News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the July / August 2005 issue RPI news archive

Checks did not spot fake identity - July / August 2005

THE LETTING AGENT caught up in the case of a tenant who stole her landlord’s identity says he took every possible precaution, including taking out reference checks using a reputable checking agency.

Jonathan Harari, director of Rooftops, which was established in 1991 and is a member of the Association of Residential Letting Agents, said the checks had shown nothing amiss.

"When a tenant presents with a driving licence and a passport number and the checks confirm this person’s identity, even though false, what else can we do? After all, we are not allowed to take fingerprints.

"We are constantly arguing with the way that these credit agencies carry out their checks on the strength of a phone call."

The tenant had originally presented to Rooftops in Hale, Greater Manchester, claiming to be Jane Wright, although her real name was Angela Hargreaves. When the tenancy check came back, the firm handed over the keys. She paid the £1,600 deposit and kept up the rent. As the tenancy proceeded, there was no problem until police informed Rooftops that the woman had been caught shoplifting.

It then emerged that Hargreaves had taken the identity of the landlord, Catherine Litherland, who was abroad and had left her birth and wedding certificates in the property.

Hargreaves had been trying to sell the property. Harari said: "Apparently, she approached a couple of estate agents and they too had been duped." The sale of the property, which was worth £560,000 although Hargreaves knocked £130,000 off its value, was stopped once the police started to investigate.

Hargreaves also stole antique furniture worth £14,200 from the house, which she sold for £1,250. Although some of these items have been recovered, they have not been returned to the landlord because she was paid £10,000 compensation through Rooftops’ insurance.

Harari added that he could not understand why the furniture issue could not be sorted out. "It’s all beyond me," he said. In court, Hargreaves admitted theft and deception charges and was given 200 hours community service, after claiming that she had been asked by a man to help him look after and sell the house.

The sentence has been widely attacked as inadequate.

Rooftops still does tenants’ reference checking but now also requires landlords to be checked: "Not that that would have been any help in this case," said Harari.

Malcolm Harrison, spokesman for the Association of Residential Letting Agents, said: "This is an appalling situation for any agency to find themselves in and highlights the need for further investigation into how identity theft can be prevented.

"Unfortunately, I do not think you can legislate against a thoroughly determined crook."

The landlord has now sold the property, rather than wanting to risk letting it out again.

AVOIDING THE FALSE ID TENANT

Identity theft is one of the fastest growing crimes in this country, thought to defraud businesses of £50 million a year. It may also be tied in with money laundering.

1. Always check out any prospective tenant. This should mean a minimum of three references - a personal one, bank one or credit rating, and employer’s (or, if a student, college or school) reference. If a tenant has rented before, also get a reference from the previous landlord.

2. You or your agent must meet the tenant. Ask to see a passport or driving licence. Check the photo against the person’s appearance.

3. Some letting agents don’t bother with referencing and others only do the most simple credit checks. Ask what their procedures are. They should be in line with (1) above.

4. Never leave personal papers in the property.

5. Any post, including bills, addressed to you or to previous tenants should be re-routed by the Post Office.

6. If you use an agent, expect to be asked to produce evidence of your own identity. Residential estate agents have a legal duty to "know their client" under anti-money laundering legislation, and letting agents have a duty under antiterrorism laws. If an agent doesn’t check you out, how can you be sure they will check out your tenant?

7. Never answer emails that you are not expecting or open attachments that you weren’t expecting. Never supply bank information in an email or over the phone.

8. A prospective tenant should match your property. Why would a single person want a family house?

9. If you operate as a company, check your details at Companies House. Fraudsters can change the registered address and directors by submitting false paperwork.

10. File your documents online and sign-up for ‘PROOF’ at Companies House. PROOF is a free, password protected, online system for companies to alter their details on the register. Further information on this more secure system is available at www.companieshouse.gov.uk

11. Sign-up to an ‘alert’ system to monitor your company’s and key customers’ details. Experian’s Company Monitoring service will automatically alert you if any changes, additions or amendments are made to company documentation filed at Companies House, including a false change in your company’s address or the addition of ‘new’ fraudulent directors.

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