Virtual inspection trap triggers warning

By Grace Ormsby 22 September 2020 | 1 minute read

The consumer watchdog is warning of an increase in rental and accommodation scams, with more than $300,000 lost to fraudulent activities this year alone.

Virtual inspection trap triggers warning

According to the Australian Competition and Consumer Commission (ACCC), scammers are targeting anyone seeking new rental accommodation by offering fake rental properties and using tactics related to the COVID-19 pandemic.

“Scammers are offering reduced rents due to COVID-19 and using the government restrictions to trick people into transferring money without inspecting the property,” ACCC deputy commissioner Delia Rickard said.

Scammers will post advertisements on real estate or classified websites, as well as targeting people on social media who may have posted that they are looking for a room to rent or accommodation.

The consumer watchdog has outlined that after the victim responds, the scammer will request an upfront deposit to secure the property or phish for personal information through a “tenant application form”, and promising to provide keys after the payment or information is provided.


It warned that the scammer may come up with excuses for further payments, with potential victims often only realising they have been scammed when the keys don’t arrive and the scammer cuts off contact.

So far, Australians have lost more than $300,000 to such scams in 2020 from 560 reported incidents, according to Scamwatch, with total scams up 56 per cent and monetary losses up 76 per cent this year to date compared with 2019.

According to the ACCC, some scammers are even impersonating real estate agents and organising fake inspections.

Ms Rickard said more commonly, this type of scam is leading to the loss of personal information, with scammers requesting copies of identity documents such as passports, bank statements or payslips.

“Once a scammer has your personal information, you are at risk of being targeted by further scams or identity theft,” she warned.

The deputy commissioner acknowledged that with so many individuals already struggling with financial difficulties due to the pandemic, “the financial impact of falling victim to a scam can be devastating”.

The virtual inspection fallacy

The ACCC has said one “common scam” sees a scammer only offering virtual inspections and then requesting bond money.

Ms Rickard advised potential renters to “try to view a property in person before paying any bond or rent money to landlords or real estate agents”.

For Victorian areas where COVID-19 level 4 restrictions mean this is not possible, the deputy commissioner said you can still help protect yourself by doing an online search to confirm the property exists and, if dealing with an agent, checking that the agent you are dealing with is licensed.

“Scammers often rely on email communications to avoid identification, do an independent search for a phone number and speak to the property manager over the phone or arrange a meeting in person,” she explained.

“Before making any payments ensure you are dealing with the licensed agent, if a scammer has your details, they may impersonate a real estate agent and attempt to ‘follow up’, requesting money after an inspection.”

In addition, the watchdog noted that potential renters can contact their state consumer protection agency for information on bond requirements and tenants’ rights in their state.

The ACCC is urging anyone who suspects they are a victim of a rental scam to act quickly to reduce the risk of financial loss or other damages.

They should contact their bank as soon as possible, and where relevant, contact the platform on which they were scammed.



An agent is a real estate professional licensed to guide property buyers and sellers with their transactions.


An agent is a person authorised to act as a representative in the selling, buying, renting, or management of a property.

Real estate

Real estate is a type of real property that refers to any land and its permanent improvement or structures that come with it, whether natural or man-made.


Rent refers to the payment made by a tenant periodically to a landlord for the use and occupancy of a property.

About the author

Grace Ormsby

Grace Ormsby

Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and... Read more

Virtual inspection trap triggers warning
Virtual inspection trap triggers warning
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