Property managers today face more than late rent or missed applications. They face organized fraud. One of the fastest-growing and hardest-to-detect threats in the housing industry is synthetic identity fraud. It slips past credit reports, fools traditional screening systems, and creates major financial and legal risk.

The good news? Yardi has partnered with fraud detection leader SentiLink to protect property managers and their communities.

What Is Synthetic Identity Fraud?

Synthetic identity fraud happens when someone creates a fake identity using a combination of real and fabricated information. It often includes a stolen or invalid Social Security number, a fake name, and a made-up birthdate.

The most common version involves something called a CPN, or Credit Privacy Number, which scammers market to renters as a way to “start over” or “hide bad credit.”

But here’s the truth:

• CPNs are illegal
• Many are tied to stolen Social Security numbers (often from minors or deceased individuals)
• Using a false identity on a housing application is fraud

Because synthetic applicants often have no real credit history, they can look like new, low-risk renters. In reality, they have no intention of paying rent or honoring a lease.

Why It’s So Hard to Detect

Traditional screening systems check credit, criminal, and eviction history. But if an identity is synthetic:

• There’s no real credit trail
• Public records come back clean
• Employment and references may be fabricated

This makes it hard for property managers to tell the difference between a legitimate renter with thin credit and a professional fraudster.

That confusion leads to:

• Increased eviction risk
• Loss of rent and unit downtime
• Legal exposure if fair housing laws are misapplied
• Reputation damage if fraud becomes widespread in a community

The Scale of the Problem

According to SentiLink, synthetic identity fraud is the fastest-growing type of financial crime in the United States. It accounts for billions in losses across industries, and housing is a prime target.

Why?

• High-value payouts like rent, deposits, and move-in costs
• Lag time before fraud is detected
• Inconsistent screening practices across properties

Once someone moves in under a fake identity, it can take months to evict them. In that time, the unit is tied up, rent goes unpaid, and staff spends countless hours cleaning up the mess.

How Yardi Is Addressing the Threat

In response to this growing problem, Yardi partnered with SentiLink, a leading synthetic fraud detection platform already used by some of the largest banks in the U.S.

Here’s what the solution includes:

• Real-time synthetic fraud screening during the application process
• Over 1 million verifications daily through SentiLink’s engine
• Deep database of flagged CPNs and suspicious patterns
• No additional cost for properties using Yardi Screening

The integration is already live across Yardi’s Screening platform, helping to catch bad actors before they ever step foot in your community.

What the Data Shows

Since launching the SentiLink integration in March, Yardi has already seen strong results:

• 17,000+ applications screened within weeks
• 3.6 percent flagged as potential synthetic identities
• That’s one fraudulent application flagged every 2 minutes
• Of those flagged, only 16 percent showed issues on their credit report — meaning 84 percent would have passed traditional screening

This underscores just how invisible synthetic fraud is unless you have the right tools in place.

What It Means for Your Property

Stopping synthetic fraud isn’t just about saving money. It’s about protecting your operations and reputation.

With synthetic fraud detection in place, you can:

• Avoid costly evictions and lease breaks
• Reduce time spent on fraud investigations
• Protect your community from bad actors
• Improve the quality of your tenant base
• Maintain higher occupancy with less disruption

It also shows regulators, auditors, and owners that your compliance and screening processes are modern, proactive, and serious about fraud prevention.

Frequently Asked Questions

Is synthetic fraud detection part of my Yardi Screening service? Yes. If you’re using Yardi Screening, SentiLink fraud detection is included at no extra cost.

Does it slow down the screening process? No. The screening happens in real time with no additional wait time for applicants.

What happens when an application is flagged? You receive a report that the identity may be synthetic, along with risk details to support follow-up or denial per your policy.

Can I enable or disable this feature? It is built into the core screening system and works automatically. You don’t have to configure anything.

Final Thoughts

Synthetic fraud is sophisticated, fast-moving, and increasingly common. But with the right tools in place, it can be stopped.

Yardi’s partnership with SentiLink delivers a powerful, invisible layer of protection for property managers. It helps you say yes to the right applicants and no to high-risk fraud before it becomes a problem.

If your leasing process doesn’t include synthetic fraud detection, you may already be at risk — and not even know it.