
"Customers with any doubt about a payment request should always get in touch with us [email misleadinginvoices@ipo.gov.uk], and anyone who believes they may have been a victim of fraud should report this to the police."
Nik Adams, temporary assistant commissioner for City of London Police, said:
"If you receive an email or invoice that you think might be a scam, don't respond to it, click on any links, or send payment. If you think you have been a victim of fraud, report it to Action Fraud or by calling 0300 123 2040.
"If you are in Scotland, I ask that you report fraud directly to Police Scotland by calling 101.
"By reporting phishing scams and suspected fraud you are directly helping us in our work to identify and stop these criminals and helping us protect others from these scams."
The IPO is the latest government organisation to recently warn businesses about potentially fraudulent activity.
The Valuation Office Agency said founders should look out for false claims by agents that the deadline to appeal business rates valuation was 30 June, and HM Revenue & Customs said a new VAT email scam encourages recipients to scan a QR code and share their personal details which could lead to money being stolen.
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