Working with the London Borough of Camden, Experian analysed the bin contents of 71 companies in the Camden area for documents that could aid identity fraud.

The research revealed that 44 per cent of the companies surveyed disposed of whole invoices and almost half (45 per cent) threw away complete sheets of headed paper containing full company details.

Furthermore, 20 per cent of the businesses surveyed disposed of their company’s bank account details without first defacing them and 24 per cent threw away papers containing a Director’s signature.

Bin raiders in London are reportedly paid up to £5 per document and it is feared that the proceeds are funding other criminal activities. Phil Cotter, Managing Director of Experian’s business information division, said: "In some cases, fraudsters change the registered address and directors of a company by submitting false Companies House forms."

He added: "In other cases they simply trade as the company they are impersonating from an alternative trading address. The also re-use genuine company logos and similar website domain names to masquerade as a genuine well known business."

Under the Data Protection Act, companies must dispose of client data confidentially, but many businesses appear to be in breach of this obligation. "By securely disposing of confidential information companies can help protect themselves, their employees and customers," Cotter advised.