Scammers are exploiting conditions created by coronavirus to target tenants.
Victorians have lost almost $110,000 to rental cons this year, as scammers exploit conditions created by the pandemic.
The state’s tenants have reported 99 scams to the Australian Competition and Consumer Commission to emerge the hardest hit financially this year, followed by New South Wales renters with $96,423 in losses from 185 cases.
Nationwide, scammers have prised more than $300,000 from tenants — up 76 per cent on a year ago — by offering fake rental properties to dupe them into handing over money or personal information.
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Victoria’s coronavirus-driven ban on physical home inspections could be leaving its tenants more vulnerable, with ACCC deputy commissioner Delia Rickard revealing con artists were using “government restrictions to trick people into transferring money without inspecting” properties.
In-person inspections are outlawed in the state until at least October 26, assuming Melbourne records fewer than five COVID-19 cases per day for the two weeks prior.
Ms Rickard said scammers were also offering reduced rents due to COVID-19 and luring victims by posting ads on real estate or classified websites. They were also targeting people who posted on social meeting about seeking a room.
Australian Competition and Consumer Commission deputy commissioner Delia Rickard said falling victim to a scam could be “devastating” for anyone already struggling financially due to COVID-19.
The ACCC said after a victim responded, scammers were asking them to lodge an upfront deposit to secure a rental, or phishing via a “tenant application form” for personal information and documents including passports, bank statements or pay slips.
They promised to supply the keys after they collected the payment or information, and may even make up excuses for further money transfers, impersonate real estate agents and organise fake inspections.
Victims had arrived at addresses to discover a property didn’t exist or was already occupied, the ACCC said.
People aged 25 to 34 have reported the most scams, with those in the Australian Capital Territory ($74,191) and Queensland ($51,975) also suffering substantial losses.
Victorians have lost $109,639 to rental scams this year.
Ms Rickard recommended renters “view a property in person before paying any bond or rent money” to avoid being conned.
But she added Melbourne tenants who were unable to walk through properties could help protect themselves by searching online to confirm a property existed and, if dealing with a property manager, confirming they were licensed.
“Scammers often rely on email communications to avoid identification,” she said.
“Do an independent search for a phone number and speak to the property manager over the phone or arrange a meeting in person.
“Many people are also experiencing financial difficulties due to the pandemic and the financial impact of falling victim to a scam can be devastating.”
Anyone who suspects they have been conned should act quickly by contacting their bank and, if relevant, the platform on which they were scammed to inform them. They can also make a report via the ACCC’s Scamwatch website.
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