According to research from TransUnion, about 60 percent of property managers have experienced application fraud in the past two years. Nearly 40 percent of these property managers didn’t identify the fraud until after the applicant moved in. Forty-three percent of managers have seen increased evictions due to fraud, and 27 percent have taken on increased bad debt and other financial losses.
Although old-school fraud detection methods may have worked in the past, they are increasingly ineffective against a new generation of fraud. “Those who rely on instinct rather than a formal methodology may put themselves at risk,” said Maitri Johnson, Senior VP of TransUnion’s Tenant and Employment Screening Business. “Not only is that not effective for detecting potential fraud—especially as fraudsters become increasingly sophisticated—it also risks denying housing based on the property manager’s biases.”
Source: Tech is Helping Detect Sophisticated Rental Fraud Schemes – Propmodo
