Kyle Nelson
Vice President of Corporate StrategyIn this article
The advent of artificial intelligence has had a profound impact on the multifamily industry. From improved tenant screening to document fraud detection, AI enables property managers to excel in their roles and effectively protect their properties.
But as with all things, there is a downside to these technologies. Recently, scammers have discovered how to create AI-generated IDs, making it increasingly difficult for leasing teams that rely on older techniques or technologies to distinguish between real and fake IDs. This new source of fraud poses a potential threat to the security and financial stability of multifamily properties.
Identity fraud has skyrocketed since the pandemic, with a total of 1.036 million reports of ID theft reported in 2023 (compared to 650,000 in 2019). Over 55% of US-based businesses reported receiving fake documents or IDs in 2023 (AuthenticID State of Fraud Report); AI-generated IDs are likely to increase these numbers in the future. Scammers can now create convincing and nearly undetectable fake IDs using easy-to-use machine-learning algorithms. These IDs present a significant problem for property managers who rely on traditional methods of ID verification (also known as identity proofing), such as manually checking the physical ID or using online databases.
So, how do these technologies work, and what can be done about them? In this article, we’ll review how AI-generated IDs are created and how Snappt can help property managers protect their properties from identity fraud.
How Does It Work?
AI-generated IDs made headlines last month thanks to an underground website called OnlyFake. They claim to be using “neural networks” – a segment of machine learning technology that plays a role in deep learning algorithms – to create fake IDs for just $15.
Fraudulent IDs like these are created using AI algorithms that can generate a realistic-looking ID in a matter of minutes. They use stolen personal information, such as Social Security numbers, photos, and driver’s license numbers, to create these IDs, making it appear as though they belong to a real person.
These deceptive IDs are intricately crafted to replicate authentic human-made IDs, complete with necessary holograms, watermarks, and barcodes. The advancement of AI algorithms makes it increasingly difficult to identify these IDs.
What Are the Consequences?
Property managers won’t know who resides on the property if these AI-generated fake IDs make it through the screening process undetected. This can pose several risks, including illegal activities on the premises, property damage, and a negative community reputation.
Suppose a person isn’t who they claimed to be on their application. In that case, it opens up a whole new set of problems for property managers, as they may be housing individuals with criminal records or outstanding warrants. In some cases, these individuals may even use these properties as a base for conducting illegal activities.
Lastly, if fraudulent activity occurs in a property that was rented out unknowingly based on false identification documents, it can put the owner at risk of legal liability. Property owners must provide safe and secure living environments for their tenants, and failure to properly screen and verify rental applicants can result in lawsuits.
How to Catch Them
Luckily, there is a way to catch these pesky fake IDs before you accept someone’s application. Implementing a robust ID verification solution into your screening process is crucial, as it allows property managers to quickly and accurately verify the authenticity of an applicant’s identification documents.
But wait – not just any ID verification solution will do.
Property managers need a solution that includes a biometric liveness check. This step requires the applicant to take a live photo of themselves and then upload their issued ID, ensuring that the ID matches the photo taken in real-time. This added layer of security can save property managers from costly lawsuits and potential damage to their reputation.
Snappt’s best-in-class ID verification technology uses a biometric liveness check to scan and authenticate government-issued IDs in seconds. It also performs over 30 additional checks, including expiration checks, barcode matching, and scans of both the front and back of the ID to ensure that only verified individuals can rent properties.
Avoid jeopardizing yourself by accepting fake IDs. Safeguard your property with Snappt’s all-in-one fraud detection and ID verification platform, Snappt Pro.
Chat with our sales team to learn about our comprehensive fraud solution