Renters beware: Scam artists are building a house of cards in the real estate market!
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In the quest for a new place to call home, Australians are navigating a challenging rental market, where the demand often outstrips supply.
This has led to a surge in rental scams, with two families recently falling victim to a sophisticated con that left them both homeless, and $10,000 poorer.
The scam operates by exploiting the desperation of potential tenants, and creating fake property ads, often by copying legitimate listings from real estate websites, or using outdated ones.
They then entice eager renters with these too-good-to-be-true offers, pushing them to sign forged tenancy agreements and hand over substantial sums for bonds.
Real estate agent Caleb Reis shared the unfortunate tale of two families who were duped by this scam.
‘They, unfortunately, paid for the property, bond, and the holding deposit, and accepted the property sight unseen. [They’d] signed what they thought was a legitimate lease agreement, came to move-in day, rocked up to the property and there were other occupants,’ Reis explained.
Reis highlighted that this type of scam has become more prevalent in the last six months; not just in Australia, but also in the US, where the Federal Bureau of Investigation (FBI) reported over 11,000 real-estate-related complaints in 2022, with losses exceeding $396 million.
The current rental crisis has created a fertile ground for such scams, and it's essential to approach rental ads, especially those on social media, with a healthy dose of scepticism.
It is advised that before committing to a property, insist on seeing it in person or request a video walk-through to verify that the property matches the images advertised online.
Renters are also discouraged from submitting a bond or paying advanced rent until they've confirmed the legitimacy of the property.
Additionally, it is suggested to conduct an online search to confirm the legitimacy of the listing, and reach out directly to the real estate company to validate the information provided.
During the COVID-19 pandemic, scammers preyed on vulnerable Australians seeking property, leading to over 500 reports of rental scams, and more than $300,000 stolen between January and September 2020.
The Australian Competition and Consumer Commission (ACCC) Deputy Commissioner Delia Rickard warned that these scams could result in the loss of more than just people’s money.
‘The loss of personal information through rental scams is becoming more common, with scammers requesting copies of identity documents such as passports, bank statements or payslips,’ Rickard cautioned.
‘Once a scammer has your personal information, you are at risk of being targeted by further scams or identity theft.’
According to the ACCC, a staggering $3.1 billion was lost to scammers in Australia in 2023, marking an 80 per cent increase from the previous year.
Scamwatch advised to be cautious of scenarios where you're asked to pay a bond or advanced rent before confirming the property's authenticity.
If you suspect you've been scammed, it's crucial to act quickly:
In the wake of recent scams targeting renters, it's crucial for individuals to stay vigilant when seeking rental accommodations.
These scams, as evidenced by the unfortunate experience of a couple losing a huge amount of money to this sophisticated rental scam, serve as a stark reminder for renters to verify the legitimacy of rental properties before making any financial commitments.
As the prevalence of such scams continues to pose risks to renters, it's essential to remain informed and proactive in safeguarding against fraudulent schemes.
Have you or someone you know encountered a rental scam? What are your tips on how to avoid or protect yourself from them? Share your experiences and suggestions in the comments below!
This has led to a surge in rental scams, with two families recently falling victim to a sophisticated con that left them both homeless, and $10,000 poorer.
The scam operates by exploiting the desperation of potential tenants, and creating fake property ads, often by copying legitimate listings from real estate websites, or using outdated ones.
They then entice eager renters with these too-good-to-be-true offers, pushing them to sign forged tenancy agreements and hand over substantial sums for bonds.
Australians were warned against social media ads that might be part of a rental scam after two families lost $10,000 each to scammers. Credits: Shutterstock
Real estate agent Caleb Reis shared the unfortunate tale of two families who were duped by this scam.
‘They, unfortunately, paid for the property, bond, and the holding deposit, and accepted the property sight unseen. [They’d] signed what they thought was a legitimate lease agreement, came to move-in day, rocked up to the property and there were other occupants,’ Reis explained.
Reis highlighted that this type of scam has become more prevalent in the last six months; not just in Australia, but also in the US, where the Federal Bureau of Investigation (FBI) reported over 11,000 real-estate-related complaints in 2022, with losses exceeding $396 million.
The current rental crisis has created a fertile ground for such scams, and it's essential to approach rental ads, especially those on social media, with a healthy dose of scepticism.
It is advised that before committing to a property, insist on seeing it in person or request a video walk-through to verify that the property matches the images advertised online.
Renters are also discouraged from submitting a bond or paying advanced rent until they've confirmed the legitimacy of the property.
Additionally, it is suggested to conduct an online search to confirm the legitimacy of the listing, and reach out directly to the real estate company to validate the information provided.
During the COVID-19 pandemic, scammers preyed on vulnerable Australians seeking property, leading to over 500 reports of rental scams, and more than $300,000 stolen between January and September 2020.
The Australian Competition and Consumer Commission (ACCC) Deputy Commissioner Delia Rickard warned that these scams could result in the loss of more than just people’s money.
‘The loss of personal information through rental scams is becoming more common, with scammers requesting copies of identity documents such as passports, bank statements or payslips,’ Rickard cautioned.
‘Once a scammer has your personal information, you are at risk of being targeted by further scams or identity theft.’
According to the ACCC, a staggering $3.1 billion was lost to scammers in Australia in 2023, marking an 80 per cent increase from the previous year.
Scamwatch advised to be cautious of scenarios where you're asked to pay a bond or advanced rent before confirming the property's authenticity.
If you suspect you've been scammed, it's crucial to act quickly:
- Contact your bank immediately to halt transactions, and prevent further monetary loss.
- Report the scam to Scamwatch, and file an official police complaint.
- Be wary of follow-up scams, particularly those claiming they can recover your lost funds. Scamwatch notes that one in three scam victims are targeted again.
- Seek support for yourself. Financial counsellors, BeyondBlue on 1300 22 4636, and Lifeline on 13 11 14, offer resources and crisis support to help you cope with the aftermath of a scam.
In the wake of recent scams targeting renters, it's crucial for individuals to stay vigilant when seeking rental accommodations.
These scams, as evidenced by the unfortunate experience of a couple losing a huge amount of money to this sophisticated rental scam, serve as a stark reminder for renters to verify the legitimacy of rental properties before making any financial commitments.
As the prevalence of such scams continues to pose risks to renters, it's essential to remain informed and proactive in safeguarding against fraudulent schemes.
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