The Insolvency Service launched an investigation into Watford based Paragrim Ltd, which traded as the Mediacraze.net website, after complaints that the website was not offering any services but was simply a front for collecting unauthorised direct debits.

Paragrim was set up in March 2022 by founder Maria Rowley who later resigned as a director in February 2023. She was replaced by Mandy Hutchinson the same month and last December the business was put into liquidation.

A simple search on Google produced a string of reports identifying Mediacraze as a scam.

People questioned the veracity of free 'Sky subscriptions' while others said they had bought new mobile phones and when they were setting them up and transferring data via the phone’s settings, a message stating ‘authorise now’ redirected them to Mediacraze to confirm the account. An immediate £1 payment was deducted after the card details were entered. This kicked off the recurring direct debits.

The company has now been shut down after it deliberately misled consumers into providing bank details for what they assumed were everyday online purchases, such as car parking or television streaming services.

After being duped into logging in to the Mediacraze website, customers later discovered they had been signed up to monthly direct debit payments without their permission. These proved extremely difficult to cancel on the website.

Consumers were often misdirected to the website after scanning QR codes on their mobile phones.

They were charged a small fee for a five-day ‘free’ trial without their authorisation before being signed up to pay £29.99 each month.

Investigators discovered that Paragrim, based at an address on Nascot Place in Watford, was managed on behalf of an unnamed Canadian businesswoman.

Paragrim failed to co-operate with the Insolvency Service’s investigation. In addition, the company never filed accounts which had been due on 21 December for year end 31 March 2023 as the company was wound up.

Investigations by the Insolvency Service are ongoing with work focusing on the amount and whereabouts of the stolen funds.

Mark George, chief investigator at the Insolvency Service, said: ‘The actions of Paragrim Ltd in manipulating customers were highly deceptive and dishonest.

‘Unsuspecting consumers were signed up to a membership scheme which they did not want or indeed think they were paying for, leaving them out of pocket. 

‘The Insolvency Service will not hesitate to take robust action to protect consumers and we would encourage everyone to be vigilant against scams such as this one.’

The Mediacraze.net website has been completely shut down and the company has been liquidated following a winding-up order at the High Court on 5 December 2023.