New rental scam alert: Fake agents turn to WhatsApp
Category BEWARE OF RENTAL FRAUD
In a concerning development, there has recently been a new surge of fraudulent activity in the residential rental sector, with scammers now using WhatsApp as their main means of communication instead of email.
"We are getting reports from all over South Africa of consumers falling victim to rental scams by people creating fake business profiles on WhatsApp," says Gerhard Kotzé, CEO of the RealNet property group, which has been waging a major campaign against rental fraud for the past year.
"As usual, the swindlers are stealing or cloning the identities of legitimate property professionals and using fake rental listings to con prospective tenants out of deposits and even rental payments. However, instead of contacting consumers via email, they are now leveraging the convenience and trust associated with WhatsApp to pressure their victims into making hasty decisions and part with both money and personal details."
Consequently, he says, RealNet is once again urging consumers to exercise extreme caution when considering a new rental, whether this is for a long-term residence or a short-term holiday stay. Warning signs of potential fraud include the following:
- Deals that look "too good to be true", that is, rental rates that are unusually low for the area or season;
- Deals that are presented as "secret" or "restricted", that is, homes that are supposedly only available through a certain person and only for a certain amount of time;
- Requests to pay a deposit or any kind of holding / administration fee before you have viewed the property, in order to "reserve" it for you;
- Requests to pay money into a private bank account, especially after normal business hours; and
- Requests for private information such as your banking details, in order to "refund" you if necessary, or your ID number and/ or an authorization to run a credit check on you.
Kotzé also notes that while most people are naturally suspicious now of online messages coming from a number or person they don't recognize, "rental scammers are unfortunately good at making their WhatsApp messages look like they are coming from someone you do know, or from a company you have done business with in the past.
"So it is vital for prospective tenants to verify the authenticity of any individual claiming to be a property professional or to represent a reputable company like RealNet in a rental transaction before agreeing to pay any money or part with any private personal information. Indeed, their first action when viewing any rental offer via WhatsApp or any other online channel should be to double-check the authenticity of that message with the real agent or company through a different communication channel."
Legitimate RealNet agents, he says, are listed in an official database on the RealNet website: https://www.realnet.co.za/agents/. Consumers can also contact RealNet's head office at 0860 460 460 for further confirmation that the agent concerned has a mandate for the rental property that is being offered.
"And for additional assurance when negotiating or leasing any new rental home, online or in person, with any property professional, clients can request to see a valid and current fidelity fund certificate from the Property Practitioners Regulatory Authority (PPRA)."
RealNet has been actively engaged in the fight against rental fraud in the residential real estate sector since last year, when it discovered that the identities of several legitimate RealNet agents had been stolen and were being used to defraud potential tenants by soliciting deposits and administration fees for non-existent properties.
These cases were all reported to the South African Police Service and the fraudulent bank accounts employed by the scammers were all flagged with the relevant banks. RealNet was also successful in having many false internet profiles and suspect property websites and portals closed down, and even hired a private forensic investigator to help trace the perpetrators and ensure their arrest and conviction.
Earlier this year, Kotzé was also able to highlight the dangers and prevalence of rental scams during an interview on the high profile Carte Blanche TV programme, which then launched its own investigation into such activities.
"And we will continue to take all possible steps to counter the actions of malicious and unscrupulous swindlers," he says. "We are also committed to sharing any information that could help to safeguard both our valued customers and the reputation of our outstanding property professionals."
Author: RealNet
