Fraud Alert - Students advised not to pay for accommodation up front

07.09.2009

Students advised not to pay for accommodation up front

The alert, issued by the Metropolitan Police's 'Operation Sterling' Fraud Prevention Team, comes as significant numbers of people are falling victim to fraud after responding to online advertisements for flats and houses to let.

In a simple but effective scam, fraudsters, masquerading as would-be landlords, demand tenants pay a holding deposit to secure a property. But when the tenant arrives at the property to collect the keys, having paid the deposit, they discover that it is owned or rented by an unsuspecting third party who has no intention of renting it out. In some cases, the property does not even exist.

In one case, criminals "fraudulently" let a property at least 60 times.

An analysis of fraud allegations made to the MPS during one week alone found that 24 of 75 crime reports relating to 'internet-enabled' crime involved fraudulent flat lettings. This equates to around three such crimes being committed each day. Given that such crimes are traditionally under-reported, officers warn the figure could be even higher.

Operation Sterling team leader DS Chris Felton said: "Making a 'holding deposit' or paying rent without visiting a property is giving the fraudster easy pickings. It is difficult to establish whether the person advertising a property has the right to do so, especially with private lettings. Prior to placing even a small 'holding deposit' visit the premises and satisfy yourself that the premises exist and that the person letting it out has the right to do so."

The fraudulent advertisements most often appear on free advertising web sites where there is no transaction between the advertiser and site-owners.

Students are urged to use established letting agents or landlords approved by their university or student's union.

Those who do use private landlords are urged to check the premises in person and to ensure that the person negotiating the lease has the right to let the premises out.

In a bid to outsmart the fraudsters, Operation Sterling is distributing fraud prevention advice to 17 universities. Top tips to avoiding becoming a victim include:

• Try to use landlords and agencies that that are approved by the Universities
• See the flat, house or room before you part with money and ensure the landlord has the right to let it out.
• Don't send money via a money transfer agent.
• Don't be tricked into sending money via a money transfer agent to friends or relatives as proof of funds. This money can be intercepted.
• If you feel uneasy with the transaction walk away.

Those who do fall victim to this crime should report it to their local police station and inform the site were the advert was placed.

NUS Vice President for Welfare, Ben Whittaker, said: "Students are more at risk from this type of fraud because many of them have little experience of renting a property, and they are often in a rush to find somewhere to live before term starts.

"NUS advises all students to think carefully before entering into any agreement. They should speak to their students' union for advice on local accreditation schemes for landlords, and should never transfer money over the internet before viewing a property. If a deal looks too good to be true, it probably is."

Read the full advice document: Students letting advice and press release.

Further advice can be found at:

• Department for Communities and Local Government Tenancy Deposit Protection Scheme.
• National Union Of Students.