RENT Magazine Q3 '23

Running a background check on tenants and vendors is crucial for safeguarding your investments. Yet, many individuals fail to realize the potential risks they expose themselves to by neglecting proper screening practices. TRUST NO ONE, CHECK THEM OUT: GROWING FRAUD AND THE IMPORTANCE OF BACKGROUND CHECKS

In this article, we will explore the significance of background checks on not just your tenants, examine alarming statistics on fraud, and delve into liability issues that arise from hiring unlicensed contractors. Additionally, we will provide case

studies highlighting the consequences of inadequate screening and offer practical steps to ensure you engage with trustworthy individuals and businesses.

STATISTICS: THE GROWING THREAT OF FRAUD According to the Federal Trade Commission's findings, fraud remains a prevalent concern in our society. In 2022, the top five fraud categories were imposters, online shopping scams, prizes and lotteries, investment fraud, and business and job opportunities. Shockingly, there were 2.5 million reported fraud

figures. Investment scams alone accounted for losses that more than doubled from $1.8 billion to $3.8 billion, while losses due to business imposters surged from $196 million in 2020 to $660 million in 2022. The introduction of advanced technologies and AI has further heightened the sophistication of fraud, making it imperative for individuals to exercise caution in all their dealings.

cases, resulting in a staggering loss of $8.8 billion—an increase from the previous year's


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