In today's digital age, renting a property online has become increasingly common. Unfortunately, it has also become a hotbed for scams. While searching for a rental home, it is essential to recognise the red flags that may indicate a fraudulent listing. 

As technology evolves, so do the methods used by fraudsters to exploit unsuspecting tenants. Some of the ways scammers are becoming more advanced include:

Professional-looking listings: Scammers now create highly convincing rental ads, often using stolen or doctored images and detailed property descriptions to make their listings appear legitimate.

Impersonating reputable landlords or agencies: Some scammers go to great lengths to pose as well-known landlords or property management companies, even setting up fake websites or using official-looking documentation to gain trust.

Phishing and malware: In some cases, scammers may use rental listings as a way to collect personal information or install malware on a victim’s device, further increasing the risk of identity theft or financial fraud.

Virtual viewings: With the rise of virtual property tours and digital payments, scammers can now bypass in-person meetings entirely. They can conduct fake virtual tours and request deposits or rent payments before the tenant has even seen the property.

Social engineering: Scammers are using more sophisticated psychological tactics, such as creating a sense of urgency or exclusivity to pressure potential renters into making quick decisions without verifying the legitimacy of the listing.

Fortunately, there are some early warning signs that tenants can take heed of regarding rental scams. Among the most common are these red flags.

Too good to be true

One of the most obvious red flags is when the rental price is significantly lower than comparable properties in the same area. Scammers often lure potential victims by offering shockingly low prices, far below the market rate.

For example, when coming across a listing for a studio unit priced at RM800 per month, whereas similar units in the same building were going for RM1,500 to RM1,800, suspicions should already be triggered. While there might be a seemingly plausible reason why the listing is at such a discounted value, the reality might be further from the fiction. A common claim is the owner has multiple units to lease out but due to them having to shift to another country, the owner is desperate to rent out the units quickly and was offering them at heavily discounted price in exchange for long-term tenants.

While this scenario might seem plausible at first, it is essential to stay cautious when something feels off. Always question any deal that seems unusually favorable because chances are, there is more to the story than meets the eye.

Owner refuses to meet in person

Another hallmark of rental scams is when the landlord or agent avoids meeting in person. They may claim to be out of the country, on vacation or tied up with personal commitments but they always have an excuse for not showing the property themselves.

In any legitimate transaction, the owner or real estate agent will be willing to meet a potential tenant at the property for a viewing. If they repeatedly push for virtual interactions or refuse to meet, consider it a red flag. It is past the Covid-19 pandemic so there is no reason why the owner can’t meet in person.

Another red flag is the usage of overly reassuring comments, like promising there were no hidden charges. This level of unsolicited reassurance can be a tactic to win a tenant’s trust.

Don’t transfer money online without a viewing

Never transmit money even before being given the chance to see the property in person. Scammers frequently ask for a booking fee or deposit before the tenant has had a chance to view the unit, often under the guise of securing the deal quickly due to high demand.

No legitimate landlord will ask for money upfront without allowing the potential tenant to inspect the property first. If asked to pay a deposit or any fee before seeing the unit, walk away. 

Due diligence, please

Do a bit of online digging especially when there is doubt. There is a wealth of online information. And the number of websites like Facebook or Linkedin that are available can help to match up information. If profiles do not match, it is a clear indication that it could highly likely be a scam. Mismatched profiles and information of the owner, agent or negotiator should raise internal alarms.

To further confirm suspicions, take a screenshot of the suspect’s WhatsApp profile picture and perform a reverse image search on Google. The image might belong to an entirely different person, who had nothing to do with the listing. 

Spending a few minutes to verify names, images and information can save tenants from falling victim to a scam. Use tools like Google searches and reverse image searches to check for inconsistencies. If anything seems off, it likely is.

Sophistication of scammers improving

According to a number of property agencies, online rental scams are increasing at an alarming rate. Just in the last decade alone, the number of scams involving fake rental listings escalated sharply. These scams often involve the victim transferring money into a fraudster's account, with no intention of delivering the promised goods or services. Aside from such fraudulent rental scams involving the transferring of money, Malaysia experienced a sharp hike in financial scams in 2023, as evidenced by alarming statistics. Securities Commission Malaysia (SC) reported a notable increase in scam-related complaints, with about 2,873 cases logged in just the third quarter, indicating a growing trend compared to previous years. Remember, it is better to miss out on a seemingly great deal than to lose money to a scam.

Report suspicious listings

If a rental listing appears suspicious or fraudulent, it is important to take action to prevent others from falling victim. Most online rental platforms provide options for reporting questionable ads, so any listings that raise concerns should be flagged. Additionally, contacting the platform’s customer service team to inform them of the potential scam can further assist in addressing the issue. 

By reporting fraudulent listings, individuals not only protect themselves but also help safeguard others from becoming victims. In today’s digital age, staying vigilant and proactive is essential. 

Rental scams are an unfortunate reality in today’s online marketplace but by staying alert and doing due diligence, tenants can protect themselves from falling prey. Be wary of deals that seem too good to be true, avoid transferring money before seeing a property and always meet the landlord or agent in person. Most importantly, trust your instincts and gut feelings—if something feels off, it probably is.

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