It happens when the property offered by the firm does not exist or has already been lent, or it has multiple tenants who have already made deposits for the same house. Such scams target people like students who trust the dealers. They attempt to get a university accommodation without much investigation. 

The unsuspecting victims pay the upfront but do not get the dwelling on rent. Some lettings have created apps to examine the prospective tenants' behaviour and transactional ability, and some offer packages for homeowners and provide features to reduce entry barriers for tenants. 

Also, other services are integrated into some sites, like guaranteeing rent and covering the cost of damage. 

How To Protect Yourself?

• Do not transfer money into the account of someone who posts adverts or lettings on social media sites unless you know the agency is reliable and offers genuine, approved and refundable services.

• Do not make deposits unless you visit the property. If you are searching for flats in the UK from overseas, ask the university staff or the employer to make arrangements, or seek help from a friend or a known person to avoid losing money to scams.

• Before finalising the deal, ask for all the property documents, like the bills and HMO license.

• Do not book a house under pressure. Always follow the steps, like checking the details carefully. Always be suspicious of transferring funds to an unknown account through a money transfer service.

• If you suspect fraud, raise concerns and report them to authorities.