How to Protect Yourself from Tenant Fraud (Fake IDs, Fake Payslips, Staged References)

Finding the right tenant is critical to a successful buy‑to‑let, yet tenant fraud is becoming a serious problem in the UK. Rent‑tech platform Goodlord analysed 300,000 tenancy applications and found that half of fraudulent applications involved fake or doctored payslips. Landlords also receive fake ID documents, staged references or large upfront payments designed to bypass due diligence. If you rely solely on your gut or on photocopied documents, you risk ending up with non‑paying occupants or even criminal tenants. This guide explains the red flags and verification methods landlords should use to protect their rental income.

Why tenant fraud harms landlords

Fraudulent tenants can cost landlords thousands. They might occupy a property for months without paying rent, sublet it illegally or cause damage. According to Goodlord, fake payslips are the most common tactic; applicants inflate salaries or create entire employment histories to meet affordability criteria. The risk is higher for landlords who accept documents at face value or rush the vetting process. In some cases, fraudsters offer an enticing lump sum in advance to persuade you to skip normal checks. When the money runs out, they stop paying and become difficult to evict. An inaccurate or incomplete screening process also reduces your chance of recovering arrears or using a guarantor if things go wrong. Taking time to verify identity, income and references is therefore essential.

Red flags that suggest fraud

Fraudsters often leave clues. Refusal to cooperate with open banking requests or an insistence on supplying printed statements can indicate that documents have been altered. Other warning signs include:

• Incorrect tax codes or missing payslip information such as national insurance numbers.
• Large upfront payments offered to secure the property quickly. This tactic aims to distract landlords from doing due diligence.
• Inconsistent employment history, such as short job tenures or multiple gaps in work.
• References that cannot be verified because contact details lead back to the tenant or a friend.
• Reluctance to provide address history, making it harder to check credit history or county court judgments (CCJs).

Spotting red flags early lets you slow the process down. If something feels off, do not rush. Remember you can find more ways to identify problematic applicants in our guide on how to spot red flags when screening potential tenants.

Verify identity properly

The first step is to confirm a tenant’s identity and right to rent. Credas, an identity‑verification provider, advises checking the following:

1. Valid photo ID – passports or driving licences must be genuine. Use digital ID verification software to detect tampered or AI‑generated documents. Avoid relying on utility bills; these can be forged. 
2. Right to rent – landlords must check immigration status under UK law. View original documents, copy them and keep them securely for inspection. 
3. Home address and credit status – confirm the registered address by cross‑referencing it with official registers and checking for CCJs or insolvency. A digital search can highlight adverse information. 
4. Affordability – monthly income should generally be at least 2.5 times the rent. If the tenant’s finances look tight, ask for a guarantor. 

For more detail on checking identity, see our article on best practices for screening potential tenants.

Don’t trust payslips: verify income

Payslips, contracts and bank statements are easy to forge. Applicants may inflate salaries, fabricate company names or cherry‑pick bank statements to hide overdrafts. To counter this:

• Use open banking and HMRC integrations. Modern referencing platforms can connect directly to a tenant’s bank account to confirm income levels, or to HMRC data to verify declared earnings. This reduces the risk of forged payslips.
• Ask for three months’ bank statements and examine them for salary payments from the stated employer and for patterns consistent with the tenant’s spending. Look out for bounced payments or gambling transactions.
• Contact employers using independently sourced details. Do not rely on phone numbers provided by the applicant; instead, look up the company online and call the HR department. Confirm the employee’s role, salary and contract length.
• Reference guarantors thoroughly. If a tenant relies on a guarantor, verify their identity, income and credit history. A guarantor should own property or have sufficient assets and be based in the UK.

If you want to see how persistent arrears can harm your business, read our guide on dealing with rent arrears: strategies for landlords.

Check landlord and character references

Fraudsters often provide fake landlords or friends as references. To avoid being misled:

• Verify landlord ownership via the Land Registry. Use the property’s title number to ensure the person named in the reference actually owns the property. If they don’t, you may be dealing with a fabricated reference.
• Cross‑check contact details. Look up landlords and employers on Companies House, LinkedIn or official websites. Avoid using numbers or email addresses supplied by the applicant.
• Meet prospective tenants in person. Conduct viewings yourself or ask an agent to do so. Meeting face‑to‑face helps you assess whether the applicant matches their ID and documents.
• Ask detailed questions about their reason for moving, previous landlord relationships and how they managed previous properties.

Professional referencing agencies can handle these steps and may have access to additional databases and fraud detection tools. Using an independent third‑party also demonstrates due diligence if disputes arise later.

Adopt technology and best practice

Fraudsters are becoming more sophisticated, but landlords can stay ahead by investing in technology and following established procedures:

• Use digital ID and document verification tools – these employ artificial intelligence to detect tampering.
• Rely on automated credit and income checks rather than manual document review, which is more prone to manipulation.
• Implement a standard referencing process for every applicant to ensure nothing is overlooked. Consider using our step‑by‑step inventory report guide to document the condition of the property before tenants move in.
• Be wary of pressure tactics. If an applicant tries to rush you or offers cash to avoid referencing, treat it as a serious warning sign. 

Being consistent in your screening helps build a pattern of due diligence, making it easier to prove you acted reasonably if a dispute goes to court. It also reduces the risk of discrimination claims because you are applying the same criteria to every applicant.

Conclusion: plan and protect yourself

Tenant fraud can destroy your rental income and create legal headaches. Fake IDs, payslips and staged references are increasingly common, but landlords can protect themselves by verifying identity properly, cross‑checking income through open banking and HMRC records, contacting employers and landlords independently, and refusing to be rushed into a decision. Use digital tools, keep thorough records and follow a standard process every time. If you suspect fraud or need help with the eviction process, our team is here to support you. For professional advice and assistance, explore our tenant eviction service to safeguard your property and ensure you have the right procedures in place.