Already in 2024, we have seen numerous attempted property frauds across the country. One of the most recent in WA was used as a case study at the 2024 REIWA Innovate Conference. The Verification of Identity (VOI) process was pivotal in uncovering and preventing this fraud attempt and so many others.
It can be tempting to assume that the VOI process will be completed by someone else later, either the lender or the conveyancer. However, the dual-check system that operates across much of Australia in various forms is designed to significantly reduce the risk of property fraud. Given their close contact with vendors early in the sale process, real estate agents play a crucial role in this.
Earlier this year, the Department of Mines, Industry Regulation and Safety (DMIRS) issued a bulletin to Western Australian real estate agents, reinforcing the necessity of rigorous ID checks, especially when the agents cannot meet the sellers in person. Trish Blake, Commissioner for Consumer Protection, further echoed this message at the 2024 REIWA Innovate conference.
At Scantek, we understand the significant regulatory obligations of real estate agents. So, to help ease the burden, we’re committed to providing simple, effective solutions to ensure compliance and reduce risk. Our advanced ID verification technology offers a straightforward way to meet your vendor ID obligations and protect both your business and your clients.
The Importance of Dual ID Checks
VOI obligations in the property sector all boil down to fraud prevention. But when one party assumes another will handle all necessary ID checks, they risk compromising this protective measure. The DMIRS bulletin linked above highlights the critical need for dual checks, where both real estate agents and conveyancers have a role to play in independently verifying the vendor’s identity. Without these identity checks, scammers (who are getting smarter every day) could well be successful in defrauding legitimate property owners.
Why Sighting ID Documents is No Longer Enough
The recently attempted fraud referred to in DMIRS’ bulletin serves as a stark reminder that simply sighting a vendor’s ID documents is not sufficient. Fake ID documents are becoming increasingly realistic, and without back-to-source validations, there is a significant risk that a fake ID may pass as legitimate.
Acting Commissioner Tim Banfield emphasises that identity validation checks are a mandatory part of the sales process in WA. Failure to adhere to these checks can lead to prosecution and severe damage to an agent’s professional reputation. Similar requirements exist across the country.
In fact, the WA Code of Conduct states that if agents or representatives have doubts about the authenticity of an ID document, they are required to verify the document with the issuing authority. In other words, confirming the document’s legitimacy using the Australian Document Verification Services (DVS), a process which is not possible to complete if you simply sight the document.
What You Can Do to Ensure Compliance & Security
Using Scantek’s ID verification technology is a simple and effective way to ensure compliance with industry standards and reduce the risk of fraud. Our industry-leading solution is designed to help real estate agents perform the required ID checks quickly, easily and securely.
Here’s how Scantek can help:
- Efficient Verification Process: Our user-friendly portal allows agents to initiate and complete ID verification quickly and accurately. Verify vendor’s identities without cumbersome paperwork, saving time and reducing administrative burden.
- Advanced Security Features: Our technology utilises biometric and back-to-source DVS verifications to ensure the authenticity of ID documents and liveness checks (especially important when you cannot ID your vendor in person).
- Compliance with Regulatory Standards: Scantek’s digital ID solution is designed to meet the requirements set forth by regulatory bodies across Australia. By using our platform, real estate agents can ensure they are fully compliant with their relevant industry regulations.
Here are Some Practical Steps for Real Estate Agents
To align with best practices and regulatory requirements, it’s suggested that real estate agents adopt the following steps:
- Meet Sellers in Person: Whenever possible, meet the seller face-to-face to verify their identity. Scantek’s In-Person verification tool is perfect for these situations. If an in-person meeting is not feasible, arrange a virtual meeting or use an Australian Embassy Office if the seller is overseas.
- Ask Qualifying Questions: Pose questions that only the true owner would know about their property. This can include details about when and for how much they originally purchased the property, what local government area it is in, and how much the property rates are.
- Verify Documents: Ensure all documents are signed correctly and match any previous records. As mentioned, fake IDs are becoming increasingly realistic, so it’s critical that they’re validated by the issuing authority.
Working Together to Safeguard Australian Property Ownership
Real estate agents play a critical role in preventing property fraud. Typically the first point of contact, they are uniquely positioned to build relationships with their vendors. By performing rigorous identity checks and leveraging technology like Scantek’s ID verification platform, agents can ensure compliance, enhance security, and protect their reputations and clients.
Here at Scantek, we’re available to support you every step of the way. Our technology simplifies the ID verification process, making it easier for you to meet regulatory requirements and reduce the risk of fraud. For more information on how Scantek can help your business, contact us today.