Accommodation scams are on the rise, with Netsafe recording as many in the first six months of the year as were recorded in the whole of 2022.
Netsafe chief executive Brent Carey said this scam came in many forms, from bad actors masquerading as real property management companies and taking rent or bond payments, to scammers taking deposits for fake properties, to fake Facebook Marketplace ads.
He had also seen examples of people paying for fake listings on Airbnb, and scammers impersonating websites like Booking.com to sell hotel room bookings that were not real or were not available.
“Airbnb is a popular one for fake listings, and people not checking the GPS location, and it could be a car park,” he said.
In other instances, Carey said he had seen entire websites scraped, which allowed scammers to create lookalike websites with fake URLs.
Netsafe received 28,000 incident reports last year, with victims in those scams losing roughly $35 million.
Accommodation scams resulted in $2.5m in losses to victims.
Carey said this nature of crime was under-reported, so the true figure was likely much higher.
He said as brands become more recognisable, it was easy for them to become a target for scammers.
He said more attention was needed from brands and branded property agents and their communications staff to get on top of lookalike sites.
The cost of living and housing crisis might be making some people more susceptible to accommodation scams, Carey said, because they were more easily enticed by accommodation that was advertised below market rent.
The Real Estate Institute (REINZ) also spoke up about the increase, after becoming aware of several online scams stemming from rental listings.
It said in May an Auckland property management company had a listing copied from a listing portal, which was then posted on a Facebook page.
Chief executive Jen Baird said a victim fell for the scam and gave the scammer, who was posing as the landlord, their personal information and bond payment.
The scammers had registered the victim to view the property, using the contact information the victim provided, through the property management company’s website.
The scammer then pretended to be the owner offering a deal separate from the property manager, provided the customer paid their deposit immediately.
“Whilst the bank was fortunately able to reverse the victim’s payment before it was too late, it could have easily resulted in the victim losing a significant amount of money,” Baird said.
REINZ was unable to release the name of the property management company or victim.
REINZ did provide a statement from the company, which said the scammers were preying on vulnerable and desperate people who needed to find somewhere to live and could not afford to lose up to five weeks rent and bond.
“It’s a colossal amount of money to lose for most people.”
In another instance, REINZ was notified that scammer had used a property management company’s name and logo to email property-seekers through a property listing portal about available rental listings.
The fake listings were in a city in which the company had no properties.
“We are hearing from our members that these types of scams are becoming increasingly common and it’s crucial that renters are aware of the signs to look out for so they don’t fall a victim,” Baird said.
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Jen Baird says it is important to make renters aware of the seemingly growing risk from scammers.
“It’s just as important that property management companies are educated on the types of online scams that are occurring, so they can inform staff on best practices when dealing with clients.”
The property management company impersonated said it had instructed staff to inform every prospective client that the property was only listed with its company, and if anybody was trying to engage in other ways, it was likely a scam.
Tips for renters included verifying the identity of the property manager or owner and being cautious with anyone who approached via social media.
Communicating or closing deals through social media platforms or personal email addresses could be a red flag.
Renters were also warned to be wary of unusually low rents, and advised not to pay money upfront, including on security deposits, rent, or other fees.
It was also worth ensuring legal documents were provided, agreements were in writing, and renters should insist on an in-person meeting to sign a lease.
