In a landscape where con artists are constantly adapting their strategies to exploit others, some unscrupulous individuals have now turned their focus towards potential tenants, capitalising on the uncertainty within the current housing market.
It’s reassuring to note that while fraudulent landlords and letting agents exist, the majority of those in this field are authentic and treat their tenants fairly. Nonetheless, it’s imperative for renters to remain vigilant and well-informed about several online property scams that have surfaced in recent weeks.
Instances of fabricated posts online have emerged, luring tenants to make upfront online deposits. These scams typically involve persuading tenants to prove their financial capability by transferring funds to a friend or relative using a money transfer agent. After this, the tenant is coerced into sending a scanned copy of the transaction to the supposed landlord as evidence of funds.
However, unbeknown to the tenant, this transaction furnishes scammers with enough data to extract the money even before the intended recipient is aware.
While online platforms such as Gumtree actively work to detect and remove these advertisements, some still fall victim to these schemes. To combat this, Action Fraud are spotlighting proactive measures prospective tenants can take to safeguard themselves.
A spokesperson for Gumtree said: “We have a zero-tolerance approach to fraud and our investment in robust tools and filters prevent these types of fake ads from reaching our platform. In 2022, we did not hesitate to remove ads in our To Rent category that we suspected to be potentially fraudulent.
“We know that the majority of our users have a positive experience using Gumtree – we help thousands of people find a place to live, a flatmate, or a tenant every year – and our dedicated safety team continues to review and invest in our safety measures on the site. We work hard to ensure Gumtree is a safe place to find a place to live.”
Fraud Protect Officer Rachel Davies advises: “Prospective tenants should find out whether a landlord is registered with an approved tenancy deposit protection scheme (DPS). Tenants should then also check whether their deposit has been protected or not – they can do that by calling the tenancy deposit protection scheme directly.
“Only ever transfer money to reputable landlords who can prove they are registered with an approved tenancy deposit scheme – ideally you should meet the landlord first and view the property before handing over any cash.”
Some signs to look out for in order to identify and avoid a housing scam include:.”
- Advertisement lacks key details such as complete address, photos, and history.
- Unusual incentives like free moving boxes, packing assistance, or overly tempting perks that seem too good to be true – often indicating a scam.
- Suspiciously low rental prices. Research comparable market rates in the area to determine the authenticity of the listing price.
- Advert skips background or credit checks. Scammers omit these details to attract a broader range of renters, including those with lower credit scores or criminal backgrounds.
- Landlord hesitates to show you the property, using excuses like being out of town or dealing with a family emergency. It is a major warning sign when they don’t even agree to arranging a virtual property tour.
- Landlord demands immediate deposit payment without providing documentation for tasks such as end-of-tenancy cleaning.
- They will often panic you into the payment by saying there is high interest in the unit and that you will need to put in your down payment as soon as possible to reserve it. Never give money to a landlord unless they show you the property and you have a legitimate contract.
If you suspect you’ve fallen victim to a scam, report it to Action Fraud via www.actionfraud.police.uk or call 0300 123 2040.
