Queenslanders lose more in rental scams, some victims left homeless
- Replies 2
As the weight of the housing crisis bears down on many Australians, some are not only losing the roof over their heads but also their money to brazen rental scams.
Simon Alexander, 39, moved to the Sunshine Coast from the regional town of Goomeri, west of Gympie, to pursue a nursing career.
He said his search for a home became desperate after he was forced out of his first rental property after only a fortnight because his housemate was found to be subletting without approval.
Eventually, he found another rental through Facebook, and the advertiser took him through a video walk-through of the property.
"I shouldn't have trusted anyone, but I was a bit desperate," Mr Alexander said.
He supplied personal information to the scammer along with a $1,200 bond payment and $600 for rent in advance, only to find it already occupied when it was time to move in.
"They owned the place, and they knew nothing of this person [the scammer].
"[We were] around the same age … and they had quite a number of friends, it was very believable".
In a vulnerable position, Mr Alexander experienced the same situation again.
Another listing he was looking at was occupied by someone who had no idea a scammer was trying to rent out their home online.
Mr Alexander became homeless as a result of the repeated scams after losing more than $4,000.
Even the cost of attending his nursing course became too much, and he was forced to quit.
He said seeking help while sleeping rough had been difficult, and access to community services and housing was almost non-existent.
"All these community services are stretched thin … [The Department of Housing] actually gave me a gift voucher to go buy a tent," he said.
"I want people to learn from my mistakes. I want people to become more educated around how to avoid these things."
Mr Alexander recently found a temporary place to stay and has gained work as a cleaner, with plans to move into more secure housing soon.
Data reveals increasing issue
Data provided to the ABC by IDCARE, a non-for-profit national identity and cyber support service, exposed a notable increase in the amount of money Australians were losing to rental scams.
Total monthly losses to rental scams nearly tripled in Queensland in the past year, with the average loss per scam case doubling in the five months from November to March from $2,280 to $4,683.
Queenslanders are losing more to these kinds of scams than anywhere else in the country, with average personal losses about 60 per cent higher than the national average.
IDCARE spokeswoman Kathy Sundstrom said more than 60 per cent of rental scams were on social media, with 80 per cent coming from organised crime groups overseas.
"It's becoming harder for them [the scammers] to create new accounts so what they prefer to do is to compromise existing ones that take over your account and contact people pretending to be you.
"It's far more effective because you have a history … you have a reputation, you have friends, you're so much more believable than just creating a new account."
Sunshine Coast grandmother and former Australian Taxation Office (ATO) debt collector Paula Ford turned to local Facebook groups because the National Rental Affordability Scheme (NRAS) was ending.
"I had to change jobs because this is an NRAS house," she said.
"And the rent was doubling, so I needed to get a job where I could afford to pay the rent but, as it turned out, it didn't work out, given my mental illness."
But as she inquired about two properties listed in the groups, she was not expecting to be asked to make up-front payments to meet the advertiser.
She said she was grateful for her time at the ATO, which prepared her for dealing with scammers.
"She [the scammer] wouldn't meet with me … unless I gave her a $100 Apple gift card," Ms Ford said.
"Working at the ATO [they taught us] that's one of the scams that they use on people to pay their ATO debt."
Application fee is a warning sign
Queensland's Rental Tenancy Authority (RTA) recommends that those who have experienced a rental scam report the matter to the Office of Fair Trading, or police if it involved fraud.
The RTA also urged people to look up the history of the property and the person who listed it before sending any money, as more than 90 per cent of rentals in the state were managed by real estate or property agents.
A copy of the tenancy agreement must be given to tenants before any money is paid, and a property owner or manager cannot charge a future tenant an "application fee".
Ms Sundstrom from IDCARE said people should report suspicious profiles to Facebook and set up two-factor authentication to protect their own social media profiles.
"It's really important that people think about how they go about looking for a rental property and you have to be so careful on those [Facebook] community groups," she said.
Written by Jay Carstens, ABC News.
Simon Alexander, 39, moved to the Sunshine Coast from the regional town of Goomeri, west of Gympie, to pursue a nursing career.
He said his search for a home became desperate after he was forced out of his first rental property after only a fortnight because his housemate was found to be subletting without approval.
Mr Alexander says he lost thousands of dollars as a result of social media rental scams. (ABC Sunshine Coast: Jay Carstens)
Eventually, he found another rental through Facebook, and the advertiser took him through a video walk-through of the property.
"I shouldn't have trusted anyone, but I was a bit desperate," Mr Alexander said.
He supplied personal information to the scammer along with a $1,200 bond payment and $600 for rent in advance, only to find it already occupied when it was time to move in.
"They owned the place, and they knew nothing of this person [the scammer].
"[We were] around the same age … and they had quite a number of friends, it was very believable".
Mr Alexander moved towns to pursue a nursing course but found himself targeted by rental scammers. (ABC Sunshine Coast: Jay Carstens)
In a vulnerable position, Mr Alexander experienced the same situation again.
Another listing he was looking at was occupied by someone who had no idea a scammer was trying to rent out their home online.
Mr Alexander became homeless as a result of the repeated scams after losing more than $4,000.
Even the cost of attending his nursing course became too much, and he was forced to quit.
He said seeking help while sleeping rough had been difficult, and access to community services and housing was almost non-existent.
"All these community services are stretched thin … [The Department of Housing] actually gave me a gift voucher to go buy a tent," he said.
"I want people to learn from my mistakes. I want people to become more educated around how to avoid these things."
Mr Alexander recently found a temporary place to stay and has gained work as a cleaner, with plans to move into more secure housing soon.
Data reveals increasing issue
Data provided to the ABC by IDCARE, a non-for-profit national identity and cyber support service, exposed a notable increase in the amount of money Australians were losing to rental scams.
Queenslanders are losing more money on rental scams than any other state. (ABC News: Mark Leonardi)
Total monthly losses to rental scams nearly tripled in Queensland in the past year, with the average loss per scam case doubling in the five months from November to March from $2,280 to $4,683.
Queenslanders are losing more to these kinds of scams than anywhere else in the country, with average personal losses about 60 per cent higher than the national average.
IDCARE spokeswoman Kathy Sundstrom said more than 60 per cent of rental scams were on social media, with 80 per cent coming from organised crime groups overseas.
"It's becoming harder for them [the scammers] to create new accounts so what they prefer to do is to compromise existing ones that take over your account and contact people pretending to be you.
"It's far more effective because you have a history … you have a reputation, you have friends, you're so much more believable than just creating a new account."
Paula Ford credits her time working at the tax office for knowing how to spot a scammer. (ABC Sunshine Coast: Jay Carstens)
Sunshine Coast grandmother and former Australian Taxation Office (ATO) debt collector Paula Ford turned to local Facebook groups because the National Rental Affordability Scheme (NRAS) was ending.
"I had to change jobs because this is an NRAS house," she said.
"And the rent was doubling, so I needed to get a job where I could afford to pay the rent but, as it turned out, it didn't work out, given my mental illness."
But as she inquired about two properties listed in the groups, she was not expecting to be asked to make up-front payments to meet the advertiser.
Ms Ford realised she was being targeted by rental scammers when they asked for an up-front payment. (ABC Sunshine Coast: Jay Carstens)
She said she was grateful for her time at the ATO, which prepared her for dealing with scammers.
"She [the scammer] wouldn't meet with me … unless I gave her a $100 Apple gift card," Ms Ford said.
"Working at the ATO [they taught us] that's one of the scams that they use on people to pay their ATO debt."
Application fee is a warning sign
Queensland's Rental Tenancy Authority (RTA) recommends that those who have experienced a rental scam report the matter to the Office of Fair Trading, or police if it involved fraud.
The RTA also urged people to look up the history of the property and the person who listed it before sending any money, as more than 90 per cent of rentals in the state were managed by real estate or property agents.
Ms Ford received multiple messages from rental scammers as she searched for a new home on social media. (ABC Sunshine Coast: Jay Carstens)
A copy of the tenancy agreement must be given to tenants before any money is paid, and a property owner or manager cannot charge a future tenant an "application fee".
Ms Sundstrom from IDCARE said people should report suspicious profiles to Facebook and set up two-factor authentication to protect their own social media profiles.
"It's really important that people think about how they go about looking for a rental property and you have to be so careful on those [Facebook] community groups," she said.
Written by Jay Carstens, ABC News.
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