Online fraudsters are targeting British students and foreign holidaymakers by purporting to rent out property that does not exist. The scams work by offering to let property in prime areas at below market rents and asking for deposits, or in some cases full payment, upfront.

Police say they have received hundreds of complaints about online advertisements for flats. Potential tenants are persuaded to part with credit card details or cheques before seeing the property, which then turn out to not exist. And the payments are not returned.

Bethan Moore is studying for a master's degree in London and pulled out of a rental deal when she became suspicious. She spotted the property on upad.co.uk, one of scores of websites carrying ads for student rooms, flats and shared houses.

"It was for a house in Clapham, and the monthly rent was scarcely half the normal price for the area. I thought it was an error but I emailed the landlord and he said it was correct. It all sounded fine at first," said Moore, 20.

"But then there was a second email from him, asking me to prove I had the money for the deposit. He said he lived in Liverpool and he asked me to meet him half way, in Leicester, where I was supposed to hand over a £1,500 deposit. I didn't even reply because it sounded extremely suspicious," she said.

Moore reported her suspicions to Upad, which immediately removed the ad. Its chief executive, James Davis, said his service includes a facility for wary students to alert the site if a landlord appears bogus. "The ad is then temporarily removed for background checks to be undertaken. If it does turn out to be fraudulent it is permanently removed. We want to do as much as we possibly can to protect renters from potential fraudsters," he said.

Not everyone is fortunate enough to spot the problem beforehand. Police say there have been reports of online fraudsters duping students out of money in Edinburgh, London and Liverpool...>> Read More

Source: The Guardian Online
http://www.guardian.co.uk/money/2009/sep/27/property-fraudsters-students-tourists