People are being warned not to fall prey to online property scams currently doing the rounds.

The Real Estate Institute of New Zealand has been made aware of several recent online property cyber scams - particularly in the property management and online rental listing space - which are becoming increasingly common.

In May, an Auckland property management company was unknowingly involved in a cunning online scam by a scammer who duplicated one of the company's listings from a listing portal and posted it on their personal Facebook page.

A victim fell for the scam and gave the scammer, (who was posing as the ‘landlord'), their personal information and bond payment before they realised they had been scammed.

The cyber-criminal had registered the victim to view the property, using the contact information the victim provided to the scammer, through the property management company's website.

The scammer then pretended that they were the owner offering a deal separate from the property manager, and offered the property to the victim if they paid their deposit immediately.

Whilst the bank was fortunately able to reverse the victim's payment before it was too late, it could have easily resulted in the victim losing a significant amount of money.

'The most disappointing part of this experience is that these scammers are preying on vulnerable and desperate people - people who really need to find somewhere to live - and people who can at least afford to lose up to five weeks rent and bond. It's a colossal amount of money to lose for most people,” says a spokesperson for the property management company impersonated.

REINZ was also notified of another online scam where a scammer had used a property management company's name and logo to email property seekers through a property listing portal about available rental listings — in a city in that property management company has no presence.

'We are hearing from our members that these types of scams are becoming increasingly common and it's crucial that renters are aware of the signs to look out for so they don't fall a victim. It's just as important that property management companies are educated on the types of online scams that are occurring, so they can inform staff on best practices when dealing with clients,” says REINZ chief executive Jen Baird.

The property management company impersonated by a cyber-scammer says it has instructed its staff to inform every prospective client that the property is only listed with its company, and if anybody is trying to engage with them about a property in way other than through its website or its listing portal, it is illegitimate and a scam.

REINZ's cyber-security awareness partner Phriendly Phishing provides the following advice for renters:

Verify the identity of the property manager or owner: Be cautious of people claiming to be property managers or landlords on social media. These platforms can make it easy for scammers to impersonate legitimate entities. If you are searching for property on social media, it is a wise idea to independently look up the official contact information for the property management company they claim to represent and contact them through that official channel to verify their identity. Never rely solely on the contact information provided by the person on social media.

Official channels of communication: Where possible, use official property listing websites, property management company websites, or official office numbers to make enquiries or schedule viewings. Communicating or closing deals through social media platforms or personal email addresses can be a
red flag for potential scams.

Beware of unusually low rent prices: If the rental price seems too good to be true, it probably is. Scammers often lure victims in with incredible deals. Do some research on what a typical rental price
should be in the local market. If you see the same property advertised with two different prices, take a
closer look at whose listing it really is.

Do not pay money upfront: This includes security deposits, rent, or other fees. If you are emailed a link to pay your deposit, make sure you scan for S.C.A.M - scrutinise the sender, content, and action
needed and then manage the situation once you have ascertained it is legitimate or report if it is a
scam.

Ensure legal documents are provided: Make sure all agreements are in writing and understand all
terms and conditions before signing. A legitimate landlord or property manager should provide a
formal tenancy agreement. Be suspicious if they are reluctant or refuse to do so. Again, do not open
any attachments or links in email communications, and insist on an in-person meeting to sign a lease.
Be careful here though too - scammers are generating official tenancy agreements using the MBIE
website. Make sure that the person with whom you are dealing is the owner or authorised to rent the
property.

Learn more at phriendlyphishing.co.nz.