Why Landlords Are Identity Theft Targets: Ways To Protect Yourself From Renters

Recent studies have shown that landlords are one of the highest risk groups for identity theft. Did you know that landlords account for 50% of the identity fraud victims who knew the person that used their identity? 

What is Identify Theft?
Identity theft is the act of impersonating another, by the means of using the person's sensitive information, such as birth date, Social Security number, address, name, and bank account information. The thief obtains the information without the knowledge of the victim to commit fraud or other forms of theft.

Why are landlords more vulnerable to Identity Theft?
Landlords are vulnerable when a perpetrator moves into a rental unit using someone else's identity or when someone actually uses the landlord's identity to commit fraud. As a landlord or property manager, your risk is higher when you rent out properties that you have previously lived in. This is because identity fraud often includes or starts with previous address fraud, where the renter fraudulently uses the personal details of the previous resident by intercepting mail addressed to the victim.

Generally, when an identity thief moves into a rental unit, they will pay the deposit and first month's rent. Over time, the thief will stop payments, delay payments or make partial payments. Identity thieves are aware of eviction procedures and take full advantage of the timeline within the legal process.  Unfortunately, these kinds of criminals know every trick to delaying their eviction and will use every possible sad story to drain the landlord of their resources.

Identity thieves tend to target landlords who do not take due diligence in screening their rental applicants thoroughly, looking for those who are desperate to rent their property or who are trying to save a couple of dollars by not screening.

Landlords can give a strong deterrent to criminals by posting in rental signage or in the rental application that they will screen their applicants to determine that they are who they say they are.

Telling a prospective renter upfront that you will check their background will save you a lot of time and grief simply because an applicant who has something to hide will try to avoid any inquiry into their background.

How Identity Thieves Get Your Information
Identity thieves get information by: 

• stealing records containing personal information while they're on the job 
• bribing an employee who has access to these records
• hacking these records
• conning information out of employees 
• rummaging through your trash, the trash of businesses, or public trash dumps - this is known as "dumpster diving"
• obtaining your credit report by abusing their employer's authorized access to them, or by posing as a landlord, employer, or someone else who may have a legal right to access your report
  [Editor's Note: This is why Landlord2Landlord.com fully credentials our clients before giving them access to credit reports for tenant screening.]
• stealing your credit card or debit card numbers by capturing the information in a data storage device in a practice known as "skimming." They may swipe your card for an actual purchase, or attach the device to an ATM machine where you may enter or swipe your card.
• stealing wallets and purses containing identification and credit and bank cards.
• stealing mail, including bank and credit card statements, new checks, or tax information from unlocked mailboxes
• completing a "change of address form" to divert your mail to another location
• stealing personal information from your home
• scamming information from you by posing as a legitimate business person or government official

How to Protect Yourself
Protecting your personal information is key to minimizing your risk of becoming a victim of identity theft.

• Keep an eye on your purse or wallet, and keep them in a safe place at all times.
• Don't carry your Social Security card.
• Don't share your personal information with random people you don't know. Identity thieves are really good liars, and could pretend to be from banks, Internet service providers, or even government agencies to get you to reveal identifying information.
• Read the statements from your bank and credit accounts and look for unusual charges or suspicious activity. Report any problems to your bank and creditors right away.
• Tear up or shred your charge receipts, checks and bank statements, expired charge cards, and any other documents with personal information before you put them in the trash.

Tips To Follow If You Are Renting Out Property Where You Have Previously Lived

• Make sure that none of your mail goes to your rental properties. A good way to do this is to use the mail forwarding cards from your Post Office on a regular basis.
• If you have lived previously in the address, take extra precaution in submitting mail-forwarding cards to the Post Office.
• Never forget to do a proper and thorough background check on your tenants to see what their criminal and credit history looks like.
• Never share mailboxes.
• Monitor your credit report to see if anyone has fraudulently applied for credit in your name. A good rule of thumb is to review it once a year, as all three bureaus, Experian, Transunion and Equifax will provide a copy of your report to you free of charge once per year. Several good credit report monitoring services are available through the bureaus for a monthly fee.

Case In Point
I know how much of a hassle identity theft can be! A few years ago, an identity thief ran up several thousand dollars on my American Express by lifting my information from a receipt from one of my rental property maintenance bills.  Take as many precautions as you can to prevent it from happening in the first place, because unfortunately this can occur when you least expect it.

Additional Resources
The Federal Trade Commission helps consumers by providing information about identity theft. To file a complaint or to get free information about identity theft issues, visit www.consumer.gov/idtheft or call toll-free 1-877-IDTHEFT (877-438-4338).

Identity Theft Resource Center: The Identity Theft Resource Center is a national nonprofit organization that focuses exclusively on identity theft.

As always, information in this article is not intended to be used, and should not be used, as legal, tax or accounting advice. Investors should seek advice from an independent financial advisor about their specific situation.

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About Landlord2Landlord
Landlord2Landlord (http://www.landlord2landlord.com/) is a residential tenant screening company that partners with property management companies and homeowner associations to help communities reduce neighborhood crime, and to protect homeowners from renters with criminal backgrounds or a history of evictions and poor credit. 

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