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How to Spot Applicant Fraud

Landlords need to know what to look for in the applications they receive and how to protect themselves from potential fraud. Below is a list of the industry's most common types of fraud and the best way to prevent mistakenly renting to a false identity

Protecting Your Real Estate Investment

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 rising. Landlords need to know what to look for in the applications they receive and how to protect themselves from potential fraud. Below is a list of the industry's most common types of fraud and the best way to prevent mistakenly renting to a false identity.

First-Person Fraud

This fraud occurs when an applicant uses a friend or family member's information to apply for a rental. The information submitted is correct, but it belongs to someone who never plans to reside 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. It occurs when an independent, 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 fake or somewhat altered social security number in their otherwise legitimate birth date.

Synthetic Fraud

Finally, synthetic fraud is an entirely faked identity. It typically consists of stolen and fabricated information. Here, scammers often use the social security number of a deceased person.

The Best Way to Prevent Fraud

A comprehensive background check is usually all you need to protect yourself from fraudulent applicants. CreditLink's monthly subscription package includes three screening methods, including identity verification. A comprehensive criminal history, eviction, and credit report will help you 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!

Created on: 03/17/24

Author: CreditLink Secure Blog Team

Tags: rent scams, squatters, fake id, third , first-person fraud, third-party fraud, synthetic fraud,

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