Gumtree renters warned of deposit money transfer scam
Renters searching for a new property on sites like Gumtree and Craig's List are being warned of a new scam.
Adverts are going on the site offering flats in some top London locations at reasonably low rents, often with bills included.
The fake landlords claim they are out of the country and need to see proof that a deposit can be paid before showing the flat.
They ask prospective tenants to transfer money to a friend and send a scanned copy of the transfer to them to provide the proof they can afford the rent.
However, this may be enough for the fraudster to collect the money before the victim's friend or relative can do so.
Advice for tenants is to ask their landlords how their deposit is protected and seek advice immediately as to whether their funds are at risk. If in doubt, just walk away from a deal.
The key is also to think twice if a deal seems too good to be true or photos seem almost from a catalogue.
Scammers are also being clever picking properties that cannot be viewed from searches such as Google's Street View.
Kevin Firth, director of the Deposit Protection Service, one of the three approved schemes that protect renters' deposits, warned tenants about the scam.
He said: "Tenants should only transfer money to reputable landlords who can prove they are registered with an approved tenancy deposit scheme so it is important that you double check.
"Ideally they should meet the landlord first and view the property before handing over any cash".
If you have already transferred money, the DPS recommends you seek legal advice.
A spokesperson for Western Union explained the service should only be used for paying money to friends and family and not for goods or services.
"Don't give the receipt or details for a money transfer to any person other than the person who is going to pick it up," she said.
She added when cash is picked up the fraudster would need the control number and names of the people sending and receiving money as well as ID papers to prove they are the receiver of the money.
"Our staff are trained to recognise ID, but they are not the police," she said.
"They key is not to send money for payments, but for friends and family. We are designed to send money to families not for paying for goods."
The suggestion is if the fraudster can provide realistic fake ID quickly, they could get the cash.
Listings site Gumtree also warned people not to wire payments to people advertising on the website.
"Gumtree.com is a local site, a bit like an online noticeboard, and we encourage all users to meet in person to view properties and to exchange the money," a spokesperson said.
"We already have a dedicated safety team which aims to respond to any reports of suspected fraudulent activity within just a few hours and we are constantly optimising our detection technology - which does help prevent many fraudulent adverts making it onto the site and identifies known fraudsters.
"As well as the rotating safety tips on the Gumtree.com homepage, we strongly advise all our users to never wire or send money using money transfer services as this leaves no transaction record."
He added: "Fraudulent activity of this nature is an industry wide problem and something we take very seriously. We always do our very best to protect our users online and the vast majority of them have a safe and successful experience."
Fake landlord emails
An email sent to one myfinances.co.uk reader states: "[To make sure] that nobody will view it and will not want to rent the flat, I will need [you] to show me evidence that he/she can pay me by cash.
"Am sorry if am too strict but I will want you to show me evidence that you can pay me by cash.
"What I will like you to do is very simple: go to any Moneygram or Western Union agent close to you and transfer the deposit to your friend's name or anybody you trust within the UK as I don't want you to send me any money before viewing.
"Then scan the receipt given to you at Moneygram or Western Union for me to see this is all the evidence I need send it along with the date you want us to meet in London for the viewing of the flat."
Sarah, who received the email, said: "I was in a hurry to find a place to live and was really pleased when I found the property on Gumtree as it seemed perfect, and very cheap.
"However, alarm bells quickly started ringing when I had an email from the 'landlord' asking for money, before I'd even seen the place."
She added: "When I quizzed him over why he needed the money I heard no more from him.
"While I had a lucky escape, I fear other people may not be so lucky, especially anyone moving here for the first time who may think this is common practice in the UK."
Following a further advert for a flat in central London, a second reader received this email: "I work in a hospital in Italy and is very hard for me to come in London. I can't take the risk to leave my new job for days and when I arrive in London to see that I come for nothing. I want to be 100% sure that when I will meet you, we do the rent papers then I can come back in Italy.
"So I can be sure of that look how we can do: You make the payment from your name and address to your best friend name and address in UK using Western Union for 2 months rent that means 1560 GBP and send me the scanned receipt.
"As soon as I see the scanned receipt that you have made the payment, I will come in London and you will see the flat and maybe rent it.
"So all you have to do is to find a Western Union office and wire 1560 GBP from your name to your friend name and send the scanned receipt. I am asking you this to be sure that I do not come in London for nothing. Hope you can understand my situations."
This reader challenged the scammer stating the offer "sounded like a scam" and heard nothing further from the fake landlord.
He said: "You have to be savvy when you find a property. I also make sure I see the property first before making any decisions of handing over any money or a cheque."
Daniel Barnes
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