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You are reading: The Essential Buyer’s Guide for Fraud Detection

April 16, 2024

The Essential Buyer’s Guide for Fraud Detection

Daniel Berlind
CEO

Fraud is an ever-evolving problem in the multifamily industry. Gone are the days when you could easily tell which documents were phony and legitimate via a manual review. Now, detecting document fraud requires advanced technologies to combat the increasingly sophisticated techniques fraudsters use.

But with new fraud detection companies popping up more frequently, how will you know which is the best for your business? This buyer’s guide will give you an overview of the key considerations when selecting a fraud detection solution for your organization. Don’t forget to use our buyer’s guide checklist to help you evaluate your options during this process.

Let’s dive in!

What kind of fraud detection do they provide?

Not all fraud detection technologies are created equal. It’s important to understand how their technology works and how effectively it stops fraud.

Does it only use Optical Character Recognition (OCR)? Unfortunately, this method isn’t comprehensive and can’t accurately detect a significant amount of fraud. By simply using a web browser, an applicant can HTML edit what their bank account amount displays. They can take a screenshot of that or print it to a PDF and successfully create a pixel-perfect, undetectable copy that’s impossible for OCR to detect.

Does it utilize advanced artificial intelligence to detect document manipulations? This is a foolproof way to detect document fraud, as the technology can analyze and detect any alterations made to a document, no matter how small or subtle.

Knowing the breadth and depth of their technology is one of the best ways to tell how advanced a fraud detection company is.

How many years have they been in business?

Fraud detection is a relatively new technology that has been rapidly evolving in recent years. Despite its novelty, knowing when the company was founded and the age of its algorithms can significantly influence your level of trust in the system and its capabilities.

How many documents have they analyzed?

The volume of documents analyzed heavily influences the effectiveness of a fraud detection algorithm. A company that has reviewed over 5 million documents will have a better-trained algorithm than one that has examined only 50,000. The reason is simple – the algorithm has been exposed to a larger dataset, enabling it to derive more insights and make more precise judgments.

What is their average turnaround time for document review?

How long will it take to receive a judgment on an applicant’s document? Quick review processes are more efficient for both the leasing team and the applicant.

How do they protect their data?

Choosing a company that takes data protection seriously is of the utmost importance. Fraud detection companies handle large amounts of data in the form of personal and financial information from applicants. This data must be kept secure and protected from any potential breaches or hacks.

One aspect you need to consider is whether or not they are SOC 2 compliant. Being SOC 2-certified confirms that the company adheres to stringent data security, availability, processing integrity, confidentiality, and privacy criteria. This certification is a must for any fraud detection company, as it ensures the safety and privacy of their client’s information.

Do they publish their accuracy rate?

What good is a fraud detection platform if it’s not giving accurate results? An accuracy rate tells you how often the algorithm is correct in detecting fraud. Look for a company that is transparent about their accuracy rate and can tell you how they calculate it. This shows they stand behind their product and are confident in its capabilities.

Do they integrate with property management systems?

If you’re considering adding another software to your toolkit, ensuring seamless integration with your current platform is key. Some may offer embedded solutions, while others may only sell as a stand-alone product.

Inquire about specialized integrations with property management software, like Yardi or Appfolio. Alternatively, check if they offer a universal API integration that can streamline processes across various systems.

What types of documents do they accept?

It’s important to know what types of documents a company accepts. Is it just bank statements and pay stubs? Or do they also accept tax returns, W-2s, and other important documents? Knowing this information can help determine if their service meets your needs. Companies that don’t accept a variety of documents may be too limited for applicants and for your property needs.

Do they have other features?

When considering a fraud detection platform, be sure to inquire about extra features. Some companies may include ID verification, income verification, and employment database checks, providing users with an all-in-one solution. If you choose a platform that only offers document fraud detection, you may want to seek those additional services elsewhere.

Do they have a customer support team?

A reliable customer support team is crucial when implementing and using a new technology. While this may seem like a no-brainer, you’d be surprised at how many companies don’t have a support team or have very limited hours. Be sure to ask what their support looks like and how quickly they respond to inquiries.

How easy is the onboarding process?

Once you decide on a platform that suits your needs, the onboarding process begins. You’ll want to ensure this process is as smooth and stress-free as possible. Look for platforms that offer step-by-step guides, video tutorials, or even one-on-one training sessions to help you get started. This will save your team valuable time and frustration in the long run.

Do they provide statistics on fraud?

A truly impressive company will provide you with fraud statistics on a quarterly or annual basis. This can include stats like the average fraud rate, the number of fraudulent applications uncovered, and what time of the year experiences the most fraud. Providing these statistics shows that they are actively monitoring and addressing fraud and related trends, which is a sign of a reputable, knowledgeable company.

Do they research trending fraud tactics?

Fraud trends and tactics are always changing, thanks to rapidly evolving technology. It’s critical that the fraud detection provider you choose stay updated on these trends and tactics in order to improve their technology and keep your properties safe. Ask them how often they research and analyze current fraud trends and how they use that information to enhance their fraud detection technology.

So, why Snappt?

You may have figured this out by now – Snappt is the industry leader in fraud detection. Our advanced technology utilizes AI and machine learning to detect fraudulent documents with an impressive 99.8% accuracy rate. We’ve analyzed over 6 million documents since our inception in 2019 and continue to stay ahead of fraudsters by consistently updating our fraud detection algorithms. Our SOC 2 certification ensures that we take data security seriously and are committed to maintaining the highest standards in protecting our clients ‘information.

But it’s not just about technology – Snappt also has a Fraud Forensics team of experts who constantly stay updated on the latest fraud tactics and work to improve our detection methods. Our customer support team is dedicated to providing an easy onboarding experience and is available for ongoing assistance.

Don’t put your business at risk by selecting a subpar fraud detection service. Choose Snappt and go with the industry leader.