Rental Scam Surge: Fraudsters Target Desperate Tenants on Facebook and Gumtree
As the housing market becomes increasingly competitive, desperate tenants are falling victim to rental scams on popular platforms like Facebook and Gumtree. Experts in the housing industry are warning that fraudsters are posting fake ads for rental properties that are nearly indistinguishable from genuine ones.
These criminals modify the details of the listings and pose as landlords when contacted. However, once they receive a deposit, they vanish without a trace. Action Fraud, a national reporting center for fraud and cybercrime in the UK, recorded a staggering 5,751 reports of rental scams in 2022, which marks a 23 percent increase compared to the previous year. The total losses from these scams amounted to approximately £9.4 million, averaging around £1,600 per victim. Moreover, there were approximately 541 cases reported last month alone.
Jonathan Rolande from the National Association of Property Buyers has issued a new warning, emphasizing the shortage of good and affordable rental properties. According to him, this scarcity creates a sense of desperation that attracts fraudsters. With up to 20 applicants vying for each rental home, tenants find themselves in a vulnerable position during the housing crisis. Those who don’t fit the criteria set by landlords and letting agents, such as receiving benefits, having pets, a poor credit history, or children, become even more susceptible.
Scammers employ various tricks to deceive unsuspecting individuals. One popular tactic is sharing fake links and demanding deposits for property viewings. Rolande advises against using links sent through text messages or WhatsApp, even if they appear to be from legitimate sources. Additionally, he warns against paying any amount to view a property. Another common scam involves individuals attempting to let out properties they don’t actually own. It is crucial for tenants to verify the legitimacy of the person offering the property, especially when not using a reputable letting agent. Furthermore, scammers often try to let the same property to multiple tenants, so applicants should be cautious of promises made by multiple individuals for the same property.
To protect yourself from rental property scams online, here are some tips:
1. Check for genuine landlords: Verify the legitimacy of landlords by using the Land Registry or Companies House to confirm their details.
2. Beware of unrealistic prices: Scammers often attract victims with unrealistically low rental prices. Exercise caution and investigate further if a deal seems too good to be true, particularly in today’s market.
3. Don’t succumb to pressure tactics: Scammers frequently use high-pressure tactics to rush victims into making hasty decisions. Take your time to verify the property and the landlord’s legitimacy before committing to anything.
4. Use reverse image search: Conduct a reverse image search on the property’s photos to check if they have been stolen from legitimate listings. This simple tool can help identify potential scams.
5. Keep conversations on the platform: It is advisable to communicate with landlords and agents solely through the platform on which the listing is posted. Moving to personal messaging platforms like iMessage or WhatsApp could expose personal information and make you more vulnerable to exploitation.
6. Avoid clicking suspicious links: Clicking on links posted by scammers can lead to phishing attempts or the installation of malware on your device. Always verify the legitimacy of a link before clicking.
Jonathan Rolande emphasizes that while these guidelines can be effective in preventing rental scams, they are not foolproof. It is essential to exercise caution, conduct thorough research, and, if possible, utilize legitimate letting agents when searching for a rental property.
The rise in rental scams can be attributed to the shortage of rental properties, which has led tenants to act quickly to avoid bidding wars. In June, the average monthly rent in the UK reached a record high of £1,273, a significant increase from £951 in June 2021. During the period of January to June, more than 66,000 rental properties were listed on Gumtree, garnering over a million responses.
As the property market remains fiercely competitive, tenants must remain vigilant and take proactive measures to protect themselves from rental scams. By following the guidelines and staying informed, individuals can minimize the risk of falling victim to fraudulent schemes and secure a safe and legitimate rental property.
