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Stories · 3
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Thousands in London Face Incorrect Benefit Cuts From Automated Fraud Detector (sky.com)
Thousands of people could soon be receiving letters threatening to cut off vital housing benefits as they face being incorrectly targeted by a new automated fraud detector. From a report: The government-backed London Counter Fraud Hub, developed by BAE, has been hailed a success after being trialled in four boroughs - Camden, Ealing, Croydon and Islington. Using vast quantities of data from millions of households, it is designed to target potential fraud cases involving the single person council tax discount, subletting in local authority housing and business rate relief and rating.
Ealing, the lead council for the project, found the automated elements of the system targeting single person discount fraud was 80% effective -- which is seen as an acceptable benchmark. With just over one million claimants of council tax single person discount in London, the London Counter Fraud Hub estimates it will detect around 40,000 fraudulent cases in the first year. Critics say the 20% error rate is unacceptable as around 8,000 people will receive letters wrongly accusing them of fraud. -
Cities Struggling To Crack Down On Airbnb Renters (latimes.com)
An anonymous Slashdot reader writes: A California man has been charged with eight misdemeanors for renting several apartments under his own name, and then subletting them all. "Apartments in Santa Monica that might fetch $3500 a month as ordinary rentals, are worth three or four times that on a daily or weekly basis," reports one newsweekly, and the subletter notes that he only received two years of probation plus a $3,500 fine, "what one of my properties makes in a month." On Wednesday three prominent U.S. Senators "called for a regulatory probe into whether short-term rental websites such as Airbnb are taking housing away from long-term renters and pushing up prices," but the number of Americans planning to use Airbnb this summer has apparently already doubled since last year.
The Hotel and Lodging Association of Alaska is complaining that the state's renters "are not required to follow the same state and federal safety mandates that are required for other hotels and lodges creating an unsafe and unfair market for consumers as well as hoteliers." But it seems like currently the only pushback is coming from local and city officials, like the short-term rental rules that Airbnb is currently fighting in their home city of San Francisco. For example, in Maine, the owner of one of Portland's 425 rentals units is now fighting a city order "demanding that he stop renting out part of his home through Airbnb. "Portland has a limited staff to enforce zoning rules, so it comes down on the most egregious cases, said City Hall spokeswoman Jessica Grondin."
I laughed at the quote from the City Hall spokeswoman. "It's kind of like speeding on the highway. You know it is illegal, you do it anyway, and you get caught." -
Landlords Want a Share of Renters' Airbnb Revenue (thestack.com)
An anonymous reader writes: A group of leading U.S. property owners, including AvalonBay Communities and Camden Property Trust, have met with lodging rental site Airbnb to discuss ways that they can get a cut of their renters' income. The tech company has faced obstacles to its growth, with residents putting their leases in jeopardy by renting out their places to Airbnb users as temporary accommodation – a form of illegal subletting. A future agreement between owners and tenants could mean renters no longer need to take a risk when letting their apartments on the site.