Attempted fraud on property portals has been on the rise recently. Scammers try to trap trusting house-hunters with appealing ads for dream homes. These tips will help stop criminals in their tracks.
Sounds like a dream home, doesn’t it? A tranquil location in the heart of Zurich's Old Town. Close to the river Limmat and outstanding shopping facilities. This recently renovated ‘Old Town gem’ could be yours to rent for CHF 1,100 per month. Eighty-five square metres with no restrictions and an ‘unlimited tenancy’. That's what the ad says, anyway.
The landlady replies immediately: She is currently abroad, but an uncle will handle the viewing and all the formalities. This landlady has just one condition: she will send a link with her payment details. The prospective tenant must pay the CHF 3,600 deposit in advance.
Yet this advert – and the lovely apartment itself – exist only in the criminals’ imagination. This is a down payment scam: fraudsters hope to part trusting consumers from their cash with fake ads.
Cruellest of all: in many cities where opportunities like this are rare, house-hunters are taken in by these scammers time and time again. Unfortunately, the more desperate your search for a new home, the more likely you are to take a risk with advance payments. The police and authorities now know that this kind of deposit and down payment fraud occurs with all kinds of adverts: not just rental properties and homes to buy, but often holiday rentals, short-term apartments and rooms in flatshares, too.
Some fraudsters offer the option of not transferring the required deposit to them, but doing so via a well-known, widely trusted website such as Airbnb or Tripadvisor, which acts as a ‘trustee’. Paying via this independent platform promises greater security, as it will send the money back if the apartment does not meet your expectations.
But this is a scam: the link provided takes you to a fake website, which looks deceptively like the real one. You can only tell that it is different from the URL. If you’re not paying attention, you may think that it’s safe and transfer the money – never to see it again.
The second trick involves convincing unsuspecting consumers to give away their personal details and passwords. The scammers lure them in with great prospective properties. They contact their victims via text or email. These take people to what is known as a ‘phishing’ site, which are usually designed to look like the websites of credible property platforms and agents.
Criminals try to use their ill-gotten passwords and email addresses to log into online banking or other web services. After all, sometimes a name, an email address and a password are all it takes to get in.
At Flatfox, all listings undergo continuous review. With years of experience, trained staff, and various statistical methods, we manage this time-intensive process. Constant adjustments to these models and processes are essential. The key factor is that, in most cases, we successfully identify fraudsters before a listing is even published.
What further sets Flatfox apart from other platforms is that communication between landlords and potential tenants takes place within the Flatfox Messenger. This means that even if a fraudulent listing does get published, we know which users were involved. As a result, we can immediately warn all affected parties and prevent further harm.
Nevertheless, it is always important to stay vigilant and use common sense. Real estate platforms themselves do not have the authority to take legal or police action against fraudsters. If you suspect fraud or have fallen victim to a scam, you should contact the relevant police authorities.
Never transfer money before visiting the apartment.
Report suspicious listings to the platform.
On Flatfox, it is recommended to communicate via the Flatfox Messenger until the apartment viewing and only exchange email addresses/phone numbers afterward.
Always transfer the rental deposit to a rental deposit account – never to the landlord’s personal account.