Landlords at risk from identity fraud
Friday, 02 Jun 2006 09:21
Landlords are urged to redirect mail to avoid identity fraud risk
Landlords are being warned that they are at risk from identity theft if they fail to carry out comprehensive checks on their tenants.
Data released today shows that landlords are among the groups most at risk from people stealing their identity to apply for credit cards and loans, or to gain access to their bank accounts.
Landlords account for half of identity fraud victims who knew the person that used their identity.
They are also at risk when renting out properties they have previously lived in. More than four in ten cases of identity fraud are previous address fraud, where the tenant fraudulently uses the personal details of the previous resident.
The data from CreditExpert.co.uk shows that tenants have used their landlord's name and the property's address to apply for credit cards, loans or even just mail-order goods.
In other cases, tenants have intercepted mail addressed to their landlord and used their details to apply for credit, running up thousands of pounds in the landlord's name and seriously affecting their future borrowing power.
"Purchasing a buy-to-let property is an increasingly popular investment. When considering this type of investment, people should be wary of the possibility of dishonest tenants taking advantage of your good credit score and credit report to incur debts in your name," said CreditExpert.co.uk managing director Jim Hodgkins.
But it is not just landlords who are at risk. People who change address frequently are at risk from fraudsters, particularly, as one in four people do, if they forget to re-direct their post when moving home.
Those who share mail-boxes should also take steps to protect themselves, as mail can easily be intercepted by fraudsters.
Tips for avoiding identity fraud
Buy-to-let landlords should take the following steps to avoid identity fraud:
Ensure your post is not delivered to your rental property, even if you do not think you have given the address to anyone. Contact the Post Office to redirect your post, something that is even more important if you have previously lived in the property.
Carry out comprehensive checks on prospective tenants before signing a contract with them. Ensure you have references from their previous landlords, and use services such as: www.tenantverifier.com
Register with the Mailing Preference Service to have your name taken off most direct mailing lists in the UK for the rental property. This means mail shots from credit card and other financial companies will not be sent to this address.
For shared properties fit secure individual mail-boxes to provide your tenants with piece of mind.
Monitor your credit report to see if anyone has fraudulently applied for credit in your name.
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