UK estate sector turns to digital tools as ID fraud surges

New research has found that identity fraud is increasing within the UK real estate sector, with a significant rise in incidents being reported by professionals over the past year.

The survey, conducted with 250 real estate professionals across the UK, revealed that 70% of respondents have witnessed an increase in identity fraud cases. Despite the growing scale of the problem, only 14% stated that such cases are regularly reported to authorities.

Credas, a company operating in the identity verification sector, was responsible for the research. The study suggests that the sector is adopting more sophisticated tools in response to the threat, with 65% of fraud cases now being detected using digital or automated methods. This indicates a notable shift towards technological solutions in fraud prevention.

Over half of those surveyed (52%) said they had encountered fake identification documents, demonstrating the evolving tactics being used by fraudsters. Respondents identified fraud as the foremost challenge in the field of ID verification (34%), while concerns about customer experience and operational inefficiency were also cited, at 24% and 20% respectively.

"Fraud is getting worse. But the good news is that technology is not just keeping pace, it's gaining ground. 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. The future of fraud prevention is automated, intelligent, and proactive," Tim Barnett, Chief Executive Officer of Credas, stated, commenting on the situation.

The study highlights a potential gap in enforcement and accountability, as 56% of professionals admitted they rarely or never escalate fraud cases to law enforcement or relevant authorities. This finding raises questions about the effectiveness of the sector's broader response to fraud and may point to underlying concerns over reporting processes, resource limitations, or the perceived outcome of reporting such incidents.

"As fraudsters grow more sophisticated, the message is clear. The real estate industry must adopt more advanced techniques to stay ahead," Barnett said.

The findings indicate that the real estate sector regards the issue of fraud and ID verification as one of its top operational priorities. Firms are increasingly turning to automated verification systems to assist in due diligence, aiming to identify fraudulent documents and activity more efficiently while streamlining the onboarding process for legitimate clients.

The move towards digital solutions comes as the methods employed by fraudsters become more complex, making detection with traditional manual approaches more challenging. Interviewees described a range of identity fraud scenarios, encompassing high-quality forged documents and attempts to exploit gaps in existing processes.

While the report notes that digital identity verification measures can provide more robust defences, the low rate of reporting fraud cases to authorities may hinder wider efforts to tackle criminal activity in the sector. The survey data points to an industry increasingly reliant on technology as both a preventative and investigative measure, while suggesting further work may be needed to address the sector's relationship with law enforcement and regulatory bodies.

The research also outlined secondary concerns among real estate professionals. Customer experience was cited as the second most significant priority after fraud, with firms indicating that seamless verification procedures are increasingly in demand by buyers, sellers, and tenants alike. Operational inefficiency was highlighted as a further consideration.

The evidence from the survey reflects a real estate market under pressure from both external and internal challenges, with technology being adopted as a key line of defence against fraud risk. The data suggests technology is becoming deeply embedded within standard practices for due diligence and client onboarding, providing both increased security and operational benefits for firms who implement such systems.