Flat rental fraud
You’ve decided to move to a European capital, and while looking for an accommodation online, you come across a magnificent flat at an unbeatable price.
Description of the fraud
After having found the apartment of your dreams at an excellent price, you contact the person who posted the listing. They respond immediately with a photocopy of their ID, explaining how they are the child of the owner who lives in another city in Europe, and that they prefer to communicate via email rather than through the website.
Straightaway they tell you that there are many people interested in the listing and that, as such, the first who puts down a payment for the first 3 months will get the apartment. You wire transfer the money to the owner’s bank account (opened in yet another country), and you receive no more information. You contact the listing website, which informs you that they cannot be held liable, especially as the transaction took place over email.
Methods used by fraudsters
- Proof of ownership (such as photos of the apartment, a photocopy of the seller’s ID, etc.) is designed to win over your confidence.
- The seller emphasises the popularity of this listing, making it seem as if you will lose your chance if you wait too long.
- Multiple countries are often implicated to cover the fraudster’s tracks. For example: the seller is based in Germany, holds French nationality, and has a Spanish bank account.
Contact with the potential buyer
- The posted listing suggests putting individuals in contact either directly or via social media.
- It’s up to the buyer to contact the seller of the listing.
Advice to avoid fraud
- Don’t listen to a seller who emphasises the popularity of the listing. Take time to fully evaluate the information about the listing. If a seller pressures you, it can often be due to an ulterior motive.
- Ask for a detailed description of the apartment, and avoid sellers who respond in vague terms or evade your questions.
- Verify the address of the photos of the apartment. After looking up the apartment online, you may find that its address actually corresponds to the address of another apartment from an entirely different listing or that the photo is used in another ad.
- Be wary of listings that seem too good to be true. Ask yourself if the listing makes sense, and compare prices on other websites.
- Don’t immediately trust a photocopy of an ID – it could easily be the ID of the last victim or an edited card from someone else.
- Be cautious if there are multiple interlocutors and/or countries involved. This allows fraudsters tocover their tracks.
- Opt to pay via credit card rather than wire transfer, because wire transfer is in principle irreversible. If the seller asks to use an unsecure but trusted “third party”, be cautious and choose a well-known service that can provide guarantees.
- NEVER send a photocopy of the front and back of your ID, or your card information.
What to do if you have already paid
- A wire transfer is, in principle, irreversible, but you should still contact your bank to find out if there are any possible solutions or options of recourse to recall the money.
- If you’ve paid via an alternative payment method, immediately contact the service provider to dispute the payment.
- Once the payment has gone through, check if you can receive a refund.
- File a complaint with the police. If you do not know the name of the fraudulent interlocutor, you can file your complaint against X.
- Marketplaces and websites which show advertisements and connect venders and consumers are neither real estate agencies, nor intermediaries who can intervene in a rental contract. They cannot, in principle, be held responsible in case of complaints brought up between the tenant and the owner, unless they were aware of previous complaints and let the listing remain. Consult the website’s general sale conditions to see if they propose any solutions in case of a problem.
The responsibilities of online platforms
If an online platform is aware of a fake ad, it must inform the users who have contacted this ad, as well as provide the identity of the landlord or service provider and their contact information.
This obligation is stated in the European Digital Services Act (DSA), which applies to European online platforms and search engines with a majority European consumer base.
Also, if you find an advertisement that you believe is fake on an online platform, the Digital Service Act guarantees that you may easily submit a warning to the online platform. This form allows you to explain why you believe the ad is illegal.
Any platform which becomes aware of a fraudulent rental offer and does not contact the consumers concerned can potentially be fined by the competent authorities up to 6% of its annual profit, if they are covered by the DSA.
Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Innovation Council and Small and Medium-sized Enterprises Executive Agency (EISMEA). Neither the European Union nor the granting authority can be held responsible for them.