Rental scams costing tenants £5.25 million a year, official fraud investigation reveals
Government-backed Action Fraud says nearly 17,000 people have been victims of rental scams over the past four years and urges tenants to check agents are NALS or ARLA accredited first.
Rental fraudsters have claimed 18,645 victims over the past four years who on average have lost £1,396 each or £22.1 million collectively, figures just out reveal. This suggests tenants are losing approxiamtely £5m a year to fraudsters.
The shocking figures come from Action Fraud, the UK’s national reporting centre for fraud and cyber crime, which is warning tenants and particularly students to watch out for signs of rental fraud, and to check that the agent involved is NALS or ARLA accredited before proceeding.
Rental scams are when prospective tenants are tricked into paying upfront deposits or initial rent for flats or houses that either don’t exist, are ‘clones’ of real homes or properties rented out by departing tenants without permission, to multiple people.
Rental scams
Action Fraud says the huge demand from students during the weeks prior to the start of the academic year presents the greatest opportunity for fraudsters as students scramble to find accommodation.
The organisation says there were 930 instances of university-related fraud over the past four years, although Action Fraud says this figure is likely to be higher than its records show because many complainants don’t identify as students.
It also says that over 400 cases involved sums of £5,000 or more and that the most active period for attempted rental scams is during July and August each year.
“The impact of rental fraud can be severe, both emotionally and financially,” says Pauline Smith of Action Fraud (left).
“By taking simple steps such as visiting the property you intend to rent or checking that the owner is on an approved accommodation list, you will be able to protect yourself from this type of fraud.”
Read how technology could help prevent rental scams.
