Social media rental scams preying on desperate WA renters

According to the watchdog, scammers are using social media accounts to post fake “to-let ads”, which, unfortunately, desperate people are responding to. 

But given the current state of Western Australia’s rental market, it’s easy to understand where the despondency among potential renters is coming from. 

The latest data from the Real Estate Institute for Western Australia (REIWA) showed that vacancy rates across the state in July range from 1 per cent to as low as 0 per cent, a far cry from the 2.5 per cent to 3.5 per cent vacancy rate that the institute deemed to be a balanced rental market. 

WA ScamNet revealed that many of the victims respond to fake social media ads and are pressured into making hasty decisions, which often results in transferring money to secure a rental property without carrying out proper checks.

It added that transactions carried out through instant messages, email or by text could provide a blanket of anonymity to scammers, allowing them to provide false information. 

To avoid falling victim to these scams, WA ScamNet reminded people seeking out rentals to be cautious when posting an ad, as scammers may also take advantage by responding. 

Prospective tenants are also advised to schedule a face-to-face meeting with the owner or their agent and not accept any excuses for them not being able to physically attend. 

Meanwhile, the watchdog advised people who are on the hunt for a rental home outside of their area to arrange for someone they deem reliable to inspect the property on their behalf. Another way is to hire a local licensed real estate agent or property manager to act as their representative. 

Acting executive director for Consumer Protection Penny Lipscombe warned that people targeted by fake social media accounts are also vulnerable to identity theft.

“When seeking a new rental property, tenants should be careful about who they deal with on social media — if their personal information falls into the wrong hands, it can be used to steal their identity,” Ms Lipscombe said.

She explained that social media users need to be mindful of the information that they give out during these transactions, as the people behind fake profiles may be able to use the data provided 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,” she said. 

Private landlords, real estate agents and property managers are also advised by the Consumer Protection to take measures that may lower the chance of ads 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 cybersecurity measure,” Ms Lipscombe said.

But she noted that watermarking might deter scammers from using legitimate photos in a fake ad and encouraged all property owners and managers to adopt the practice. 

She also offered another solution to prevent scammers from picture snatching. “Better still, explore the option of blocking the photos from being downloaded from websites you use to market your properties which would also serve as a fraud deterrent,” she said.

Scam reports can be lodged on the WA ScamNet website.

Tags:

• Latest

Share