We all know how competitive the current rental market is, so finding somewhere to call home can be an overwhelming task. Scammers are unfortunately using this to prey on unsuspecting renters.
“Rental scammers exploit the desperation of those seeking housing, particularly when the cost-of-living is high and available properties are scarce, compounding the challenges of an already difficult market,” COBA Chief of Financial Crimes and Cyber Resilience Leanne Vale said.
“Becoming a victim to a rental scam can be a devastating experience, both financially and emotionally,” she added.
In this blog, COBA’s Financial Crimes and Cyber Resilience team have shared some of their expert tips on how you can spot and avoid rental scams.
How rental scams work
Scammers prey on people who are searching for rental accommodation, which includes holiday rentals as well as residential rentals, and there are various tactics the fraudsters use.
A common method used involves advertising fake properties known as “phantom rentals”. These are listings that have photos and descriptions that have been taken from legitimate listings. Often these listings will be very enticing with appealing rental prices, locations or even exclusive amenities. This is how they lure victims in.
One other tactic the scammers may use is taking legitimate rental listings from reputable websites & platforms, then reposting them but with different contact information or photos. This means any enquiries or payments will be diverted to the scammer, as they’ve tricked the unsuspecting tenants into believing the scammers are the real property owner, real estate agent or property manager.
A sense of urgency such as pressure for upfront payments especially via methods that aren’t traceable like wire transfers or cryptocurrency can be a red flag also. They’ll claim it’s necessary to secure the rental.
The scammers could also request personal information such as bank account details or ID documents, under the pretence of conducting rental or background checks. They can use this information to steal the identity of the victim or commit fraudulent activities.
Rental scam indicators
You can protect yourself by being alert to the signs of a rental scam. Here are some red flags to be aware of:
- An ad for a rental property seems too good to be true. This could be that the price is low, little information is requested of you, and it’s available for the exact time you want.
- You’ve found that there are duplicate ads for the same property with different contact details – this can include a listing on a trusted site.
- The ‘landlord’ or ‘property manager’ uses a strong sense of urgency to get the renter to make immediate decisions and/or payments to secure the property and not ‘lose out to someone else interested’.
- If there is not an availability for an in-person meeting or property inspections due to many reasons. They will always have an excuse as to why they can’t meet. Requests for funds to be sent by methods that are hard to trace, such as wire transfers, prepaid cards, or cryptocurrency.
- There is a lack of documentation, with no formal rental agreements, no receipts for payment, or refusal to provide any verifiable information about the property or landlord.
How to report a rental scam
If you encounter a suspected rental scam, report it to your bank if you have provided any payment or identification information.
It’s important that if you do encounter a suspected rental scam, that you report it. If you have provided any payment or personal banking information, report it to your bank immediately.
Even if you've managed to avoid losing money, reporting is still crucial to help prevent further fraud and assist other potential victims – report the scam to National Anti-Scam Centre (NASC) - Scamwatch.
If you suspect you have been a victim of a scam, contact us immediately on 1300 366 565 or fill out this form so we can secure your accounts and assist you further. Customer-owned banks are dedicated to safeguarding their customers from scams and fraud. In November, 55 mutual banks and credit unions demonstrated this commitment by joining forces to launch the Scam-Safe Accord. This industry-wide initiative represents a united front against scammers and reinforces the banking sector's determination to strengthen consumer protection. Find out more about the Scam-Safe Accord here.
Stay informed and protect yourself from rental scams. Share this blog with friends and family to spread awareness and potentially stop someone else being scammed. If you suspect a scam, report it immediately to help prevent financial fraud and support others in staying safe. For more resources and assistance, visit Horizon Bank and discover how they can help ensure financial safety and scam prevention. You can find more information about how Horizon safeguards your banking on our security page.
Horizon Bank has a branch network spanning the NSW South Coast and Illawarra.
Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong.
