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Spirited - Case Study - NoHo14

NoHo 14 Case Study

Learn how NoHo 14 uses Spirited to fight sophisticated fraud and decrease evictions.
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NoHo 14 stops fraud-related losses with Spirited

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 Spirited to help identify fraudulent applications and the ROI was immediate.

The Problem

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.

The Solution

Johnson brought Spirited 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. Spirited’s proprietary technology
analyzes the documentation, looking for evidence
of fraudulent alterations.

First, Spirited examines image properties to determine if the document has been manipulated. Spirited’s state of the art detection algorithms help detect whether or not a document has been tampered with. Finally, Spirited reviews the document against a historical database to identify
additional micro anomalies.

Ultimately, Spirited certifies whether the documentation is authentic or fraudulent. “It works amazing,” says Johnson.

The ROI

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 Spirited, 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 Spirited. 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.”

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Eric Johnson
Business Manager at NoHo 14 

“It works amazing, it's been a Godsend.”
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