The Australian Competition and Consumer Commission (ACCC) has raised a warning of a huge spike in rental and accommodation scams during COVID-19 restrictions, resulting in people losing more than $300,000 out of their pocket.
Highlights:
- The loss of personal information through rental scams has become more common during COVID-19 pandemic
- More than 500 people have reported the rental scams this year
- More than $300,000 lost in rental and accommodation scams in 2020
As per a report issued by ACCC, rental scams have seen a huge spike during the coronavirus pandemic as scammers are targeting people seeking new rental accommodation by offering reduced rents.
The scammers have been offering fake rental properties with cheap rent to convince people into handing over money or personal information.
According to the report, the scammers have been posting advertisements on various real estate and classified websites, targeting people looking for accommodation through social media platforms.
the scammers request upfront deposit to secure the property or phish for personal information through a ‘tenant application form’ Source: Getty Images
Once a person falls a victim to their plot, the scammers then use a fake “tenant application form” to organise a false virtual inspection, steal the personal information and then demand an upfront deposit or bond in return for the keys.
If your personal information is stolen, you are at risk of being targeted by further scams: ACCC
ACCC Deputy Commissioner Delia Rickard said, “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,”
“Once a scammer has your personal information you are at risk of being targeted by further scams or identity theft.”
“Many people are also experiencing financial difficulties due to the pandemic and the financial impact of falling victim to a scam can be devastating,” Ms Rickard said.
How to identify the scam?
In response to a query from SBS Punjabi, a spokesperson from ACCC said, “Don’t trust the legitimacy of an ad just because it appears in a reputable classified’s website – scammers post fake ads there too.”
“Verify the landlord or that the real estate exists before sending any paperwork. Scammers can use rental paperwork to steal your personal information, such as identity documents or bank details.”
“If the price seems too good to be true, it probably is. If a listing is significantly cheaper than others in the same area, this may be a sign that it is a scam,” she added.
How to stay safe?
On a query by SBS Punjabi about “how not to fall a prey of such scams?” the spokesperson said:
- View the property before paying any money (including bond or rent) to landlords or real estate agents. Legitimate realtors and landlords are unlikely to charge viewing fees to prospective tenants.
- Students should be wary that scammers target people who have posted ads on classifieds or social media stating that they’re seeking a room.
- Students can talk to their university to help them find legitimate accommodation.
- Do not pay a bond or rent via unusual payment methods such as wire transfers — this is a common trick used by scammers which makes it hard to recover monies lost.
- Read independent online reviews of the real estate agent and check that the agent is licensed in your State.
Anyone who suspects they are a victim of a rental scam should act quickly to reduce the risk of financial loss or other damages.
They should contact their bank as soon as possible and, if relevant, contact the platform on which they were scammed to inform them of the circumstances.
IDCARE is a free government-funded service which works with victims of identity theft to develop a specific response plan and support them throughout the process. You can phone them on 1300 IDCARE (1300 432 273) or visit their website
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