Common rental frauds and ways to deal with them

Internet has made our lives quite easy. Doing everything with just a simple click is fast becoming a norm everywhere in the world, and India is no different. However, this ease of doing things is not without a flip side. Our increasing dependence on internet has led to rise in online frauds. We would discuss the common rental frauds in India both online, as well as offline and suggest ways to deal with them.

See also: Online frauds and QR Code scams

Criminals pretending as tenants, landlords

On November 29, 2023, media reported a Mangalore-based businessman filed an FIR with the police, alleging a rental fraud of Rs 1.14 crore. According to the FIR, the culprit forged papers show ownership of property he did not own.

In August 2021, a Pune-based woman was cheated of Rs 4.75 lakh by fraudsters, who posed as army personnel interested in renting her property. According to the FIR filed by the woman in Cybercrime Cell, the criminals asked about her online payment details but on the pretext of a technical issue later sought her bank account details. Over the next few hours, they siphoned off Rs 4.75 lakh from her account.

According to an FIR registered with the Ernakulam Rural Police in November 2022, a fraudster swindled money by introducing himself as a CISF officer. “He asked for his bank account details to pay the advance amount. Later, a link was sent to the victim and money was debited from the bank account,” the police said.

Remember, not all property brokerage firms verify each listing to make sure it is genuine, and fraudsters are not using their platforms to defraud easy targets. Using a popular platform, these con artists then trap users through persuasion and try to extract confidential information or push online payment. While at it, they would ask you to:

• Share your personal information.
• Be in a tearing hurry to close the deal.
• Ask you to scan QR codes to receive payment.
• Ask you to click on a link.
• Share your UPI details.
• Nudge you to share your account details.
• Excessive promptness in sharing their details.
• Making unrealistic promises.
• Showcasing once-in-a-lifetime deals.

Rely only on those property brokerage sites that guarantee complete verification of each listing and promise complete rental assistance on their platforms.

Pro-tip: When it comes to renting, go only with trusted platforms like Housing.com that guarantees genuine listings.

 

Request to scan QR codes and receive money into your accounts

In fact, the QR code scam is one of the most common rental frauds in India as people are becoming more dependent on virtual mediums to find quick and easy rental solutions. In this kind of scam, the fraudster will ask you to scan a QR code and share an OTP, using that they say, they would transfer money into your account. With a single click, they will not only clear your account but also get access to your credentials like customer ID, PAN and Aadhaar number, etc.

Apart from making tenants their target, these scamsters also target landlords. Fraud companies, pretending to help landlords and investors, say they are sending them the payment through QR code to ascertain their bank details.

In November 2022, the Visakhapatnam Police, while issuing a warning against such fraudsters elaborated their modus operandi. According to police, fraudsters contacted people who have put their properties for sale or rent on websites, introducing themselves as armed forces personnel recently transferred to Visakhapatnam. “They also send fake Aadhaar cards to convince victims about their identity. Soon, they start weaving an elaborate ruse, informing the victims of a ‘scheme available only for armed forces personnel’ in which the landlords would get back twice the amount of money that they deposit into the accounts of the personnel at the time of signing the rental agreement,” they said.

“In some cases, fraudsters send QR codes and ask people to scan the codes to receive money. Many people are unaware that when you scan a QR code, you are sending money to the bank account linked with the code, and not the other way round. As soon as a gullible person scans the code and inputs his PIN, money gets deducted and credited to the fraudster’s account. In some cases, fraudsters also manage to obtain ATM card details by sweet-talking,” police said.

In Hyderabad and Bangalore, such cybercrimes have come to light where fraudsters specifically target software and banking professionals who want to rent their properties.

Pro-tip: Remember, a QR code is only scanned to send money and not to receive money. A landlord should not fall for non-existent reverse-payment methods used by cyber criminals.

 

Credit card frauds using rent payment apps

Nearly all companies providing rental services, offer customers rent transfer through credit cards. To cheat unsuspicious users, fraudsters register with the app as landlords with their account numbers. Using these credentials, they trick tenants to provide their credit card details. Using these, they sweep funds from the tenant’s account. The scale of such frauds has increased to such an extent that police and authorities, in several states, have issued advisories about credit card frauds on rent payment apps.

Pro-tip: Verify the credentials of apps and landlords before making any online payment. If there is any suspicious activity, contact the customer support of the app. Also, do not install remote access software such as AnyDesk, Quick Support, etc., in your mobile if someone asks you to install it.

 

Other tips to avoid online rental frauds

• Don’t ever scan any QR code or enter UPI PIN for ‘receiving’ money. Remember the thumb rule, QR code scanning or UPI PIN entry always leads to debiting of money from an account.
• If a tenant or a buyer insists on scanning a QR Code or entering UPI PIN to receive money, they are scammer.
• While transacting through UPI, notice the app screen for words like ‘Pay Rs. XXXX’, ‘Requested by’, ‘Proceed to Pay’, etc. They all indicate that money is about to be debited from your account.
• Never approve ‘Fund Transfer’ or ‘Payment Request’ from unknown UPI IDs. Always check UPI address before doing any transaction.
• Immediately call the Cybercrime helpline number 1930 and provide your details along with details of the fraudulent transaction.
• Real estate is a serious business. A tenant would invariably haggle with you for lowering the rent, if possible. Anyone offering you an extra payment is a clear red flag.
• Cases of con artists impersonating armed and paramilitary officers have increased significantly across the country. Be vigilant if you encounter such a tenant.
• WhatsApp is becoming one of the popular modes for scammers to trick people and steal money. Don’t engage in chats with strangers on this platform.

 

FAQs

What are the charges for paying rent through credit cards?

Your credit card issuer may charge a minimal processing fee of 1 to 2% per transaction on rent payment with credit cards.

Where to report a cyber fraud?

Call the Cybercrime helpline number 1930 to report such frauds.