Common Cases of Tenant Fraud and How to Prevent Them

The rental industry is rapidly shifting toward an entirely remote rental experience. While virtual tours and online applications have made the process easier for landlords and renters, reports of fraudulent applicants are on the rise. It’s essential for landlords to know what to look for in the applications they receive, and how to protect themselves from potential fraud. Compiled below is a list of the most common types of fraud in the industry, as well as the best way to prevent mistakenly renting to a false identity.

First-Person Fraud

This form of fraud occurs when an applicant uses a friend or family member’s information to apply for a rental. The information submitted is all correct, but it belongs to someone who never plans on residing at the property.

Third-Party Fraud

This is when an applicant attempts to pass stolen information off as their own, otherwise known as Identity Theft. A separate, unaware individual’s identity or personal details are used without their consent or knowledge. It also includes manufactured identities, with the fraudster creating a new identity using stolen and false information.

Identity-Manipulation Fraud

Identity-manipulation fraud refers to an applicant changing their personal information slightly. This may include a wrong number in their otherwise legitimate birth date or social security number.

Synthetic Fraud

Finally, synthetic fraud is an entirely faked identity. It’s typically a mix of stolen and fabricated information. Here, you’ll often find scammers using the social security number of someone who is deceased.

Protect Yourself from Fraud

Often, a comprehensive background check is all you need to protect yourself from fraudulent applicants. CreditLink offers three different methods of screening, all of which include identity verification. A comprehensive criminal history, eviction, and credit report will help you to identify and verify that your tenants are who they claim to be, with factual information provided by government agencies, law enforcement, and TransUnion.

Create your account and protect yourself from potential fraud today!