According to Thirdfort, a risk management platform, landlords are amongst the groups most vulnerable to fraud. Thirdfort has identified eight types of properties that are at higher risk of property fraud, and two of them are owned by landlords.
The first type of property that is more susceptible to fraud is that owned by absentee landlords. According to Thirdfort, “Absent landlords make it easier for fraudsters to obtain the post and impersonate the landlords without their knowledge.” The second type of property that is more vulnerable to fraud is rented property in general. “A tenant may be able to impersonate the owner. They have access to the property and can obtain identification at the address.”
Thirdfort has also identified six other types of properties at higher risk of property fraud, including those with long-established owners with “easy to obtain” identification; mortgage-free properties with fewer ownership criteria to fulfil than those with outstanding mortgages; those homes with no registered title; properties owned by individuals staying long-term in care homes and hospitals; those properties with deceased owners; and those properties that are on the market when fraudsters can pose as potential buyers to collect information.
Thirdfort has warned that property fraud and the use of fake ID documents are increasing. Criminals use a variety of methods to engage in fraud, including obtaining fake IDs and falsifying documents so that their name matches a property owner’s name, and illegally obtaining genuine documents to open a bank account.
Thirdfort’s Harriet Holmes said, “Property firms such as conveyancers and estate agents often rely on their staff to manually verify identity documents to complete Know Your Client and Anti-Money Laundering checks, increasing the risk of human error that they may unknowingly enable fraud and money laundering.”
Holmes suggests that property firms should update staff training on identifying fraud risks and become familiar with government guidance on examining ID documents. She also recommends the use of modern digital verification tools to reduce the burden on staff when checking and verifying ID documents.