Rental scams are nothing new, but Swiss consumer groups and real estate agencies are warning about the increasing number and scope of these swindles.
The Swiss Consumer Forum has recently raised the alarm about a new type of scam targeting people looking for rental housing: these criminals no longer operate in the shadows but out in the open, infiltrating legitimate real estate platforms to perpetrate their fraud.
This year, the Federal Office for Cybercrime (FOCC) has received 228 reports of fraud related to real estate listings.
This number is increasing with the emergence of new technologies, according to SMG Swiss Marketplace, the group that operates leading Swiss real estate brands such as ImmoScout, Homegate, and Flatfox.
“Generally speaking, on the internet, and across all types of digital platforms, we’re seeing an increase in attempted fraud, although these often appear in waves,” said company spokesperson Fabian Korn.
“New technologies, such as the use of artificial intelligence, offer increased possibilities for developing new scams,” he added.
How does a typical rental scam work?
According to Tribune de Genève, “once a potential tenant finds a property they like online and contact the landlord or rental agency, they are asked to book the property through the TripAdvisor website.”
At the same time, the owner informs the interested person that they are abroad and don’t want to travel unnecessarily back to Switzerland if the person is not serious about renting the apartment. Therefore, a deposit is requested.
This reliance on third-party companies like TripAdvisor or Airbnb is “particularly insidious,” according to the page dedicated to fraudulent listings on ImmoScout24.
To create a sense of security, “scammers offer to transfer your security deposit to an account with a reputable company, such as Airbnb or TripAdvisor, rather than paying them directly,” the online platform explains. “This seems safer because the company is supposed to act as an independent trust, which will return the money if you ultimately decide not to use the accommodation.”
However, the fraudsters then send a link to a fake website that looks exactly like the real one belonging to a reliable agency.
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How can you avoid falling into this trap?
Given the housing shortage in many Swiss cities, you may very well be tempted by one of those ads.
There are, however, ways to avoid this worst-case scenario:
Be wary if an offer seems too good to be true
Always verify that the property address actually exists. Stay informed about real estate prices in the area you’re interested in. If comparable properties typically cost twice as much as the advertisement, that’s a red flag. A low price is often used to lure victims of fraudulent listings.
Always visit the apartment in person
Do not sign a lease or pay a security deposit before laying your eyes on the physical flat. “Even if you meet someone in person who claims to be the landlord, you should always visit the property before signing a lease or transferring any money,” according to the Federal Office of Social Cohesion.
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Refuse any rental that requires advance payment from abroad via money transfer companies
Rather than using a money transfer service, ask for a bank account number for transactions. Again, do not make any payments before visiting the apartment you plan to rent.
Don’t divulge sensitive personal information
Never share personal information such as a copy of your ID or bank account number online. This information could be used against you. When communicating with the advertiser, ask for their business contact information (address, phone number, etc.) and verify it.
If you have any doubts about an advertisement, contact the online platform directly
They can carry out the necessary checks and remove the advertisement if it turns out to be fraudulent.
A verification is always carried out to determine if it is indeed an attempted fraud. In fact, some advertisements are flagged as potentially fraudulent but turn out to be legitimate.
“That’s why a case-by-case examination before any deactivation is always advisable,” the SMG Swiss Marketplace group said.
READ ALSO: How I almost fell for a rental scam in Switzerland and what I did about it
