Fraudsters are increasingly exploiting the tight housing market, using fake property advertisements and false promises to steal deposits and advance payments from prospective tenants.
How the scam works
Dr Christian Osthus, Managing Director and General Counsel of the IVD, explains: “The perpetrators often pose as representatives of reputable property companies and use their names to inspire trust. They place seemingly attractive property advertisements on well-known property portals, which are deleted again after a short time. Prospective tenants are then asked to transfer deposits or rent before viewing a property, often on the grounds that demand for the property is very high. These payments go directly to the fraudsters.”
Our appeal to people looking for a home:
- Make no payments before signing a contract: never agree to demands to transfer deposits or rent before signing a tenancy agreement.
- Be cautious when there is a connection abroad: be sceptical if contact is made from abroad or unusual payment methods are requested.
- Check legitimacy: do not be misled by apparently familiar company names. Research thoroughly and question offers that seem too good to be true. Contact the company using the telephone number listed on its website.
Property portals have a responsibility
The IVD is calling on property portals to take stronger measures to identify fraudulent advertisements and actively inform their users. “Providers need to be checked more thoroughly and reports of suspicious activity acted on quickly to prevent potential losses,” Osthus urges.
Another scam involving Airbnb flats
Criminals repeatedly rent flats, for example through Airbnb, and then advertise them as properties to let. Unsuspecting prospective tenants attend a viewing, sign an invalid tenancy agreement and pay the deposit to fraudsters who can generally no longer be traced.
If the criminals pose as estate agents, prospective tenants should first investigate the agency. Does it have references? Can anyone be reached by telephone or even at its premises? The same principle applies here: if an offer is too good to be true, it is probably a scam rather than an offer.