Tenant information, prospective tenant information, reference checks. Landlords and property managers hold a lot of data. Personal data. And as we all know personal data carries a high price tag. According to the UK’s Fraud Prevention Service (CIFAS), identity theft was the most ‘dominant fraud threat’ in the first 3 months of 2015, in fact they identified*:

• The number of recorded victims of identity fraud increased by 31%, from 24,482 to 32,058.
• Credit cards (14,103 confirmed cases - 41% of all identity frauds) and bank accounts (9,349 cases - 27% of all identity frauds) are the identity criminals’ preferred targets.
• Over 80% of all identity fraud in the first quarter was attempted or perpetrated online.
• The average age for both male and female identity fraud victims is 46 years old.
• Those in the 21-30 age range continue to be increasingly targeted - 3,970 people in this age range were targeted by identity criminals (16% of all identity fraud victims): a 26% increase from 2014.
  The problem for landlords is that due to the large volumes of personal information they keep, more and more property managers and landlords are becoming targets of identity theft.

So what can you do?

• Computer protection: Password protect your files and make sure you keep your virus protection and firewall up to date. Also, avoid storing tenants’ personal information on laptops that are frequently used outside the home or office and could be easily stolen. If you need to access this information on the go, consider remote network access that will allow you to get the information you need from a central secure location.
• Releasing information: Personal information should only be released to those specifically authorised by the individual. Never release personal information over the phone, through the post or electronically unless the receiver’s identity has been confirmed as legitimate.
• Proper disposal: Rubbish is a common target of identity thieves. To stop information from being picked out of the rubbish, use a shredder when discarding any paperwork that contains personal information.
• Tenant communications: When communicating with tenants by post or electronically, always try to include as little sensitive information as possible. If it cannot be avoided, always do your best to ensure that it reaches the tenant in a secure fashion. Put outgoing post directly into secure collection boxes, and only use electronic forms of communication if there are security measures in place to prevent public access.
• Employees: It is important to make wise hiring decisions to prevent employee theft or leaks. Only those employees who require it to carry out their daily duties should have access to tenants’ personal information. Employees should not have access to all records, but instead, only to those that apply to their work. If an employee is terminated for any reason, make sure that access to any tenant information is immediately restricted.

If personal information that you are responsible for is obtained and used, you could be liable under the Data Protection Act. Unfortunately, when property managers or landlords are targeted, identity thieves usually take more than just one tenant’s information, which can result in costly fines. To protect your business and your tenants it is important to consider how you record, process and store tenant information and communicate this with your employees to maximise your chance of protection.

*https://www.cifas.org.uk/id_fraud_first_quarter

Source: Zywave: Property Management Risk Insights: Protect Tenant Information from Identity Theft

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