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During the lockdowns, many tenants complained of the trend of rental rip off where they were asked to pay a deposit to see the property, and when they went there, they realised they had paid for bogus lettings.
In such cases, the prospective tenant is asked to pay an upfront fee to rent a non-existent house or a house that has already been rented or has been rented to multiple clients at the same time, and the renter loses the hundreds of pounds they transferred into the letting agents' account as fees.
The government is preparing to introduce a scheme to get deposit-free renting. Instead, the tenant will be asked to put down equivalent rent of several weeks in insurance cover where the landlords will be covered for a full deposit, and the tenant gets full cash flow.
There are other schemes where the tenant is asked to hand over the equivalent deposit as a warranty, which is non-refundable. Also, there are plans where the tenant is liable for the damage to the property in case of any disagreement over the rental contract.
Those who lost money have various ways they can claim their funds back, but the recovery mainly depends on the mode of transfer of payments. All the clients scammed in rental schemes were aged 20 to 29, and they were not tech-phobic, unlike the elderly victims.
The gangs spoofed popular lettings portals, and even the regulatory authorities could not close down such sites or take action against them.
So the criminals copied reputable websites and the links posted by them to look legit. In one such case, Zoopla offers an initial free period for new agents who got calls from tenants about listing where the rates were way below the market rate, so they got suspicious.
Private landlords advertised many attractive rental properties on Facebook that wanted the tenants to pay hundreds of pounds as an advance deposit to get the keys. The fake landlord took the deposits and disappeared.
There are many reliable online property sites, but one should be vigilant about illegitimate offers.
If anyone gets a call about property rental transactions, do not send money to people posing as landlords who post property ads on social sites without visiting the house in person.
One should not rush into making decisions involving the transfer of a huge sum of money. Instead, ask for copies of tenancy and safety certificates.
Contact the landlord through a professional body. You should agree to make payment through bank transfer only when you trust the person.
If you suspect a fraud, report the crime to the bank immediately to stop fund transfer into the criminal's account.
The most common Scam Investments include :
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Read More About Protecting Yourself From Scams
Other common financial scams:
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Web: www.nationalcrimeagency.gov.uk
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