Common Skip Tracing Methods Used in Accounting

Skip tracing is the act of collecting information on a hard-to-find individual in order to locate them. “Skip” derives from the commonly used phrase “to skip town” and refers to the person who needs to be found. “Tracing” refers to the act of tracking them down.

Finding elusive individuals might seem like the work of a detective, but it is an important skill for qualified process servers. Whether a person does not want to be served or lives in an isolated location, it is common for process servers to require skip tracing in order to complete their services successfully.

Below are some common skip tracing methods used in finding people:

Database Searches:

This involves using both public and private databases to collect information about the person who owes money. These may include credit reports, public documents, utility bills, and other financial records.

Social Media and Online Activity:

By looking at a person’s social media profiles and online presence, one can often find clues about their location, job, and lifestyle.

Phone Number and Address Checks:

This step includes checking phone numbers and addresses using phone books, reverse phone lookup tools, and online address checkers.

Reaching Out to Known Contacts:

Skip tracers may contact family members, friends, employers, or other people the debtor knows to find out where they might be.

Public Records:

This includes reviewing court records, property ownership records, business registrations, voter rolls, and vehicle registrations to locate the person.

Credit Reports:

Looking at recent credit activity through a credit bureau can reveal new addresses or other financial changes that help locate the person.

Postal Services:

Checking with the post office for forwarding addresses or any change-of-address forms the person might have filed.

Field Visits:

Visiting the last known home or workplace in person to speak with neighbors, landlords, or others who may have useful information.

Hiring Professionals:

In some cases, companies may hire experts who specialize in skip tracing and have more advanced tools to find hard-to-locate people.

Utility and Service Providers:

Checking with companies that provide electricity, water, internet, or cable services to see if the person has opened any new accounts.

These techniques are used to collect as much information as possible to help locate the person who owes money, so the business can take the next steps to recover what is owed.

Example of How Skip Tracing Works:

Let’s look at how skip tracing might be used in a real situation.

ABC Financial Services is trying to find John Doe, who stopped paying back a personal loan and has not replied to any calls or messages. His last phone number and address are no longer valid. To find him, ABC Financial Services uses a series of skip tracing methods.

Step-by-step Techniques Used:

Database Searches:

• Credit Report: They pull John Doe’s credit report to check for any recent activity, like a new credit card, that could show his current address or job.
• Public Records: They look through property records, court cases, and business registrations under his name.

Social Media and Online Activity:

• Social Media Profiles: They search John’s Facebook, Instagram, LinkedIn, and Twitter accounts. They see a new photo tagged in a different city.
• Online Searches: A quick web search shows he took part in a local event, giving another clue about where he may be now.

Phone Number and Address Checks:

• Reverse Phone Lookup: They use a service to check if his phone number now belongs to someone else or is tied to a new address.
• Address Verification Tools: These tools confirm whether his old address has been updated with any new contact details.

Contacting Known Associates:

• Friends and Family: They call people listed as references on his loan application to ask if they know where he is.
• Previous Employer: They contact his last employer to see if there’s any updated information on him.

Postal Services:

• Change-of-Address Requests: They check with the postal service to see if he submitted a request to have mail sent to a new address.

Field Visits:

• Home Visit: An agent visits his last known address and talks to the current residents and nearby neighbors to get possible leads.

Utility and Service Providers:

• Utility Records: They contact local providers to see if he has started any new utility accounts.

After using these methods, ABC Financial Services finds out that John Doe recently moved to a nearby city and got a new job. They confirm his new address through a credit card application shown on his credit report. With this information, the company can now reach out to him to work on paying back the loan or consider legal action if needed.

This example shows how skip tracing can be done using different tools and sources, combining technology, public records, and direct contact to find someone who has stopped responding.