According to a survey of 1,201 UK homebuyers carried out on behalf of identity verification provider Credas Technologies, nearly a third (30 per cent) said their estate agent did not ask to see proof of residence, such as a utility bill.
Tim Barnett, chief executive of Credas Technologies, said: “For the vast majority of those operating within the property industry, failing to verify the identity of a potential buyer may sound unbelievable. Not only is there a legal requirement to do so, but it can also be incredibly detrimental should they fall foul of criminal activity.
“Unfortunately, it does happen more often than you may think, particularly for those attempting to verify a vast number of buyers on a manual basis.”
Lawyers and brokers failing to check ID
When it came to a lawyer seeking proof of identification once a sale got underway, 13 per cent of buyers surveyed said their lawyer or solicitor never asked to see an ID, and 18 percent said their mortgage brokers hadn’t asked either.
Barnett put the lapses down to oversights caused by “stretched resources, rather than a cavalier attitude on the part of property industry professionals.”
He added that using a bonafide onboarding platform would prevent a transaction from progressing if the buyer’s identity had not been confirmed: “Not only does this approach save time, money and resources, but it reduces the chance for criminal entities utilising the industry to launder their ill-gotten gains.”
