From stolen heavy equipment to vanishing tools—rental fraud is on the rise. The worst part: most fraudsters disappear without a trace. This leaves equipment rental businesses grappling with the impact of stolen equipment, lost revenue, and costly operational disruptions. These incidents don’t just put your business at risk, but they’re entirely avoidable.
In this article, you’ll discover just how deep the rental fraud market runs, and learn about the innovative ID verification solutions that are giving criminals a run for their money.
Across the globe, businesses are grappling with rental fraud. In Canada, $837K in heavy equipment was fraudulently stolen in 2023 from multiple heavy machinery dealers throughout the province—targeting businesses in Calgary, Edmonton, Airdrie, and Red Deer—and was believed to be the result of using stolen identities. In a separate but similar incident, a man provided false names to tool rental stores, stealing tens of thousands of dollars worth of stolen equipment. Further west in Vancouver, a man was charged with stealing $150K in equipment from multiple Home Depot locations after renting items with a false name.
But these events aren’t just commonplace in Canada. In 2024, there were more than 11 Home Depot locations affected by 25 rental fraud incidents in the United States. Individuals in Oregon, Florida, Washington, Colorado, and Atlanta used stolen credit cards to rent equipment from the home improvement retailer and sell it online, resulting in over $400K in losses.
In the UK, equipment rental fraud is a significant concern—with recent reports highlighting its impact on the construction industry. In the first quarter of 2023, there was a 300% increase in construction machinery sales fraud, leading to losses exceeding £100 million for construction companies.
In Australia, one of the most prominent incidents of equipment rental fraud occurred when Forum Finance, an office equipment leasing company, was accused of arranging a $500 million fraud—involving falsified equipment leases that led to financial losses.
It’s clear that rental equipment fraud is a pervasive problem around the globe. The solution? Proactive protection through advanced ID verification technology, helping equipment rental companies get ahead of fraud before it happens. But before we dive into the fix, let’s take a look at what rental fraud could cost your business.
Rental fraud can cause staggering financial losses for equipment rental businesses, since stolen heavy equipment and unreturned assets are often costs that can’t be recovered—especially in the case of specialized or high-value equipment. Often, businesses have no way to recover the funds, leaving them no choice but to absorb the losses.
Then there’s the matter of insurance. Navigating complicated rental equipment insurance claims can be a time-consuming headache, and it doesn’t always result in regaining the full value of stolen items. Even when businesses can successfully recover some costs, dealing with these claims can be a significant distraction from day-to-day business activities, harming productivity. Plus, missing equipment can disrupt schedules and delay timelines, further impacting business operations.
Aside from the financial aspect, one of the most damaging results of equipment rental fraud is diminished trust. In a competitive market where credibility and customer service are everything, and in an industry where partnerships matter, fraud is a red flag. Poor security may lead to a business being perceived as vulnerable. Over time, this loss of trust can jeopardize a business’ reputation and revenue.
Advanced ID verification technology is the simple but effective solution for rental businesses that want to stay ahead of fraudsters. By verifying the authenticity of customers' identities—just as you would when you check into a flight at the airport or take out a loan at the bank—your rental business can reduce the risk of stolen heavy equipment, encourage smoother operations, and mitigate instances of complex rental equipment insurance claims.
Here are three ways that ID verification technology can protect your integrity and create a more secure rental process:
Fraudsters rely on fake or stolen identification to rent equipment. ID verification technology helps stop them in their tracks. With a simple scan of their ID, Patronscan’s anti-fraud ID verification solution can confirm whether a customer is who they claim to be by validating government-issued IDs, detecting fake documents, and flagging suspicious activity. This creates an added layer of verification, which minimizes the chances of fraudulent transactions and ensures that equipment is only rented to legitimate customers.
By verifying identities, your business prevents theft. This proactive approach lessens risks such as stolen heavy equipment, operational disruptions, and revenue losses—challenges that are often expensive and difficult to navigate.
Implementing ID verification systems also provides your business with a strong legal foundation. Having verifiable identity records makes reporting fraudulent activity easier for authorities or rental equipment insurance providers. If a customer chooses not to return their equipment, our system flags them in case they try to rent again at another location owned by you.
ID verification technology doesn’t just protect a company’s assets, it also creates trust and security within a business—for employees and employers alike. Customers can feel good about renting from businesses that prioritize safety and accountability, and employees can feel confident knowing they are serving trustworthy customers. Plus, a focus on security can enhance a company’s reputation, positioning them as a reliable, fraud-resistant business.
Patronscan digital ID scanners and validation software act as an anti-fraud solution. This technology can help your equipment rental business stay ahead of fraud, protect its assets, and create a safe and efficient work environment.
While the majority of ID scanners miss sophisticated fake IDs, Patronscan’s proprietary technology reliably catches fake IDs by performing advanced analysis on both the front and back of an ID. With over 15 years of experience flagging fake IDs, Patronscan works by using advanced algorithms that identify discrepancies in factors like fonts, spacing, and layouts to determine whether an ID is authentic.
Interested in learning more? Connect with the team to learn about how our ID scanning technology can protect your business against identity fraud.