Current location:Culture Channels news portal > politics
Sharp rise in rental fraud including faking payslips, as tenants seek to fight off competition
Culture Channels news portal2024-05-07 20:34:35【politics】6People have gathered around
IntroductionSecuring a rental property has been a competitive business for tenants in recent years as demand con
Securing a rental property has been a competitive business for tenants in recent years as demand continues to outstrip supply.
With that competition comes the need for tenants to present themselves in the best possible light to landlords if they are going to seal the deal.
However, the lengths some would-be tenants are prepared to go to has taken a turn in the past year amid a sharp rise in the amount of fraud, including producing fake payslips.
The amount of fraud among tenants jumped 141 per cent last year compared to 2022, according to analysis by referencing experts Goodlord.
Some tenants are resorting to fraud in order to secure a new home amid a fiercely competitive rental market
It suggests some tenants feel they have no option but take extreme steps to ensure they are in the running for a rental property.
Goodlord analysed a sample of 300,000 tenancy applications from 2022 and compared it to a similar number last year.
In 2022, 1.2 cases of fraud were picked up for every 1,000 applications. Last year, that rose to 2.9 cases in every 1,000, a rise of 141.6 per cent annually.
RELATED ARTICLES
- Previous
- 1
- Next
- Homes listed for sale hit 2024 record before Easter,... Take a look inside this lovingly restored 1960s landmark... Tenants prioritise ease of commute, pushing up rents in... Inside the £1.2M Northamptonshire church conversion for sale...
Share this article
ShareThe most common form of fraud detected in the data was payslip fraud.
This is where tenants either boost their income or edit its source, such as changing a company name.
And the methods being used to carry out this type of fraud range from basic editing through to the use of software, such as photoshop.
The fraud doesn't stop at fake payslips. Other fraud picked up during the past year by the fraud fighting experts includes false passport images.
Others flagged up as suspicious on an application include salary declarations not matching up with bank statements.
And there may also be employer references from companies that don't exist or doctored documents where different fonts are used.
Last year, Goodlord claimed that payslip fraud accounted for 58 per cent of all fraud cases detected, and that just one of these slipping through could cost the agent a lifetime landlord value of £10,000.
While referencing teams can be trained to spot inconsistencies in tenant applications, fraud can also be detected with the help of Open Banking and AI tools, which can help spot repeat offenders.
What do fraud experts look for?
Through a combination of tech and human review, certain things can flag a tenant's application for a rental property as suspicious.
These include:
- Salary declarations not matching up with bank statements
- Photos on ID documents not matching up with the 'selfie' photo confirmation that an applicant submits
- Irregularities flagged by Open Banking
- Doctored documents, such as seeing misalignments or different fonts on documents
- Employer references coming from companies that don't exist
What happens if an application is fraudulent?
As well as blocking an application, any fraudulent information or documents provided by a prospective tenant is 'logged internally for future use' so any future incidents can be picked up quickly, according to Goodlord.
Details of tenants involved in confirmed fraud are also added to CIFAS, the national fraud database.
This could have serious implications for applicants if they try to apply for certain types of finance in the future.
Details of tenants involved in confirmed fraud are added to the national fraud database, which could have serious implications for applicants if they try to apply for finance in the future
Nishma Parekh, of Goodlord, said: 'Fraud can come in many forms. In some instances, tenants who are desperate to secure a property think bumping up their salary will help seal the deal.
'Given the current pressures on the housing market, it's understandable as to why we're seeing a rise in this type of fraud.
'However, this is inadvisable as you could end up on the National Fraud Database, impacting future job prospects and other life events such as securing loans.
Given the current pressures on the housing market, it's understandable as to why we're seeing a rise in this type of fraud. However, this is inadvisable as you could end up on the National Fraud Database, impacting future job prospects and other life events such as securing loans Nishma Parekh - Goodlord'And, of course, there is also a much darker side to fraud, such as criminals using false IDs to secure properties, or people who are looking to sign tenancies using forged documents.
'As the tools used to commit fraud grow more sophisticated and personal information is increasingly digitised, it's vital that landlords and agents can access the cutting-edge technology designed to fight back - ones that can protect them and ensure they can let their properties out in good faith.
'Through integrations with payroll providers, HMRC, the fraud database and Open Banking, skilled teams and tech solutions are helping tackle fraud, making it increasingly hard for bad actors to game the system.'
It comes amid a sharp rise in rental values since the start of the pandemic.
Among the latest findings, Zoopla suggested that rents have risen 29 per cent since just before the start of the pandemic.
While the rate of growth in rental prices has eased during the past year, they are still significantly higher than four years ago, the property website said.
The average rent in Britain was £948 a month in January 2020, and has risen to £1,223 today, the property portal says.
North London estate agent Jeremy Leaf,said: 'The increase in fraud or potential fraud is unsurprising because we have noticed in our offices over the past few years a definite uptick in attempts to defraud the system. Fraudsters are becoming very sophisticated and it can be difficult, without specialist knowledge or equipment, to see through it.
'However, one has to try, relying on letting agents who should have a good idea of what to watch out for, as well as using your own intuition.
'Reference agencies are relying on biometric facial recognition to sort the good from the dishonest. This is complemented by AML regulations, which HMRC are very keen to toughen up, to make sure as little as possible falls through the cracks because detection rates have been so low among property people in recent times.
'We heard of one case recently where a tenant had rather amateurishly tried to distort their bank statements in terms of changing the dates. It was hard to tell apart from the typeface they used was slightly different and when challenged they withdrew their application.'
> Are you a landlord that was a victim of rental fraud? Get in touch: [email protected]
Read more:- editor@thisismon...
Address of this article:http://reunion.whetstonetavern.com/article-47e199945.html
Address of this article:http://reunion.whetstonetavern.com/article-47e199945.html
Very good!(73)
Related articles
- Donald Trump calls Joe Biden weak on antisemitism, ignoring his own rhetoric
- Purrfect place to hide! Brain teaser challenges you to spot the cat among all the ice cream cones
- Chiefs owner: Leaving Arrowhead is an option after rejected sales tax
- Vanessa Feltz's love interest Stefan
- An inquiry into a building fire in South Africa that killed 76 finds city authorities responsible
- The tunnels have EYES! Inside the hidden 100
- The Bears see bigger things in store after drafting QB Caleb Williams, WR Rome Odunze
- Milla Jovovich talks babysitting for Fifth Element co
- Larsa Pippen flashes diamonds on THAT finger while out with on
- Shedeur Sanders shines, new transfers step up in Colorado's spring game on rainy and cool day
Popular articles
Recommended
RuPaul's Drag Race Australia judge Rhys Nicholson lists unique Coburg townhouse for $850K
Sheffield United becomes first team relegated from EPL after heavy loss at Newcastle
Vanessa Feltz's love interest Stefan
Anne Hathaway shares details about 'explicit' intimate scenes in her upcoming Prime Video rom
Nonprofit Chicago production house Invisible Institute wins 2 Pulitzer Prizes
Rams hope they drafted a new defensive core in post
3 children in minivan hurt when it rolled down hill, into baseball dugout wall in Illinois
South Africa will mark 30 years of freedom amid inequality, poverty and a tense election ahead
Links
- Xi to Chair China
- Scenery of Shahu Lake scenic area in Ningxia
- China, Central Asia Ready for Milestone Summit to Build Closer Ties
- Exhibition featuring Bronze Age civilizations held in Chengdu
- Xi Focus: Xi Inspects Xiong'an New Area, Urges New Progress for 'City of Future'
- Xi Holds Talks with Eritrean President
- A glimpse of lotus flowers in China
- First Shangri
- Grand Canal to get refilled with water in all dried
- Xi Story: Agricultural Science, Technology Carry the Weight of Food Security