Utility Week

28 | 13TH - 19TH APRIL 2018 | UTILITY WEEK Customers Market view Change of tenancy fraud Change of tenancy fraud is a major issue for utilities but detailed data can help tackle the problem, says Sarah Lewis. C hange of tenancy fraud occurs when a period of tenancy and energy use is attributed to another person or tenant. This can be a relatively commonplace occur- rence when, for example, people genuinely move into a property but provide a false date of occupancy to avoid paying bills for a cer- tain period. Alternatively, an occupier may declare they have moved out of a residence while remaining in the property and eluding the debt owed under the previous period. As with nearly all cases of fraud, the scale of tenancy fraud is hugely understated. Some businesses estimate it could account for as much as 18 per cent of their bad debt prob- lems. The main challenges of tenancy fraud are the difficulty in locating the responsible debtor and the energy, time and cost associ- ated with collection. This is because there is no widely used or definitive method of detect- ing, measuring and tackling the problem. Individuals can oen go to extraordinary lengths to avoid paying utility bills. In one case in the UK, a perpetrator lived in a house that had previously been two semi-detached houses. The interior dividing wall had been knocked down but the two front doors remained in place. A strategy was employed by the occupier to open the "neighbouring door" whenever a collections agent knocked at the door and have a "neighbour" tell the collector the occupant they were looking for had moved out. Utility companies have developed strat- egies to spot this type of fraud, using geolocation details customers provide and measuring the levels of energy used by "the occupier". However, these methods are not comprehensive and can commonly lead to false positive results. As a consumer credit agency, we've been working to tackle the issue, exploring ways in which data assets from diverse sources can add accuracy to the identification process. The use of data is being incorporated to help trace people, confirm residencies and build cases. Identifying change of tenancy fraud with accuracy at an early stage in the process means utility companies can take decisive action, limiting the resource burn on investigative actions while improving prof- itability and service levels for law-abiding customers. It is difficult to enforce a tight identity verification policy across all of society and there is a data lag with changing addresses that places ownership of debt into a state of flux. If an individual moves to another residence where the same utility company is contracted to provide services, the provider can establish a clear link that helps identify and track down debt. Confirming data at an individual's previous address can also pro- vide a chain of identity, making it easier to establish the right person to contract with. In potential cases of change of tenancy fraud, there is usually a mix of circumstances that indicate suspicious activity. This is an area where wider data assets can add value in discerning which cases need further inves- tigation. Having access to and using multi- ple data metrics such as residency periods records, electoral role information, property sales and rental data, alongside information supplied by fraud-sharing networks, can create a more detailed picture to help utility companies minimise and recover bad debts. This type of fraud can now be tackled through the use of the computing power available in "big data" engines, empower- ing utilities with greater speed and flex- ibility. Highly intuitive, bespoke suites of data-driven solutions that incorporate AI can now be employed to detect fraud more accurately. The systems are built to evolve, grow, learn and constantly adapt to become increasingly proficient at detecting fraud and identifying the individuals behind the crime. Fraud detection is a perpetual game of cat and mouse, with fraud occurring wherever utility providers have weaknesses in their defences. Fraudsters are resourceful and savvy when it comes to identifying new and novel ways to rig the system, reiterating the importance of a flexible, adaptable system to fight the problem. To remain one step ahead, utilities need to harness the latest data-rich tools in fraud detection. Sarah Lewis, head of ID & Fraud Strategy UK at Equifax Centrica expands Local Heroes service Centrica has added new trades to Local Heroes – its digital service which helps customers find trusted tradespeople – in a bid to strengthen its position in the £5.7 billion on-demand home services market. Painters, decorators, lock- smiths, tilers and handymen and women will join the list, which already connects customers with 7,000 plumbing, heating, electri- cal and draining experts across the country. Tradespeople in the Local Heroes network are qualified, accredited and insured. Price estimates are provided before work starts and work undertaken is backed by a 12-month British Gas guarantee. Mat Moakes, Local Heroes director, said: "Through Local Heroes, Centrica is now providing home services that go beyond its traditional boiler repair, electrics and plumbing offering. This means we're able to give people more choice when it comes to finding a trusted tradesperson to carry out work in their home." Scots mark decade of water competition Scotland's non-domestic water market is celebrating ten years of being open to competition, having allowed businesses to choose their water supplier since April 2008. Business Stream, the busi- ness retail arm of Scottish Water, said it had delivered more than £160 million of savings to cus- tomers since market opening. The company bought the non-household customer base of Southern Water aer the market opened in England. The English water retail market – the largest of its kind in the world – marked its first anniversary on 1 April, but only 2.9 per cent of 1.2 million eligible customers have switched in the first year, according to Ofwat. Home truths

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