Earlier this year directors of the company, which has a £500,000 turnover, discovered that a set of accounts had been filed for their company showing an £800,000 operating loss alongside a note stating it was likely a receiver would be appointed shortly.

It is believed that it will take the company’s directors weeks to go through the courts to remove the false accounts.

The disturbing development follows concerns over the fraudulent use of director’s identities to set up bogus companies, and the lack of protection afforded to auditors’ details. Last month we revealed that one auditor a month has details stolen to help front fake businesses.

Martin Williams, managing director of credit rating agency Graydon, said the development was ‘very worrying’, and argued that businesses must take up the online filing system available with Companies House, known as PROOF, as paper filing is not safe.

‘In the meantime, that poor company must suffer the possible consequences of a prospective client/supplier checking them out at Companies House.’

The protection and monitoring of the use of director and company details has proved to be controversial.

Changes proposed in the company Law Reform Bill could see Companies House more proactively monitoring online changes to company details. A Companies House spokesman would not confirm details of the case, but said PROOF was designed to give companies control of their filing.

The Metropolitan Police, which is thought to be investigating the case, would not comment.