Identity Verification Takes Center Stage as Multifamily Fraud Shoots Up 60%

In multifamily, virtual applications rocketed up in the “contactless” environment of the Covid crisis. With this came an increase in fraud. The situation has been exacerbated by eviction bans. Once a fraudster is ensconced in an apartment but failing to pay, getting them out can cost between $5,000 and $15,000 on average in legal fees, turn costs, vandalism and other expensive line items. And deception isn’t limited to move-in. It can take place as early in the renter life cycle as the initial property tour, and after move-in when it’s time to make payments. The good news is that enhanced identity verification software is addressing these fraud touch points, and saving properties lots of money. All without causing them to turn away good renters through being overzealous. An online invitation to fraud The FTC reports that fraud in multifamily is up 60% year-over-year. This striking trend has property managers scrambling to find solutions for both their online and in-office interactions. “There are ID verification solutions out there that are still mostly plastic-based,” says Michael Mauseth, SVP of Screening at RealPage. “You present a driver’s license or passport, which might be fake or belong to someone else, they scan it and you’re good to go. This just doesn’t cut it anymore.” He emphasizes that RealPage’s solution, called RealPage IDV, goes far beyond the plastic. “There are many ways to verify someone is whom they say they are, including commercial and public data, government-issued IDs and mobile devices,” Mauseth explains. “The hard part is building a system that knows how to access and reconcile these things. Ours matches up the information prospects provide about themselves to what’s out there, and pinpoints any areas of doubt for deeper inquiry. It’s very smart, and very accurate.” Mauseth is particularly enthusiastic about how much of the id...