Victims report losing thousands to online fraud as rental scams proliferate in Queensland.
As Australia grapples with a severe housing crisis, an alarming surge in rental scams has left many Queensland residents not only without homes but also out of substantial amounts of money.
Simon Alexander, a 39-year-old nursing student from the Sunshine Coast, exemplifies the plight of several victims who have fallen prey to these fraudulent schemes.
After relocating to pursue a career in nursing, Alexander found himself in a precarious housing situation, initially evicted from his first rental due to unauthorized subletting by a housemate.
In his search for accommodation, Alexander encountered scams on social media platforms.
After being shown a video walkthrough of a rental property, he transferred a total of $1,800, comprising a $1,200 bond and $600 in advance rent, only to discover upon arrival that the property was already occupied.
"It wasn't until I went to go move my stuff in that I realised there was already somebody there," Alexander recounted.
This experience, compounded by further scams, left him homeless and nearly $4,000 out of pocket, ultimately impacting his ability to continue his studies.
Data from IDCARE, a national identity and cyber support service, indicates a troubling trend in Queensland, where total monthly losses to rental scams have nearly tripled in the past year.
The average financial loss per scam case doubled during a five-month period, climbing from $2,280 to $4,683.
Queensland has reported the highest average personal losses from rental scams in Australia, exceeding the national average by approximately 60 percent.
Approximately 60 percent of these scams originate from social media, with 80 percent attributed to organized crime groups operating from overseas.
Kathy Sundstrom, a representative from IDCARE, noted the sophisticated methods employed by scammers, including the creation of fake social media accounts and the hacking of existing profiles to lend an air of authenticity to their listings.
Another victim, Paula Ford, a grandmother with a background in debt collection for the Australian Taxation Office, became wary when approached for upfront payments to secure rental listings she found online.
With her rental costs doubling due to changes in the National Rental Affordability Scheme, Ford's income was under threat, leading her to seek alternative housing options.
Ford reported being asked to pay a $100 Apple gift card to meet a rental advertiser, a common red flag indicative of a scam.
The Queensland Rental Tenancy Authority (RTA) has urged renters who suspect they have been scammed to report incidents to the Office of Fair Trading or the police, especially in cases of fraud.
The authority emphasized the importance of verifying the history of both the property and the listings prior to any transactions, noting that over 90 percent of rental properties in Queensland are managed by real estate agents or property managers.
Legal advice from the RTA includes ensuring that a copy of the tenancy agreement is provided before any financial commitment is made and warning against the acceptance of application fees by landlords or agents.
Sundstrom from IDCARE also advised potential renters on the importance of vigilance on social media, recommending they avoid upfront payments and prioritize viewings.
Facebook and its parent company, Meta, were contacted for their comments regarding the issue.