Eric Johnson is the business manager for NoHo 14, a marquis Alliance property in North Hollywood, just minutes from some of LA’s largest studios. “NoHo 14 is the only high-rise in North Hollywood,” says Johnson. “It is a beautiful property.” NoHo 14 brought in Snappt to help identify fraudulent applications and the ROI was immediate.
Like many residential rental properties, NoHo 14 had a problem with fraud. “All of North Hollywood is challenged by fraud,” according to Johnson. “We see 6 or 7 applications a week that have been fraudulently altered. We see fake pay stubs and altered bank statements all the time, but the fraud is hard to spot with the naked eye.” NoHo 14 saw more than $500,000 in fraud-related losses last year. Costs included eviction costs and unpaid rent.
The COVID-19 pandemic has made the problem worse. “Since COVID-19 hit, we’ve seen an increase in people submitting fraudulently edited documents,” says Johnson. “We are seeing people who have unfortunately lost their job, but take valid documents from months before they were laid off and change the dates.
Johnson brought Snappt in during March of 2020, just as the COVID-19 pandemic emerged. NoHo 14 gives each applicant an online link. The applicant uses this link to submit their financial documentation. Snappt’s proprietary technology
analyzes the documentation, looking for evidence
of fraudulent alterations.
First, Snappt examines image properties to determine if the document has been manipulated. Snappt’s state of the art detection algorithms help detect whether or not a document has been tampered with. Finally, Snappt reviews the document against a historical database to identify
additional micro anomalies.
Ultimately, Snappt certifies whether the documentation is authentic or fraudulent. “It works amazing,” says Johnson.
The ROI for NoHo 14 was immediate and substantial. Johnson is thrilled with the result. NoHo 14 was previously averaging approximately 10 fraudulent applications per month, which averaged $140-160k in bad debt. Thanks to Snappt, these fraudulent applications are now flagged and avoided.
“Property managers are a tight group,” says Johnson. “We talk to each other all the time. I’ve been telling everyone I know about Snappt. I tell them that even if you don’t have a lot of fraud, it’s still a good system to have in place so you avoid the risk.”
“It works amazing, it's been a Godsend.”