As fraud continues to rise in the rental housing market, tenant screening practices are evolving. In an earlier blog, I explored how Observed Data can provide early indicators of income and employment consistency, offering screening companies a way to reduce reliance on costly or time-intensive verification methods.
In this follow-up, I explore two additional tools that strengthen the tenant screening process: Research Verifications and AI-powered Document Review. Used together, these solutions enable a layered approach that boosts both efficiency and prevention of fraud.
Modernized Research Verifications
Manual employment and income and employment checks—once the standard for tenant screening—are time-consuming and often inconsistent. Traditionally, screening companies had to reach out directly to employers and request proof of employment. While still useful, this method puts pressure on internal resources and is not always scalable.
By leveraging digital tools such as conversational AI, online forms, and automated workflows—combined with human oversight—digital-first vendors offer a more scalable and cost-effective alternative to fully manual processes. This approach not only reduces operational costs but also shortens turnaround times, helping screening companies respond faster without compromising accuracy or fraud resistance.
Key advantages:[MJ1]
- Reduces the burden on internal staff
- Ensures consistency and fraud awareness in document review
- Provides a reliable fallback when other verification tools return limited data
This approach is especially valuable when initial data sources yield incomplete results and further confirmation is required.
AI-Enhanced Document Upload and Review
Another common scenario in tenant screening is the submission of income documents by the applicant, often in the form of paystubs or bank statements. Manual review of these documents is prone to error and increasingly vulnerable to sophisticated forgeries, including those generated by artificial intelligence.
AI-powered document analysis tools are now helping screening companies process uploaded documents more securely and efficiently. These platforms typically work by:
- Allowing applicants to upload documents through a secure portal
- Using AI to scan for signs of tampering, fabrication, or inconsistency
- Returning standardized results that are easier to evaluate and compare
By automating the detection of anomalies and potential fraud indicators, these tools reduce the workload for staff while improving the reliability of the review process.
Benefits include:
- Faster review and turnaround times
- Improved fraud detection capabilities
- Greater consistency across applicants
This method is especially useful when traditional employer APIs are unavailable or when screening companies need additional confirmation beyond initial data sources.
A Layered Approach to Verification
By combining different verification methods, screening companies can design workflows that adapt to a wide range of applicant profiles and risk scenarios. A layered strategy might include:
- Starting with an inexpensive source of income or employment data to identify likely matches
- Using AI-based document review when additional validation is needed
- Turning to manual research verifications only when necessary
This cascading process allows screening companies to control costs while maintaining a strong defense against fraud. It also ensures that higher-cost methods are used only when the earlier steps do not provide enough confidence to proceed.
Modern Challenges Require Modern Solutions
Fraud in tenant screening is increasing rapidly. According to industry surveys, over 93 percent of screening companies have encountered fraud in the past year, and the majority have dealt with falsified income documentation. Traditional approaches, especially manual review, are no longer sufficient on their own.
By rethinking verification strategies and incorporating modern tools like outsourced research verification and AI-enhanced document review, screening companies can reduce risk, improve efficiency, and better prioritize their resources.
Learn More
For organizations interested in implementing these types of verification tools, several providers—including Experian—offer services designed to support this layered approach. These solutions can help screening companies strike the right balance between cost, compliance, and fraud resistance. To learn more, visit experian.com/verify.
