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Written by rosalind renshaw

Online rental scams are on the increase, the National Fraud Intelligence Bureau has warned.

It is dealing with 95 complaints – half from London, but with cities in the north-east also targeted. Many victims are students or new graduates starting their first jobs.

The scam works when a rental advert is placed online, apparently by a letting agent or landlord. The property is ‘virtually’ or sometimes physically viewed and the ‘tenant’ signs a rental contract and agrees to pay a deposit plus a month’s rent in advance.

Funds are paid by Western Union or Money Gram. In reality the property does not exist, has already been rented, or has been rented to multiple victims at the same time.

Fraud police point out that there is very little regulation as to who can advertise online.

They are warning tenants not to try and rent properties they have not physically seen, to check landlords’ and agents’ credentials, and to only transfer money straight into the landlord’s or agent’s own bank account – a traceable transaction.

Police, who are keen to push the rental scam message as widely as possible, believe many of the conmen are from abroad.

Comments

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    Michelle, well er, thanks for re-writing the article in your own words I suppose. ???

    • 12 October 2010 13:28 PM
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    Rental scams fall into three main categories:

    The scammer poses as an individual renting out his/her own property. Usually it will be listed as available because the owner claims to be living or working elsewhere for various reasons, such as charity work, missionary work, etc. -- Anything that makes the scammer appear respectable.

    The alleged landlord will ask for the first month's rent to be sent by Western Union or Moneygram, before sending the keys by a courier service. Another variant is to ask the prospective tenant to prove he can afford the rent by using Western Union to send money to a trusted friend or relative, then send the scammer a scanned copy of the receipt, with the false claim that only the named recipient can retrieve the money.

    The scammer may pose as a property management business with many properties for rent. This is a more elaborate scam, often involving fake websites and even bank accounts.

    Both types of scams use photos of real properties stolen from websites of genuine estate agents/realtors. Obviously the property will not be available for viewing, but the scammer will use various excuses to disguise that fact. Never send any money without actually seeing what you have been promised. Any genuine landlord or agent will be able to arrange for you to enter the property.

    If you are a landlord, a scammer may pose as a prospective tenant wanting to rent property from you. He will offer to send you a check (often from a "relative" or business), and ask you to cash the check and send part of the money to another person by Western Union, using an excuse such as an accidental overpayment, funds to pay a moving company, etc.. There will be a sense of urgency because they want you to send the money before the check is discovered to be fake. (See the fake check informational topic for detailed information on how check scams work.)

    Important: Western Union and MoneyGram transactions are intended only for transactions between yourself and people you know and trust. The transaction details should never be disclosed to a third party.

    Despite what a scammer might tell you, Western Union and MoneyGram Transfers can be picked up virtually anywhere in the world and with a minimum of identification, or even none at all. They are almost impossible to trace once the money has been collected.

    Source- Scamwarners.com

    • 12 October 2010 11:02 AM
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    You have to be lacking in brain cells to get caught out by these fraudsters surely. Who on earth doesn't have doubts when signing via the internet or only being shown photos. Alarm bells should be ringing LOUD!

    • 11 October 2010 11:51 AM
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    OR:

    As I have seen, a woman puts an ad on gumtree as a landlady. She has checked rightmove for empty properties etc. Broke in the property, changed the locks (now only she has access) This will be mostly done over a weekend or 100% a bank holiday weekend. She shows the property on appts to as many people, signs gets money there and then, signs a paper etc and then after a day of collecting money runs away. One duped person said they believed her as she was a woman and looked pregnant! Thats where I tell them ALWAYS go through an agent!!!!

    • 11 October 2010 10:18 AM
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