Avoiding Fraud with the Next Generation of Identity Verification

The show of hands divided a room of about 100 at the Texas Apartment Association 2019 Education Conference. Panelists and attorney Jerry Carlton didn’t seem surprised that a majority of the group of apartment managers and operators indicated they had been victim to some sort of fraud. One attendee shared that her property discovered a wave of new applicants that had falsified employment information to qualify for leases. The scammers were paying a locator service to get fake IDs and one successfully rented an apartment. Some who attempt to lease apartments under false pretenses are novices, while others have sophisticated schemes. Even when an applicant appears to be questionable, the decisions aren’t easy. Panelist Stacie C. Parrish, who is Regional Director at Advenir Living, described how one of her property managers had an applicant produced a blatantly false ID when applying. The manager wasn’t sure if she should allow the tour. “I told her to show the apartment and that we would address it when it came time to sign a lease,” Parrish said. Fortunately, the prospect didn’t apply. But identity thieves continue to put multifamily properties at risk by falsifying applications through fake IDs, stolen social security numbers and even synthetic IDs created from multiple identities. “Identity thieves are looking for an opening, just a spot to get in,” said Carlton, an attorney for Jerry L. Carlton, Glast, Phillips & Murray, PC. “Once they get in, it’s misery for you because you’ll give away a lot of rent.” The session addressed how unqualified and dangerous people scam their way into apartments. Parrish, RealPage Vice President Ian McIntosh and Pinnacle Regional Vice President Michele Butler offered experiences and best practices in dealing with one of the apartment industry’s ongoing risks. The key message was to be prepared to fight back. Incorporating tools to defend against...