It is common to have your name, number, and company details out in the open market when you are a real estate agent. However, publicized details make you prone to identity theft fraud. A man caused a $70 million loss and has recently been subjected to 12 years in prison because of real estate identity fraud. Identity thefts can be minimized through online identity verification methods.
What is identity theft?
Identity theft is a type of fraud in which an individual steals a person’s identity details with the intention of obtaining financial benefits. Unfortunately, without the use of ID verification online this can result in a stolen bank account and credit card details which can be worrisome for businesses as real estate agents. These not only incur financial losses but also create reputational damages.
Types Of Identity Theft Frauds In Real Estate
Fake Deposit Fraud
Scammers pretend to be real estate agents and use clever tactics to make the buyer bulk transfer cash via direct transfer. They become successful in doing so by tracking down what the seller is selling and then hacking the emails or by tracking the business. Then these hackers send emails to the buyer asking to send the money in return for booking the property. The emails are sent to many buyers and once the scammers are paid, they disappear into thin air. Now your business has a bad reputation and unhappy and financially lost clients. But these can be prevented through identity verification prior to transferring money.
Fake property listings
Scammers may post your name and photograph on different platforms to attract potential buyers especially targeting investors. There are many people who are interested in buying a property even without having a look at it because of your reputation. But all these can be jeopardized because of these illegal fake listings of properties that might not even be on sale. Name and photographs should be verified by verifying ID online.
LLC identity theft
LLC identity theft is a type of fraud in which criminals steal the real estates’ business identities and establish a line of credit with banks or take control over the company’s property. With these details, criminals are able to purchase multiple products or electronics that can be sold again in return for cash.
How To Protect Your Business From Identity Theft?
Set up a clear payment process
Most of the time deposit frauds take place because clients are unaware of how deposits should be made. You must be clear enough with your clients about how deposits are made within your company’s policy.
Keeping in mind the following points you can create a policy to keep identity thefts out of your sacred business.
- A policy to never send emails to clients requesting payments. This will ensure you and your clients do not lose any transactions.
- Policy to provide the client with a hardcopy of the wire instructions
- Listing the banks’ cheques as an authoritative mode of payment
Incorporating online identity verification
Online identity verification is performed through the use of artificial intelligence that authorizes businesses to verify their clients. These verifications are performed through documents and facial recognition technology. ID check online monitors know your business transactions and ensure you know your customer compliance. It also reduces potential identity theft frauds.
Online ID verification
ID verification is the process of validating a user and their ID documents. Such as national ID cards, passports, or driving licenses. Other verification proofs include utility bills or tax returns to verify the address of the buyer or the seller. These ensure that little to no identity thefts when onboarding clients for a real estate business.
Enhanced security
Security software tools ensure no malicious or spam emails reach the buyers and sellers. Additionally, get secure email gateways that filter out malicious emails from the inbox. Ensure that your clients use this technology too and that they are fully aware of these types of scams.
When the email addresses of the real estate businesses have been compromised, sending out phishing emails. It can become difficult to reach the users’ inbox and remove the threat. Therefore incorporation of post-delivery protection should be incorporated.
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Conclusion
Real estate businesses are prone to many frauds and scams such as money laundering and identity thefts. But, when online identity verification methods have used these threats, can be minimized at a large scale.
