Innovative Solutions Against Tenancy Identity Fraud – The Harvey W. James Story
Introduction
In today’s lettings industry, identity fraud remains a persistent challenge—one that affects not only tenants and landlords but also the agencies that work tirelessly to protect them. At Harvey W. James, a boutique agency specialising in luxury new-build properties in Central London, we have faced our share of fraudulent applications. Despite relying on trusted third-party referencing systems, sophisticated UK fraudsters have managed to slip through our defences. Recognising that even the best external technologies can be circumvented, we took a stand. This article tells the full, detailed story of our battle against tenancy identity fraud: the real-world scenarios we encountered, the lengths we went to uncover the truth, and the ingenious measures we developed to safeguard our community.
1. The Fraud Landscape: How It Happened
Identity theft in the rental sector is alarmingly common, and our experience reflects a broader issue within the industry. Fraudsters, drawn by our reputation for quality and luxury, have repeatedly found ways to bypass external checks—even those provided by sophisticated referencing agencies like Goodlord.
The Scenario in Detail
At Harvey W. James, we provide not just housing but an experience. Our properties are meticulously designed and staged as show homes, complete with designer furniture and soft furnishings. Quality attracts quality—and, unfortunately, also fraudsters. Here’s how their scheme typically unfolds:
Initial Contact and Viewing: Fraudsters phone in and arrange viewings of our luxury properties. They attend the viewing with their partners and present themselves as genuine, well-heeled applicants. The viewing is conducted with the same care and professionalism we extend to all prospective tenants.
The Application Process: Despite attending as a couple, the application is always submitted as a single applicant. This streamlined approach speeds up the process and avoids additional joint verification measures. A one-week holding deposit is taken, and the referencing process begins immediately.
External Referencing with Goodlord: We rely on Goodlord’s referencing service, which is reputed for its best-in-class technology. Their process includes:
- Credit checks
- Instant identity document authentication
- Collection of Right to Rent documentation
- Income verification through Open Banking, HMRC data, and payroll providers
- Payroll integration via Konfir for secure financial referencing
Despite these robust measures, fraudsters have found a way to manipulate the system. They alter the passport photograph to match the person we met at the viewing—even though the actual passport belongs to someone else. Every detail on the application, from credit history to employment records, is meticulously adjusted so that the identity checks pass without raising any alarms.
The Aftermath and Investigative Visits: Once approved, the fraudster promptly pays the first month’s rent (and even the second) only to vanish by the third month. Alarm bells started ringing when property visits revealed that the supposed tenant wasn’t living at the address. Determined to understand what was happening, we embarked on an investigative journey that would change everything.
2. The Investigative Journey: Knocking on Doors to Uncover the Truth
Realising that conventional methods were failing, we decided to take matters into our own hands. We meticulously reviewed each fraudulent application and identified patterns suggesting that the real applicant might still be at the registered address. To test our theory, we set out on an investigative mission.
The Commitment to Discover the Truth: We drove for four hours to personally visit the home addresses listed on several suspicious applications. This commitment to uncovering the truth was born out of sheer necessity. We believed that if we could confirm whether the genuine applicant was residing at the address, we could expose the fraud.
The Shocking Discovery: Knocking on the door, we were shocked to find that in many cases the real occupants were indeed still living at the property—unaware that their identity had been stolen and misused by a fraudster. This eye-opening experience confirmed our suspicions and underscored the critical gap in our existing verification process.
The Realisation: Had we not taken the time to drive up to six hours on certain occasions to verify these applications, we would never have uncovered the true extent of the fraud. This hands-on investigative approach was the catalyst for our breakthrough and led us to develop a more efficient solution.
3. The Turning Point: Developing Direct Mail Verification
The investigative journey made it clear that while personally verifying every application was effective, it was impractical for everyday operations. This realisation led us to devise an innovative, scalable solution—Direct Mail Verification.
Developing a Proactive Solution: Direct Mail Verification
The Concept: Instead of driving hours to knock on every door, we introduced a simple yet powerful method. For every UK applicant, we send a verification letter to their registered home address. This letter contains a unique verification code and clear instructions for the next step.
How It Works: Applicants are required to either:
- Send us a clear photograph of the letter with the verification code visible, or
- Email the verification code along with their full name and address.
Immediate Impact: This measure has been a game-changer. Once fraudsters realised that a physical letter was being sent to the registered address, they either vanished or the actual identity owners contacted us immediately. Our earlier investigative visits confirmed that when the mail verification was completed, the real applicant was in residence, and any fraudulent application was exposed without the need for further travel.
Ease of Adoption: Unlike complex technological solutions, Direct Mail Verification is straightforward and highly effective. It leverages a simple, reliable method that every letting agent can adopt without significant cost or disruption.
4. The Results: A Proven Strategy Against Fraud
Since implementing our Direct Mail Verification process, we have successfully intercepted numerous fraudulent applications before they could progress into tenancy agreements.
Success Stories
Preventing Costly Legal Battles: Cases that would have previously led to expensive insurance claims or drawn-out eviction processes are now halted at the application stage, protecting both our clients and our reputation.Industry Recognition: Our innovative approach has garnered attention from regulatory bodies and industry peers alike. We have been invited to share our process in industry press releases, setting a new benchmark for other agents and referencing agencies.
5. A Call to Action for the Industry
Our experience underscores an urgent need for the lettings industry to adopt proactive measures against tenancy fraud.
For Fellow Letting Agents
We encourage other agencies to review their current systems. Integrating straightforward, internally developed safeguards like Direct Mail Verification can help adapt to new fraud techniques and protect your portfolio from similar threats. Our investigative journey taught us that a hands-on approach—although impractical on a large scale—can reveal crucial insights. Adopting a scalable version of that approach is indispensable.
For Referencing Agencies and Rent Guarantee Providers
Even the best external systems can benefit from an added layer of verification. By adopting Direct Mail Verification and sharing insights, we can all contribute to a safer, more secure rental market in the UK.
Need Support or a Copy of Our Sample Letter?
If you would like a copy of our sample verification letter or require any support in implementing this process, please do not hesitate to contact Harvey Juttla at harvey@harveywjames.com. I would be more than happy to provide assistance or have a conversation to help you safeguard your business.
Conclusion
At Harvey W. James, our mission extends beyond providing excellent property services; it’s about safeguarding the industry against fraud and ensuring that every tenancy is secure. Our boutique agency—passionate about luxury living and uncompromising quality—has taken on fraudsters head-on and is prevailing. With our pioneering Direct Mail Verification system and a commitment to thorough investigative follow-up, we have transformed challenges into industry-leading solutions. Our story is not just about fighting fraud—it’s about inspiring change. We hope that by sharing our experiences and methods, we can ignite a collective effort to raise the bar in fraud prevention, ultimately benefiting landlords, tenants, and agents alike.
