Attempted fraud has risen steeply within the letting sector in recent months, according to CIFAS, the fraud prevention database.

Data from the service reveals a 34% increase in identity fraud over the last nine months, with false applications rising 45% during the same period.

Previous research conducted by identity verification provider Credas found that rogue tenants cost £34,797 in lost rent, legal fees and damage to properties.

Tim Barnett, CEO of Credas, commented: “With demand for rental properties soaring there is evidence that potential tenants are massaging their applications to appear more favourable candidates.

“In areas like London, a resulting few months of missed rent is a significant sum to any landlord and can’t be easily recovered. Therefore letting agents need to ensure that tenants are thoroughly vetted.

Barnett also warned that “bad actors” are also posing as property owners and subletting. This, he said, puts the letting agent at huge risk.

“Letting agents have a duty of care to their tenants to ensure the property they are renting belongs to their client,” Barnett added. “There’s also the reputational risk of working with less scrupulous characters. Simple background checks on landlords can confirm they aren’t on any.”

Credas recently launched two products, Vetting and Onboarding Service and Landlord KYC Service, respectively aimed at reducing time spent on dealing with new tenants and preventing fraud efficiently.

Vetting and Onboarding allows an agent to digitally verify a tenant’s identity, gather references, check Right to Rent status, affordability and guarantor status by inputting the tenant’s name and email address or mobile telephone number. Landlord KYC, meanwhile, produces a report that allows agents to ascertain a client’s true identity and instantly check against PEP lists, sanction lists, disqualified directors information and verify that the property being rented is actually owned by the person being vetted.

Both products are white label and can be branded in line with the lettings agent’s own branding.

“We are proud of our new product offering that’s easy to use, client branded and has will cut tenant onboarding down to minutes instead of days,” said Barnett.