London estate and lettings agent Benham and Reeves has uncovered a growing wave of fraudulent activity targeting landlords in the capital. With forged IDs, doctored documents, and undeclared financial issues becoming increasingly common, the firm reports that fraudsters are finding new ways to exploit the city’s high-demand rental market. This alarming trend is prompting calls for greater scrutiny and human involvement in tenant screening processes to protect landlords from significant financial losses.

Rise in fraudulent tenant applications
In London’s fast-paced rental market, properties can be let within days, making it difficult for landlords and agents to spot rogue tenants in time. Benham and Reeves revealed that they encounter fraudulent applications on a monthly basis, often involving forged documents and undisclosed financial liabilities. Last month alone, the firm identified eight forged passports or IDs, 40 altered bank statements and utility bills, 50 fake employment references, and 30 undeclared County Court Judgements (CCJs) or Individual Voluntary Arrangements (IVAs).

Director of Benham and Reeves, Marc von Grundherr, highlighted the severity of the issue: “The lettings market has become a key target for fraudsters due to the illicit profits they can generate quickly and over a short period of time, particularly in London where demand is high and rental values are at their highest.”

The importance of human oversight
While digital tools and artificial intelligence have become essential in helping agents manage large volumes of applications, Benham and Reeves emphasised that technology alone is not enough to detect increasingly sophisticated fraud attempts. Fraudsters have adapted to these automated systems, finding creative ways to alter documents and trick digital screening methods.

Von Grundherr stressed that a manual review of applications is critical in catching fraudsters: “Landlords must be on guard, but it’s down to letting agents to provide that vital line of defence which simply can’t be upheld through technology alone. For us, this means strict digital ID verification, manual checks of all documentation, rigorous checks of employment references, and even an online search of the applicant, including a review of their social media profiles.”

Real-world examples of tenant fraud prevention
Benham and Reeves shared several examples of how their thorough screening process helped prevent substantial financial losses for landlords:

• High-net-worth fraud: A supposed art dealer, with an undisclosed CCJ of £12,151, provided fake bank statements and was found to be in arrears at a previous tenancy while claiming Universal Credit.
• Organised crime network: Multiple tenant applications displayed suspicious similarities, leading to police involvement when it was discovered that all the references provided were fraudulent.
• Cloned company scam: Several applicants claimed to work for a fake media company, using forged payslips and altered bank statements. These connections were uncovered, stopping a large-scale fraud attempt.
• Fraudulent barrister: An applicant claiming to be a barrister submitted altered bank statements and provided false landlord references to hide arrears at their current tenancy. This case underscores the need for deep background checks, regardless of the tenant’s professional status.

A call for higher standards in tenant screening
With fraudsters becoming more sophisticated, Benham and Reeves are urging letting agents to adopt more stringent screening processes to protect landlords. “Unfortunately, every agent does things differently, and some don’t do an adequate job,” said von Grundherr. “Landlords need to ensure their agent is going the extra mile.”

By combining digital tools with manual checks, including verifying references, cross-referencing bank statements, and running open-source background checks, letting agents can reduce the risk of fraud. Von Grundherr concluded, “Whilst it’s inevitable that some crooks will slip through the net, this threat can be drastically reduced by taking a proactive approach to tenant verification and not relying on technology alone.”