Tenant fraud – verification process lags behind scammers using AI
Summary
The article reports rising losses from impersonation scams, with criminals increasingly using sophisticated tactics and AI-enabled methods to bypass verification checks. An AML expert argues that current identity and compliance controls are not keeping pace, creating both financial harm and legal exposure for regulated firms.
Why it matters
Residential property surveyors may encounter fraud risks in client onboarding, identity verification and transaction processes, particularly where they handle funds or rely on third-party checks. The piece highlights the need for stronger verification and ongoing monitoring to reduce exposure to tenancy and rental-related fraud.
Key points
- Average losses to impersonation scams have risen 10% to £3,516.
- Fraudsters are posing as banks, police, HMRC and broadband providers to obtain personal and financial information.
- An AML expert says verification systems are lagging behind modern fraud techniques, including AI-enabled attacks.
- Weak or inconsistent checks can create legal, financial and reputational exposure for regulated firms.
- Robust identity checks and ongoing monitoring are presented as key defences against fraud.
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