Real estate sector fights fraud, minimizes risk with digital identity verification

Identity fraud has been increasing within the real estate sector, allowing identity verification firms to expand their reach inside the business.

U.S. company Clear, best known for helping passengers skip lines at airports, is joining a fraud prevention alliance bringing together identity, fraud prevention, and real estate expertise to promote the adoption of digital ID products in real estate. The alliance includes real estate technology platform 100 and leaders from the National Multifamily Housing Council (NMHC).

The alliance argues that identity solutions are necessary to prevent rampant identity fraud in the real estate business.

According to NMHC’s 2024 data, over 70 percent of apartment owners, developers and managers reported identity theft, fraudulent ID documents or use of another individual’s personal information. The industry group wants to solve this by introducing biometric authentication for every individual entering a property, including guests, service providers, prospects and vendors.

The effort includes launching a new product called Verified by 100 which helps integrate Clear’s Verified identity platform into property management systems.

“For too long, multifamily has relied on outdated systems – or worse, gut instinct – to decide who gets on-site,” says Caren Maio, CEO  and co-founder of 100. “Verified is more than a security upgrade – it’s the next step in our fraud prevention platform and the foundation of the alliance’s mission to put identity at the center of community safety.”

Clear already offers services to apartment membership platform Landing and has partnered with the U.S. largest managed security provider for commercial real estate Kastle Systems.

Forewarn lands deal with New Jersey realtors

Identity verification and risk assessment company Forewarn will allow real estate agents in New Jersey to verify the identity of their clients and search their criminal histories.

Thanks to a deal with the Mid-Jersey Association of Realtors (MJAR), Forewarn’s online platform and mobile app will be available to more than 6,800 real estate agents, allowing them to prepare for showings to clients and identify red flags by checking their phone numbers.

“The nature of real estate means agents are often engaging with unfamiliar individuals in unpredictable settings,” says Nicole Banbor, MJAR’s CEO. “By offering Forewarn, we’re giving our members a powerful tool to help verify prospects and minimize the risk of fraud or harm.”

Forewarn’s product has been finding its way into other realtor organizations across the U.S. The Florida-headquartered company is a division of the Nasdaq-listed data and analytics company Red Violet, specializing in identity intelligence.

Identity fraud surges in the UK

The U.S. real estate sector is not the only one looking towards integrating more identity verification products due to rising fraud.

According to a survey conducted by UK identity verification firm Credas, 70 percent of British real estate professionals have witnessed a hike in identity fraud. Over half of the 250 survey takers shared that they had encountered fake identification documents. Despite this, only 14 percent say that they regularly report such cases to the authorities.

The study also shows that the sector is responding by adopting more sophisticated tools: 65 percent of fraud cases are being detected using digital or automated methods, industry media outlet Security Brief reports.

“Digital ID verification is proving to be one of the most effective tools in detecting and preventing fraud, while also improving the experience for legitimate customers,” says Credas CEO Tim Barnett.

Credas was recently chosen as an onboarding partner for British conveyancing company Muve. The company services more than half of the residential property transactions in the UK, completing 35,000 compliance checks daily.

Article Topics

100  |  CLEAR  |  Credas  |  digital identity  |  fraud prevention  |  identity verification  |  real estate  |  secure transactions  |  synthetic identity fraud