Gardaí issue rental fraud warning as people scammed for as much as €3,700

Visiting an estate agent used to be the main way to source an apartment to rent but many offers are now made on social media and some of these will be fraudulent: Twelve people lost a total of €20,000-plus through accommodation scams in Ireland last month alone. iStock

Gardaí are advising students to be wary of rental scams, as they revealed that 12 victims suffered a combined loss of over €20,000 through accommodation fraud last month alone.

The victims lost an average of €1,729 each, with one person out of pocket to the tune of €3,685. At least eight of the 12 victims who reported the fraud last month were deceived through social media/online adverts or contacts.

Gardaí issued the latest warning to students and prospective renters today, noting that approximately one third of all accommodation fraud reports occur during August -September each year.

While there has been decrease (-11%) on reports of accommodation fraud to the end of June 2024, the period when students return to college (from August to October) is linked to an annual spike in rental scams, according to gardaí.

In addition, gardaí note:

• 34% of victims of accommodation fraud are under the age of 25;
• 66% of victims are aged under 33; 
• 54% of victims of accommodation fraud in Ireland are male, while 46% are female; 
• 30% of victims who reported accommodation fraud to gardaí were Irish.

Of the 12 victims who reported fraud to gardaí in July, 10 were Irish-based and lost €15,231 or an average of €1,523 each. Two were foreign-based victims who were moving to Ireland and lost €5,515 between them.

Rental fraud is described as when a victim pays money for rented accommodation, usually in the form of a deposit, and later discovers that the transaction was fraudulent.

Rental fraud can take many forms, including:

• The fraudster claims to be out of the country and cannot show the renter the property unless they pay a deposit. The victim pays the deposit and loses the deposit.

• The fraudster is living in the property and shows a number of people the property, gets a deposit from several people and then disappears with the money.

• The transaction appears normal until the renter finds that the property doesn’t exist, is already occupied or the keys do not work and the landlord has disappeared.

The Garda National Economic Crime Bureau (GNECB) advises renters to look out for a number of warning signs when selecting rental accommodation. The gardaí warn: 

If the rent seems too good to be true it probably is. There is no such thing as cheap accommodation especially in urban areas. 

Renters are advised to refrain from choosing properties where the landlord is unable to meet them and show the property in person, as it may signify the property does not exist.

Payments required through cash, cryptocurrency, or money via a non-bank transfer and sending money to a bank account in a different country are also immediate warning signs, gardaí added. Other red flags include:

• There is a sense of urgency like "a one-time offer”; 

• The listing contains grammar or spelling mistakes 

• There are very limited details or pictures of the property; 

• Communication is only through text / WhatsApp or other social media platforms.

Anti-fraud checklist  

Those looking for accommodation are advised to carry out their own research on the property and only use recognised letting agencies before handing over payment for rent.

Checking that the keys work and meeting the landlord for a tour of the property are also essential to ensure the accommodation is legit.

Other tips mentioned by gardaí include asking for the exact address and verifying the existence of the property and researching the area to find out average asking prices in comparison to the amount advertised.

Gardaí advise renters to make payments in a way that is traceable and/or refundable and insist on a proper receipt and tenancy agreement when making the decision.

If you suspect you have been a victim of accommodation fraud, always report it to gardaí and your bank and ask your bank to do a recall as soon as possible.