A recruitment company based in Shepperton, Middlesex, has been caught up in a fraud that is costing the Cash Converters chain and similar stores thousands of pounds.

Ray Wilkins, director of Recruitment Giant (RG), started to receive phone calls recently from several different police stations and stores. People have been arrested after presenting fraudulently printed cheques bearing the Recruitment Giant name. They also had timesheets, with employee numbers and claim to have been working for RG. The cheques purport to be drawn from a Lloyds TSB account, but RG does not bank with Lloyds.

None of them has any connection with RG. The cheques are worthless.

"It's very worrying," Wilkins told Recruiter. "I'd hate anyone else to get caught up in this."

The fraudsters had authentic-looking driving licences and identification, which would support their claim. In many cases, the stores have paid out 95% of the value of the cheques.

If store staff questioned those presenting cheques, they were told to get RG's telephone number through the 118 118 directory enquiry services. The 118 operators then gave callers an 0800 number. When that number was rung, someone at the other end would confirm that the individual worked at RG. "I don't know how the 118 118 service can give out a number like this," Wilkins said. "It never checked with us."

Wilkins added: "This may have serious repercussions on our good name, and we feel that 118 could have done more, given that it never contacted us for permission. Our correct number and details are contained on our website."

RG, an IT and banking recruiter set up last year, has not incurred any loss. Wilkins said he rarely pays agency workers by cheque.

Jim Spratley, company secretary at Cash Converters, said he was not aware of the problem.

It is not known if any other recruiters' names have been used in the fraud.

Cash Converters is largely a franchise business. RG has put a notice on its website warning about the fraud.