London rental market faces surge in fraud

London rental market faces surge in fraud

0:02 AM, 17th September 2024, About An hour ago

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The London rental market has become a hub of fraudulent activity, according to one estate agent.

Benham and Reeves report that many London letting agents face significant challenges with tenant screening.

Last month the estate agent encountered issues such as forged passports, digitally altered documents, and undeclared CCJs.

Landlords must be on guard

The firm warns that while digital and AI tech has come a long way in speeding up data processing, rogue tenants have kept up with the changes.

They believe the key is combining technology with human insight to stay ahead of these tactics.

Director of Benham and Reeves, Marc von Grundherr, said: “The lettings market has become a key target for fraudsters due to the illicit profits they can generate quickly and over a short period of time and nowhere more so than in London, where demand is high and rental values are at their highest.

“Landlords themselves must be on guard but even more so, it’s down to letting agents to provide that vital line of defence which simply can’t be upheld through technology alone.

“The reality is that some agents simply don’t do an adequate job. Unfortunately, every agent does things differently and so landlords really need to be sure their agent is going the extra mile”

Mr Grundherr adds: “For us, that means strict digital ID verification but it also includes a manual check of all documentation, rigorous checks of employment references including domain names, registration details and IP addresses cross-referenced with payslips and bank statements, an online search of the applicant including a review of their social media profiles, open-source tools and search engines, information sharing with the police and more.”

Taking a proactive approach

The firm highlights a case involving a so-called art dealer with a hidden £12,151 CCJ, who provided doctored bank statements and was behind on rent at an undisclosed property while claiming Universal Credit.

Benham and Reeves says that without thorough cross-referencing, this fraudster could have easily gone unnoticed.

Mr Grundherr adds: “Whilst it’s inevitable that some crooks will slip through the net, this threat can be drastically reduced by taking a proactive approach to tenant verification and not leaving it technology alone.”


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