Sydney renters caught in online scam
Online fraudsters have been caught targeting Sydney renters, a 7News investigation has revealed.
The network of scammers have been found demanding large sums of money from apartment hunters in Sydney and other cities across Australia for the promise of a rental apartment, then disappearing with the cash.
Victims of the scam tend to be students, young professionals and new arrivals to the city that have little experience in the competitive Sydney rent market.
Taking advantage of the recent upsurge in Sydney's rental market, scammers have been playing on the city's high prices due to fewer properties on the market.
During the 7News investigation, the scammers were engaged in communication for several weeks attempting to rent out a luxury flat on Macquarie St in inner city Sydney using photos allegedly copied from a Sydney estate agent.
The building is comprised of hotel rooms and short stay serviced apartments. It has been targeted by scammers before, according to 7News.
Money was requested in return for the flat to be held in advance of a purported flat viewing.
Other properties in Harbour Street, Pitt Street, Elizabeth Street and Wentworth Avenue have also been targeted.
According to 7News, the email addresses and cover stories used to 'sell' to victims are swapped among the group.
One victim from Brazil, who was due to move to Sydney in the next few months says that while searching for a room-share accommodation she fell victim to one of the fraudsters and lost $1,500.
Speaking to 7News from Brazil she said: "The thing is I believed her, that I could lose the place."
"And so agreed to send the first month plus security deposit."
"It was $700 per month plus $800 security deposit, that she was supposed to give me back on my last day in Sydney."
The managing editor of one Sydney website targeted by scammers suggested this group was most likely operating from Nigeria or eastern Europe.
Andrew Maloney of Flatmates.com.au also said it made sense they would target a specific city and build up knowledge about it to make their cover stories more convincing.
Peter Kell, Deputy Chair of the ACCC, said scammers like these were involved in a wide range of illegal activities, "We're talking about sophisticated international criminal networks, they're very sophisticated in what they have to offer."
Accommodation hunters in cities like Paris and London have been targeted in the past few years
A number of computer experts and online activists are now fighting back against the scammers, tracking IP addresses and destroying suspected websites used in cover stories.
Their research has triggered the development of an archive of fake and stolen passports, and ID documents used in a huge variety of scams across the world.
The 7News report and research has been passed onto the Australian Federal Police.
If you have been involved in online fraud or require more information see www.scamwatch.gov.au
