Many people are aware of rental fraud, in terms of scams against the renters. From foreclosure scams to fake listings, to foreign wire transfers, and beyond. However, what most people aren’t as familiar with, is rental fraud committed by renters against property owners. To distinguish between the two types of rental fraud, in property management, the latter is commonly referred to as “renter fraud.”
Renter fraud can be committed in several different ways and affects the multi-family housing industry more than you may realize. In fact, 97% of management companies have experienced rental fraud. The costs of rental fraud can be detrimental for property owners. Let’s take a deeper look at the numbers to see just how prevalent rental fraud is, and what can be done to prevent it.
Rental Fraud by the Numbers
As we mentioned, 97% of management companies have experienced fraud. One of the most common ways that renters commit fraud is by using fake identification. In 2018 alone, 14.4 million people were victims of identity fraud. In 2017, the number of SSN breached was 158 million. Rental fraud committed by using fake identification is extremely prevalent in the United States. There are currently 10,000 active fraud rings operating in the US, and there has been a 19% increase in driver’s licenses issued/forged. Each incident of rental fraud, on average, costs $5,000-$10,000 for property owners. Between legal fees, damages, eviction, and other associated costs, it adds up quickly. These numbers are daunting and show that it’s more important than ever for property management companies to take action in preventing rental fraud.
Reducing Rental Fraud with ID Scanning
While it’s evident that rental fraud is a widespread issue, 95% of property management companies say that they experience difficulties identifying and preventing fraud. Many companies simply ask guests for their ID at the time of an apartment tour, place it in a desk drawer, and take them for the tour, assuming that the ID is real. Not only is this compromising the safety of your employees and residents, but it also could be wasting time and money if the ID turns out to be fake. With CheckpointID’s verification software, you can improve your leasing safety and prevent rental fraud from the start. Within seconds, you can scan government-issued IDs against our proprietary international databases to determine whether the ID passes or fails. In 2019 alone, CheckpointID intercepted more than 11,000 counterfeid IDs. This means more than 82,500,000+ dollars and 5,500+ hours were saved for property management companies across the country. Our easy-to-use, high-tech ID verification system is highly effective in reducing rental fraud and protecting your assets.
Schedule a Demo with CheckpointID
Rental fraud is more prevalent in the United States than ever before, and taking action to reduce it from the start is crucial for property owners. To learn more about how our ID verification system works and the benefits of it, contact us today to schedule a demo! We’ll be glad to answer any questions you may have, and working with you to reduce rental fraud across the multi-family housing industry.