11:11 AM, 9th August 2022, About 2 months ago
Landlords would have lost more than £1 million over the last year without anti-fraud tech picking up fraudulent tenancy applications during the referencing process, research from Goodlord reveals.
The lettings platform says that 20% of applicants flagged by their anti-fraud technology in the past year were then confirmed as being fraudulent by its specialist team.
Based on average rental costs and minimum contract lengths, this meant that landlords would have been out of pocket by more than £1 million, had the fraudulent applications not been picked up.
The most common types of tenancy fraud involve providing false or doctored identification, Right to Rent, income, or landlord or employment references.
But new tech-powered tools which use AI, open banking and identity verification can help pinpoint suspicious documents and prevent fraudulent information from being submitted.
Blake Richmond, the managing director of referencing at Goodlord, said: “Agents and landlords have long been alert to the risk of fraud and, unfortunately, a small number of criminals and dishonest tenants now have access to tools that mean fraud is getting harder and harder to detect.
“However, the technology we can use to fight back is even stronger.”
He added: “At Goodlord, we deploy in-house ID technology like banks and airports are using to spot and stop dodgy applications as well as an entire team that’s dedicated to managing fraudulent applications and, in the last year alone, this has saved landlords over £1 million – a reminder of just how important anti-fraud measures are during the referencing process.”
Richmond recommends agents and landlords focus on three key areas when it comes to combatting fraud:
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