In the current economic climate, characterised by low rental housing availability, high demand, soaring rental prices, and escalating mortgage rates, the risk of fraud and financial crime is a growing concern.
One area that seems to be on the rise is the number of fraudulent documents that are being sent across for tenant referencing purposes. So it's important to verify documents authenticity to avoid potential fraud or misrepresentation. There are no easy solutions but there are some steps you can take to help identify false documents for rental purposes. These are as follows:
1. Conduct KYC checks: Implementation of Know Your Customer (KYC) checks on all applications plays a pivotal role in mitigating identity fraud by verifying the identities of individuals.
In the past, this process typically involved visiting a physical branch and presenting necessary documentation to an agent for verification. However, the landscape has evolved, and customers now seek remote verification methods that offer convenient digital solutions, ensuring faster and more efficient onboarding experiences.
2. Use tech for Right to Rent checks: Go beyond traditional methods and incorporate cutting-edge technology such as biometric screening and facial recognition. These advanced measures provide an additional layer of security, ensuring that the applicant's claimed identity aligns with their physical features.
3. Use an automated fraud screening system: This employs sophisticated algorithms to detect any signs of tampering or forgery in submitted documents. This robust system acts as a safeguard against fraudulent activities by promptly identifying any attempts to alter or fabricate crucial information.
4. Verify income with Open Banking: The quickest and most secure method to verify income is by using Open Banking. By leveraging this technology, you can access real-time financial data directly from the applicant's bank, ensuring accuracy and eliminating the risk of manipulated or fraudulent income claims. This streamlined approach saves time and ensures the reliability of income verification.
5. Manually Review documents: At Canopy, we take the extra step of conducting a meticulous manual review of all income documents. Our experienced team closely examines the submitted documents, cross-references the information provided, and employs their expertise to identify any inconsistencies or irregularities that may have slipped past automated screening.
A good referencing company should have all these bases covered for you. But if not, take a look at what Canopy can provide.