There has been a sharp increase in insolvency scams targeting creditors in the UK, with fraudsters posing as licensed insolvency practitioners to obtain money or sensitive information.
R3, the Association of Business Recovery Professionals, recently reported several instances of scams aimed at creditors of both companies and individuals in formal insolvency processes. At the same time, our own insolvency team has been contacted by businesses who received unsolicited correspondence that appeared legitimate at first glance – often using real names and professional contact details.
How these scams work
Fraudsters are becoming increasingly sophisticated. These schemes often begin with an unsolicited phone call or email from someone claiming to be an insolvency practitioner. The communication may include:
- The name of a genuine insolvency practitioner
- References to a real company that has entered liquidation
- Copycat email domains or a falsified letterhead
- Promises of a return on old investments or debts
The aim is to persuade the creditor to either make a payment, disclose personal or financial information, or sign authority forms that could later be misused.
In one recent case we advised on, a creditor who had previously invested in a company that went into liquidation several years ago received an email claiming to be from the company’s liquidator. The correspondence suggested there was now an opportunity to recover funds from the estate. The email used the correct name of a qualified insolvency practitioner and looked legitimate at first glance. Fortunately, the creditor sought advice before responding and avoided any financial loss.
Common warning signs of insolvency scams
If you’re a creditor or business owed money by an insolvent company, it’s essential to stay alert. Look out for these red flags:
- Unsolicited contact – genuine insolvency practitioners rarely reach out without prior involvement or notice.
- Unrealistic promises – claims that you can recover your full debt, or receive unexpected funds, should raise immediate suspicion.
- Requests for payment or personal information – be cautious if asked to “verify your details” or “release administration fees”.
- Generic or unofficial email addresses – check for slight misspellings in domains or inconsistent formatting.
- Pressure to act quickly – scammers often use urgency to prevent victims from verifying authenticity.
If any of these apply, take a step back before responding or sending money.
What to do if you suspect an insolvency scam
If you receive unexpected contact claiming to be from a liquidator, administrator, or trustee, do not respond or click on any links. Instead:
- Save a copy of the message.
- Do not make any payments or provide information.
- Contact your solicitor or an accredited insolvency practitioner to verify the claim.
Acting quickly can help prevent financial loss and assist authorities in shutting down fraudulent operations.
Seeking advice?
While most insolvency processes are carried out by legitimate, regulated professionals, the recent increase in fraudulent activity highlights the importance of vigilance and early legal advice.
If you’ve received unexpected contact about an old debt or liquidation, our Insolvency Team can help you verify its legitimacy and advise on your next steps — before any harm is done.
Get in touch with our team today for specialist advice, speak to a member of our team on 0800 118 1500 or complete the form below.
Disclaimer
This blog was written by Stuart Turner, Director & Solicitor in our Dispute Resolution Team. The contents of this blog, or any other published by Talbots Law, cannot be considered as legal advice so you should take no action without prior consultation with a qualified solicitor or legal professional. The contents of this blog refers to the process in England and Wales.