Consumer Protection is concerned that people eager to secure a rental property in a tight market are falling victim to scammers who place fake ‘to let’ advertisements.
Acting Executive Director for Consumer Protection, Penny Lipscombe said that so far this year Consumer Protection had received 40 reports of rental scams with 21 victims losing a total of $41,000.
In 2021, there were 48 reports with 18 victims losing $32,320, she said.
“Many of the victims respond to fake social media ads before being lured into making hasty decisions and transferring money to secure a rental property without carrying out proper checks,” Ms Lipscombe said.
“Also, be cautious when posting a wanted ad as scammers may respond.”
She said that when transactions were carried out through instant messages, email or by text, it was very easy for scammers to remain anonymous and provide false information.
“Prospective tenants are advised to have a face-to-face meeting with the owner or their agent and not accept any excuses for them not being able to physically attend,” she said.
“Those who are seeking a rental home outside of their area may wish to consider arranging for someone else to inspect the property or perhaps engaging a local licensed real estate agent/property manager to act on their behalf.”
Ms Lipscombe said social media users needed to be mindful of the information they provided during the transactions as the people behind fake profiles might be able to extract data that allowed them to commit future fraud.
“Suspected fake profiles should always be reported to the social media platform, as they are likely attempting to target others too,” the Acting Executive Director said.
She said Consumer Protection was advising private landlords, real estate agents and property managers to take measures that may reduce the chance of advertisements for legitimate rental homes being pirated.
“While there is a widespread industry practice of watermarking photos of homes for rent, this appears to be used more as a marketing exercise than a cyber-security measure,” Ms Lipscombe said.
“Watermarking may discourage scammers from using those photos in a fake ad, so I would encourage all property owners and managers to adopt this practice,” she said.
