Snappt Strengthens Fraud Protection With Security Certification And Expansion of Document Types ScannedAugust 23, 2023
Los Angeles, CA — November 29, 2022 – Snappt, the leader in application fraud detection for residential apartment property managers, today announced it has expanded to include fraud detection of investment portfolio statements and bank and debit card statements. Snappt has also successfully completed the SOC 2 certification process, an auditing procedure that ensures that Snappt securely manages applicant data to protect their privacy.
“Snappt is proud to have taken this important step in further developing our fraud detection and cybersecurity capabilities,” says Daniel Berlind, CEO of Snappt. “The SOC 2 certification allows us to confidently secure our clients’ businesses and their data in an era when data breaches and ransomware are more common than ever. The ability to scan investment portfolio statements and bank statements for fraud helps customers expand their ability to detect fraud in the application process.”
After scanning more than 1 million apartment rental application financial documents, Snappt found that one out of every eight had been fraudulently altered. The problem is only getting worse. Before the pandemic, 66% of property managers said they’d been hit by application fraud. After the onset of COVID-19, that number skyrocketed to 85%. Most instances come in the form of altered bank statements, investment portfolio statements, credit reports, personal data, fake pay stubs, and documents that are easily obtained online or via the dark web today, but hard to spot with the naked eye.
The consequences of accepting fake documents are preventable evictions when the applicant stops paying rent. Nationally, the typical eviction costs $7,685. The current 12.5% rate of fraudulent applications submitted to property managers is an avoidable expense of $2.8 million per year for a 3,000-unit portfolio.
“Four of the 10 applications our team receives each month are fraudulent,” said Rachel Palmer, chief administrative officer at American Landmark Apartments. “Most are in the form of altered bank statements and documents easily obtained online. With an average rent of $1,500 a month across the units I manage, that translates into $21 million in revenue that’s at risk every 30 days if I can’t stop those applicants from becoming tenants.
Snappt, a Los Angeles-based real estate technology company, provides a quick and inexpensive data-driven fraud detection service that can accurately spot fraudulent documentation. Snappt is used by 8 of the top 10 property management firms in the U.S. For more information, visit snappt.com