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Landlords warned of tenant identity theft trap
Landlords warned of tenant identity theft trap
Buy-to-let is one of the most popular forms of investment – but it can also be fraught with danger. New research from CreditExpert shows that while being a landlord can be financially rewarding, it also puts your identity at high risk of theft.
CreditExpert's UK Victims of Fraud report reveals that nearly half of all identity theft victims who knew their impostor were landlords. The chances of having your identity stolen are even higher for landlords who previously lived in the property they are renting out. More than four in ten identity frauds involve thieves living in a building and taking the identity of someone who previously lived there. Having completed the theft, they move on.
People who frequently change rented flats are also at a high risk of identity theft – which can lead to false debts of thousands of pounds and take hundreds of hours of work to clear up.
Recorded cases show criminal tenants using their landlord’s name and the rented property’s address to apply for loans, including credit cards and borrowing from banks, and to buy mail order goods in the landlord's name. Intercepting landlords' post has also given crooks enough personal details to open further fraudulent accounts.
The risk of identity theft is high in house conversions or blocks of flats where the residents share a mail box. Again, criminals have stolen their neighbours' identities by using intercepted mail to make credit applications or to access real accounts. By the time the thefts have been discovered, the fraudsters have disappeared.
To get an early warning that someone else is attempting to get credit in your name, it is worth keeping an eye on your credit rating and credit history. There are now some online services which will send you alerts by e-mail or text message if anything significant changes, such as a search by a lender assessing a new application. That helps you to stop identity fraud in its tracks.
If you are a landlord or tenant, you should also consider:
- Using the Royal Mail’s post redirection service when you move home. Even junk mail can help a fraudster to steal your identity. Astonishingly, nearly one in four people forget to redirect their mail when they move.
- Checking that the people you are doing business with are genuine. Landlords may find the checking service at www.tenantverifier.co.uk useful. Tenants should ensure that they obtain references from their previous landlords if they want to be considered for the best properties.
- Registering with the Mailing Preference Service at www.mpsonline.org.uk to have your name taken off most of the direct mail lists used in the UK each time you move. This prevents mail-shots from credit card issuers and other lenders being sent to old addresses.
- Having secure mail boxes fitted for each flat in a shared property. If you are a tenant, ask the landlord or managing agent to fit them.
“Buy-to-let can be a good investment, with property prices continuing to rise in most parts of the country – but it would be naïve to imagine that all tenants are always honest,” says CreditExpert managing director Jim Hodgkins.
“For their own peace of mind and to safeguard their good, honest tenants, landlords should take every opportunity to prevent identity theft. Making sure that post is only received by those to whom it is addressed and signing up to a reliable online credit monitoring service are simple, sensible steps that can stop identity fraudsters before they have the chance to do any damage.”
Further information
Find out more about getting your free credit report online with a 30-day trial membership. You can join www.CreditExpert.co.uk, the online identity protection and credit monitoring service from Experian, the country’s largest reference agency.
You can sign up here for a free 30-day trial that gives you unlimited access to your credit history, allowing you to see at a glance that everything is as it should be. CreditExpert will also send you alerts by e-mail or text message if anything significant changes, such as a search by a lender assessing a new application. That helps you to stop identity fraud in its tracks.
Also: Online credit check
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