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Zelloo   December 2023

How we helped Zelloo Management reduce application fraud to 0.2% 

 

Zelloo Management, an early adopter of Checke, has a portfolio of 2000 single-family homes under management and has seen over 26% of rental application fraud go undetected. 

 

Utilization 

Digital Income Verification

ID Verification

Spending Power

Pre-Approvals

PMS System

AppFolio

Result 1
27%

Increase in

Conversion Rate

Result 2
99.8%

Reduction in

application fraud

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The Problem

Zelloo, a Property Management company, faced escalating fraud rates due to the increasing sophistication of artificial intelligence and the proliferation of CPN (Credit Privacy Number) numbers available on platforms like Facebook Marketplace. These CPN numbers impersonate Social Security Numbers (SSNs) and provide fraudulent credit scores, rental histories, and criminal records.

As a result, Zello experienced many challenges jeopardizing their future renting potential.

  • Fraudulent tenant applications
  • legal expenses
  • Thefts
  • Noise complaints
  • Damage to their online reputation

Solution

To address the rampant fraud, Zelloo integrated the comprehensive fraud prevention package offered by Checke. This solution effectively thwarted fraudulent applicants, preventing them from circumventing the system.

Moreover, Zello benefitted from various other features of the solution, streamlining their rental process and leading to cost and time savings.

  • Instantaneous approvals: instead of waiting for weeks for applicants to submit proof of income, cancellations are significantly reduced.
  • Leasing agents optimized their time by utilizing the spending power function, guiding prospects effectively.
  • Overall, this initiative increased rentals, eliminated fraudulent applications, and drastically reduced cancellations.

Summary

The prevalence of diverse forms of rental fraud is concerning, with 93.3% of respondents reporting instances of fake identity, income fraud, or approval errors. However, only 17% of Property Managers currently have a comprehensive fraud prevention initiative, despite 97% acknowledging the importance of reducing renter fraud.

With Checke, we helped solve these issues and hand with unparalleled transparency about whom they were renting to.

  • Lack of formal metrics for tracking rental fraud and its impact is prevalent
  • 73% detect fraud only after residents move in.
  • This widespread fraud is detrimental, leading to income reduction and increased costs, as 77% of respondents reported.

Addressing rental fraud requires multifaceted verification methods leveraging AI, machine learning, and biometrics. Training employees alone is insufficient, with 43% of respondents indicating that site staff lack financial motivation to prevent fraud. 

  • Common fraudulent actions include
  • Fake or manipulated identities
  • Misrepresentation of income
  • Identity theft.

Property managers must adopt robust fraud prevention measures to safeguard operations and uphold trust within the rental industry. Checke's mission is to build trust and cultivate communities.  

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