As a new landlord - how do I defend against fake identities?

Question

Say a prospective tenant were to come to me with a fake ID, a made up SSN, and plenty of references and proof of income.

When running background checks, what sort of response would come back if the ID or SSN is not valid? Does the system have anyway of knowing? Is it able to differentiate between someone with a made up SSN, and someone with no credit history?

I'm not so much bothered by someone with no credit history, but I want to be able to tell if the individual is using fake information. I've heard a lot of stories where people provide fake info with a fake ID to match and somehow it all goes through. I even remember one story where some undercover police officers used made up info with fake id's and made up SSN's and were able to pass the FBI NICS background check, which to me is bewildering.

Can anyone offer up any advice/experience about this? When running background/credit checks through the systems available to landlords, what red flags should I look for? Can I differentiate between no credit and no criminal background of a real person, and a fake identity? Is the system response different? Or does the system have no way of telling?

Russell Brazil · Answer

I think I would focus on realistic problems instead of ones that will almost never happen. There is always someone who will rent to people with bad credit...there is very little incentive for someone to go through this kind of trouble.

I mean sure it's possible for someone to get hit by lightning 17 times, but I would worry more about getting hit by a car while Im crossing a highway.

Jacob Sampson · Answer

I second Russell Brazil, this is such a low % problem.  Just define your the requirements you are comfortable with; credit score, criminal backgrounds, level of income, length of time at current job, etc. and stick to those.  If they pass they pass.

And to be honest, fake ID doesn't guarantee a bad tenant.  I have rented to several Mexican families and I'm fairly certain they used fake IDs.  All I can say is, "how can I find more?"  They have been by far my favorite tenants.

Chris Mason · Answer

You should not trust the address or employment portion of any credit report.

Probably 15% of the loans I do have "To whom it may concern, 123 Main st - I have no idea why this address is on my credit report, I've never lived here. /s/ date." Mortgage loan applicants have zero incentive to lie to me about where they've lived.

My personal credit report lists me as living in Warsaw, Poland, and my occupation is still listed as USMC. It also says I used to live in North Carolina. I've never been to North Carolina, but I did mail something there once to an old friend.

Jonathan Taylor Smith · Answer

@Russell Brazilsounds like a fake name to me... But I agree with his comments completely! I can't see someone going through all that effort just to rent an apartment, when there are no shortage of rental options available. Plus, if they did, they would have extra incentive to be good tenants, so as not to call attention to themselves, much like suggested by @Jacob Sampson.

Jeff Gates · Answer

New systems that do credit checks require a drivers license image, by smart phone or scanner. In the background they do facial recognition.

Mark Lucido · Answer

So I'm actively going through this as a landlord right now with a new tenant who provided me fake SSN information.  I currently use TenantReports.com to process my background checks for my commercial rentals.  The tenant provided me his information along with the information of his partner whom I never met.  The partner is the primary on the lease since he has the good credit.  Everything went through fine - no red flags until today (18 days later) when the real person called me as she had her credit file flagged for fraud alert.  Fortunately they haven't moved in entirely yet and my lease allows an out if the credit report/background check comes back tainted.  Just need to find a way to break the news to these guys.  Lessons learned:

1.  Always get copies of DL

2.  Meet the person face to face who will be the primary on the lease

3.  You can talk to your background check company and ask if there's a fraud alert on the file

4.  Address information as another post commented should match up to the tenant's story (this tenant had both TX and IL residences - dates should match up too)

Pam Storm · Answer

I've run background companies for years.  Specifically, the ID Validation that is performed in a 'typical background' regarding SSN is:

1.  Has this SSN # been issued?

2.  Was this SSN issued around the Year of Birth of the consumer?

3.  Is this SSN associated with a deceased consumer?

A background report/Consumer Reporting Agency (CRA) cannot verify specifically whether that SSN belongs to that name/individual.  Having said that, if these red flags exist and you read your report and are getting these basic "ID Validation" components, you will know it.

Alex Franks · Answer

Over thinking way to much...

Alex

Jeff B. · Answer

suggest you have issues with your CR and may have been subject to ID theft :sigh:

Jeff Gates · Answer

All I can say is this: (do research on this)

Know your customer (KYC) is the process of a business verifying the identity of its clients. The term is also used to refer to the bank regulation which governs these activities.

As a new landlord - how do I defend against fake identities?

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