We reveal how rogue security firms use phoenixing to evade accountability and deceive clients. Learn how to spot unreliable UK security companies before they put your people, assets and reputation at risk.
The private security industry in the UK is meant to stand for safety, trust and professionalism. But if you’ve spent any time in the sector, especially behind the scenes, you’ll know that’s not always the case.
Sadly, there’s a growing number of so-called security companies operating under the radar. They look the part on the surface with smart websites, flashy patrol vehicles and bold promises. But dig just a little bit deeper and you’ll often find unpaid staff, unlicensed guards, no insurance and mountains of unpaid debt.
Worse still, these security firms don’t just disappear; they come back under a new name, pulling the same tricks all over again. To the eye, nothing's changed, but dig a little below the surface and you’ll see the same old scam on rinse and repeat.
Let’s talk about phoenixing, how to spot it and how to avoid being caught out by one of these cowboy security companies.
Phoenixing is when a company shuts down, usually owing money to HMRC, staff, or suppliers, and then the same people set up a brand-new company to carry on like nothing ever happened.
Different name, fresh company number, maybe a new logo, but same old story.
In the UK security companies sector, it happens far more often than you might think. A firm racks up debt, burns bridges, gets caught cutting corners… and instead of facing the consequences, they simply start again.
Here’s the cycle:
Meanwhile, clients are left with useless contracts, unpaid invoices and zero accountability.
So how do you protect yourself from rogue operators?
The good news is you don’t need to be a forensic accountant to spot the signs. A quick look at Companies House, a bit of Googling and a healthy dose of common sense can go a long way.
Here’s what to check:
Go to Companies House, search the company and look at the list of directors.
Click their names and see what other companies they’ve been involved in. If you spot a pattern of dissolved or liquidated firms, all in similar industries, it could be a classic phoenix setup.
Red flags:
Still on Companies House, check the filing history.
You’re looking for:
These are all warning signs that something's not right behind the curtain.
Even if a security firm is trading, they might file dormant accounts, which means they’re telling Companies House they’re not active. That’s a major red flag if they’re operating in the real world.
Also watch out for:
If a security company says they’re securing shopping centres or major construction sites, but their books show £400 in the bank, it’s worth asking questions.
Be wary of firms claiming “20+ years of experience” when they’ve only been incorporated for six months.
Yes, the directors might have worked in the industry before. But if the company is brand new, that’s not the same as a proven track record.
Cross-reference the directors’ history to see where that “experience” actually comes from, or whether it’s just marketing fluff.
While not every company is part of the SIA’s Approved Contractor Scheme (ACS), it’s a good benchmark of professionalism.
Use the SIA Register to check:
No listing? That’s a red flag.
Outdated licenses? Even worse.
This is where a simple credit check pays off.
Services like Creditsafe or Experian will tell you if the company has any CCJs against them, meaning they’ve been taken to court for unpaid bills.
Multiple recent CCJs usually mean trouble.
Don’t underestimate good old-fashioned Googling. Search:
Look at reviews on:
Red flags:
Working with a rogue security company doesn’t just put your money at risk; it can put your people, your reputation and your whole operation in danger.
Unlicensed guards? You’re liable.
Zero vetting means no insurance? Good luck with that claim.
Company vanishes overnight? You’re left exposed.
This industry should be built on professionalism and accountability, not on shady directors hiding behind new company numbers.
At CR2 Security, we’ve been called in countless times to clean up the mess left behind by phoenix security firms. We know the tricks. We’ve seen the damage. And we’re here to raise the bar with a trusted, secure firm you can count on.
If you’ve been let down by a dodgy security company, or if you’re not sure who to trust, we’ll step in, take control and get your security where it needs to be.
What makes CR2 Security different?
✔ Fully licensed, accredited and insured
✔ Transparent ownership – no hidden histories
✔ Stable accounts, clean records, zero nonsense
✔ Experienced managers and vetted guards
✔ Right people, right places – full accountability
Whether you’re a site manager, facilities director or business owner, your security shouldn’t be left in the hands of unreliable operators. CR2 Security is one of the UK security companies committed to doing things properly, with integrity, experience and zero shortcuts.
We’re proud to be a secure firm that businesses trust time and time again.
Call us today on 03301339142
Or email: office@CR2security.com
Speak to our team and find out how CR2 can provide tailored security services your business truly deserves.
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