MAIN IMAGE: Gerhard Kotze of Realnet; Michael Visser, Head of Legal & Tax Services, Paul Stevens, CEO of Just Property
Danie Keet
National estate agency group RealNet has become the latest victim of online fraud and a scamming project in which the identities of legal property practitioners are stolen and then used to conduct fraudulent transactions.
Property practitioners should be acutely aware of the dangers of seemingly innocent requests for identity documents and other personal information, derived from random requests. In this case rental offerings were used by the scammer, known as “Ian Stoffberg ”, to obtain information illegally and then disappearing without trace.
During the scamming process, fraudulent rental listings are being advertised on a free portal at much lower prices than expected, hence getting desperate people to try and secure these “bargains.”
Once the victim has shown interest and requests to view the property, the scammer indicates that before the victim is able to view the property, the following needs to be submitted:
- Rental application form ( which includes the victim’s personal details)
- Supporting documents e.g., ID
- Proof payment (i.e., admin fees and at times a full month’s rent in advance)
It often happens that as soon as the victim has paid, the scammer cuts off communication and disappears.
These listings are most likely listings stolen from other real estate companies. They only have a cell phone number associated to it. No agent or company details are provided.
Once victims have enquired on a property listing via the online website contact form, the scammer responds via email or WhatsApp under the guise of being a specific agency’s estate agent, specifically impersonating one of their “agents”.
Gerhard Kotze of Realnet said the agency that also suffered under this scammer and warned role-players in the industry that fraudsters have stolen the identities of several legitimate agents in the group and have been using these to try to scam prospective tenants and landlords in certain areas out of deposits and so-called administration fees.
“We have of course taken immediate official action to try to curtail this activity, but we are also warning clients to check the credentials of anyone claiming to be a rental agent.
“Two other clues to the fact that a rental listing might not be legitimate are when the stated monthly rental is unusually low for the area, and when the property is not being advertised on well-known property websites or in the classified sections of well-known publications. Consumers can establish whether an agent is indeed legitimate or not by asking to see a valid and current Fidelity Fund Certificate from the Property Practitioners Regulatory Authority.”
Agents whose identities have been stolen have opened cases with the SA Police Service, and bank accounts being used by scammers have been reported to the fraud division of the relevant banks and that various fake internet profiles have been blocked and removed.
“In addition, we have retained the services of a private forensic investigator who has been successful in tracking the swindlers and is currently working with the SAPS case officer to effect arrests and ensure convictions.
“We are aware that the fraudsters have been active in Bloemfontein, Durban, Durbanville, Johannesburg, and Rustenburg, but there may be other areas involved, and we are doing everything we can to protect our valued customers as well as our reputation. Therefore, we have decided to make this information public as soon as possible,” Kotze said.
According to Michael Visser, Head of Legal Helpline at Legal & Tax Services, online scams are everywhere, and practitioners should be aware of possible pitfalls and traps.
He says online marketplaces are convenient to browse for bargains, look for jobs and turn unwanted junk into hard cash. However, due to the ease with which one can buy or sell in the digital space, there are a lot of extra precautions that one needs to take, but often forget about in the face of what seems like a fantastic opportunity.
“One must always remember that when dealing in a digital space, there is no way of confirming the identities of parties because you do not meet them beforehand. We trust blindly that the person we are dealing with is honest, but it is easy to lie on a digital platform without being caught.
“Buying anything online can easily go wrong because the rules in cyberspace are tricky. We forget that the intrinsic security and reliability of brick-and-mortar shopfronts do not apply. Many of the digital market platforms that operate in South Africa are not actually South African. Based internationally, they will not get involved in legal disputes in foreign countries, which they outline in their Terms of Use.”
Paul Stevens, CEO of Just Property warns that property scammers have become quite sophisticated
“We encourage those looking for rentals to be vigilant. It is vital that you look for ways to verify the integrity of the property listing you are interested in.
“The only sure-fire way of ensuring you won’t be scammed, is to deal through a reputable property company and double check everything. Scammers are clever conmen and women, and the smartest ones are extremely charming, and adept at tempting their victims into a false sense of security, even using real properties that are really up for rent to lure the unwary into making their deposits and paying that first month’s rent into the crooks’ account.
“Our practitioners are well informed and can easily spot anomalies or indicators of a property scam. This is one of the many ways that property practitioners add value to their clients. Our agents also have systems in place to verify tenants and landlords alike, using third-party, expert verification tools, the cost of which is carried by our franchise offices,” he concluded.
Source: https://www.legalandtax.co.za/legal-hub/10-tips-to-protect-yourself-from-cyber-scammers-when-you-shop-online
