The number of fraudulent applications from tenants looking to secure a new rental property rose by 140% last year, revealed the latest data analysis by Goodlord.
According to the research — which compared a sample size of more than 300,000 tenancy applications from 2022 with over 300,000 applications in 2023 — found payslip fraud to be the most common way tenants try to trick referencing systems, where tenants either boost the amount of income they’re receiving or edit its source, such as changing a company name.
Methods used range from rudimentary editing through to the use of sophisticated photoshopping tools.
Payslip fraud accounted for 58% of all fraud cases detected and caught by Goodlord in 2023.
Other forms of fraud picked up over the last year include providing false passport images, doctoring bank statements, offering fake references, and claiming to work for companies that don’t exist.
Nishma Parekh, head of referencing at Goodlord, said: “Fraud can come in many forms; in some instances, tenants who are desperate to secure a property think bumping up their salary will help seal the deal.
“Given the current pressures on the housing market, it’s understandable as to why we’re seeing a rise in this type of fraud — however, this is inadvisable as you could end up on the National Fraud Database, impacting future job prospects and other life events such as securing loans.
“Of course, there is also a much darker side to fraud, such as criminals using false IDs to secure properties, or people who are looking to sign tenancies using forged documents.
“As the tools used to commit fraud grow more sophisticated and personal information is increasingly digitised, it’s vital that landlords and agents can access the cutting-edge technology designed to fight back — ones that can protect them and ensure they can let their properties out in good faith.”
