Learn how fraudsters bypass traditional referencing and how trusted data sources can help agents detect fraud before a tenancy begins.
The Goodlord team
Aug 10, 2026
Originally published: July 2026
Document-based referencing is dead.
Why?
Because tenancy fraud is no longer just a forged payslip here or an altered bank statement there.
Data from Goodlord's latest report, Tenancy Fraud is No Joke, recorded a 78.43% year-on-year increase in referee-flagged tenancy fraud, while confirmed fraud cases rose by 49.37% between 2024 and 2025. Fraud rates also remain significantly above the levels recorded just a few years ago.
But it’s not just the volume of fraud that’s changing. The way fraudsters operate is changing too.
AI has made it easier to create convincing payslips, bank statements and employment references. Increasingly, fraudsters aren't relying on one obviously fake document. Instead, they're building synthetic identities where multiple pieces of information appear to support the same believable story.
And the truth is, the sector has been caught off guard.
Landlords are rightly unhappy. While 36% rank tenant referencing as their number one priority when selecting an agent, 48% also say it’s a top frustration.
The good news is that tech is available to help turn the tide. By combining independently verifiable data, the know-how of on-the-ground agents, and modern referencing technology, agencies can defend against fraudsters.
In this guide, we'll explain how modern tenancy fraud works, why traditional document-based referencing is no longer enough, and the practical counter-fraud steps your agency can take to strengthen its referencing process and reduce risk to landlords.
- What is tenancy fraud?
- Traditional vs modern tenant referencing: What's your risk profile?
- Why trusted data sources are the strongest defence against tenancy fraud
- Conclusion
What is tenancy fraud?
Simply put, tenancy fraud is when a tenant knowingly provides false or misleading information in their application to secure a rental property. A successful fraudulent applicant may use techniques ranging from relatively simple, such as forging documents, to more complex, such as impersonating a different person entirely.
Common examples of tenancy fraud
Fraud can take many forms, but some of the most common examples include:
- Forged financial documents - This includes edited payslips or bank statements.
- Fake employment references - Where applicants invent employers or provide false contact details. Goodlord’s data shows that fake employment references increased by 226.6% in 2025 compared with the previous year.
- Identity manipulation - This includes falsified ID documents and the use of stolen or synthetic identities.* Goodlord also recorded a 140.4% increase in identity manipulation during 2025, including
- Fabricated referee details - These are designed to verify false tenancy or employment histories. Referee fraud increased by 146.4% in 2025, according to Goodlord's latest data.
- False affordability claims - Where applicants misrepresent their income or financial circumstances.
*Identities created via forged documents specifically for fraud
The rise of the synthetic tenant
The common thread across these types of fraud is that fraudsters are moving beyond individual fake documents.
A fake employment reference can support a convincing payslip. The payslip can match an altered bank statement. Together, these documents can create a believable but entirely fictional financial profile.
As these tactics become more sophisticated, agents must take a closer look at unverified documents. After all, sophisticated fraud needs a sophisticated defence. You can no longer rely on an eye-test or a hunch; you need a referencing provider built to recognise fraud.
Traditional vs modern tenant referencing: What's your risk profile?
Tenancy referencing processes are designed to verify that a prospective tenant is who they say they are, can afford the property, and has provided accurate information about their circumstances. As we've already mentioned, the traditional way of doing this involves reviewing physical documents (or at least scans of them) alongside credit and affordability checks.
| Traditional tenant referencing | Modern tenant referencing |
| Relies on tenant-supplied payslips and bank statements | Verifies income and employment via direct integrations with Open Banking, HMRC, and payroll providers |
| Reviews documents visually to assess whether or not they’re genuine | Uses automated processes and dedicated referencing providers to confirm |
| Carries out each check individually | Treats each check as part of a greater whole |
| Assumes supporting documents are accurate unless something looks suspicious | Assumes every claim should be independently verified before it's trusted |
| Focuses on detecting fake documents | Focuses on making fraud difficult to commit in the first place |
| Risk: HIGH | Risk: LOW |
Fraud can strike at almost every stage of an application. This means referencing providers can’t stop at one or two checks. We've broken these stages down here:
Verifying identity
The first step of any investigation is to ensure that the tenant is who they say they are.
This typically involves checking photographic identification, verifying their address history, and checking that their personal details (name, date of birth, etc.) are consistent across the housing application. If there’s something off about the applicant's information, the referencing process will usually stop here.
Many agents still rely on an “eye test” to verify documents. At first glance, fake documents created with modern techniques can be incredibly convincing. Using technology like Identity Document Validation Technology (IDVT) dramatically reduces this risk by digitally verifying a tenant's right to rent.
Confirming employment and income
Employment and income are two of the most important parts of tenant referencing.
Traditionally, agents check payslips, bank statements, and employer references. While using these documents remains an important part of the process, advances in image-editing software and AI tools have made it easier than ever to produce convincing fakes.
To avoid letting to fraudsters, you should use tech-powered referencing services that take proactive steps to counteract these techniques.
For example, Goodlord uses Trusted Sources to verify income and confirm employment (more on that in a moment).
Checking affordability
It's important to remember that income and affordability are two different things. This means agents need to check different sources when investigating them.
While income focuses on how much money the tenant has coming in, affordability checks focus on earnings, existing financial obligations, and credit ratings. Trusted Sources can also help ascertain that everything is above board.
Affordability checks can also stray into territory agents need to handle carefully. Previously, these checks may have considered whether the tenant was the recipient of Universal Credit or a similar government benefit. Under the Renters' Rights Act, it is considered housing discrimination to deny a property to a tenant just because they receive benefits.
Looking for inconsistencies
No single check is designed to identify fraud on its own. Instead, the referencing platform you use should take all of the above checks and compare them.
A genuine application should tell a consistent story about the tenant and their circumstances. Each separate piece of information in an application should build a full, legitimate picture.
An employer's details, a referee's email address, and any information about a previous landlord could be easily falsified. If the information the applicant has given hasn't been independently verified, it can't be trusted.
Even if all the information matches, there's a risk that multiple bad actors could collaborate to create synthetic identities. Referencing services should always check and check again using Trusted Sources.
Why Trusted Sources are the strongest defence against tenancy fraud
It's clear now that traditional referencing processes are increasingly insufficient in the face of increasingly sophisticated fraudsters. That's why Goodlord requires all references that pass through its system to use Trusted Sources to verify all applicants.
What are Trusted Sources?
In simple terms, Trusted Sources is a bundle of leading-edge technologies that help referencing service providers better assess prospective tenants. These sources can vary by provider, but on the Goodlord platform, they include Open Banking, HMRC connections, and the tenant’s payroll provider.
These sources build a more reliable profile of prospective tenants and enable in-depth verification that makes it incredibly difficult for fraudsters to slip by.
Goodlord’s latest data shows just how valuable this can be. Trusted Sources helped identify 9 in 10 confirmed fraud cases at peak adoption.
What can Trusted Sources verify?
Depending on the referencing process, Trusted Sources can help verify key information such as:
- Income - Checking financial information through Open Banking rather than relying solely on uploaded statements.
- Employment - Verifying income and employment information through HMRC or direct-to-payroll data.
- Affordability - Comparing independently verified financial information against the income declared in the application.
- Consistency - Identifying inconsistencies between information supplied by the applicant and information held by an independent source.
The report also found that fraudsters are significantly less likely than genuine applicants to submit information that can be independently verified.
Don't rely on a single check
Trusted Sources aren't a replacement for the rest of the referencing process. The report's findings support a layered approach that combines independently verified information with identity checks, experienced human assessment, and other appropriate fraud controls.
The aim isn't to make the referencing process more difficult for genuine tenants. It's to make it harder for fraudulent applications to succeed.
Conclusion
What’s clear is that fraudsters are no longer relying on the occasional forged payslip or edited bank statement. They're exploiting the limitations of traditional, document-based referencing processes that depend heavily on information supplied by the applicant.
That means agents can no longer rely on documents only looking genuine. Every piece of information they receive needs to be independently verified.
The most effective defence is building a referencing process that combines trusted data sources, automated verification, and experienced agent judgement to create multiple points of verification. That makes it significantly harder for fraudsters to slip through the cracks.
At Goodlord, Trusted Sources help agents move beyond document-based referencing by verifying identity, income, and employment through independent data wherever possible.
Ready to strengthen your referencing process? Get in touch with our team.
