Fake holiday rental listings: how to spot the signs

Fake holiday rental listings ask you to pay for a property that does not exist, or for a booking the real owner knows nothing about. SCAMwatch is a website run by the Australian Competition and Consumer Commission (ACCC). It has issued alerts on rental and accommodation scams, including in August 2008, November 2010, November 2011 and May 2013. Here is the short version of its advice. Contact the company directly, using contact details you looked up yourself. Treat a price that looks too good to be true as a warning. Where possible, avoid paying by money transfer.

Sources for this section: SCAMwatch, About; SCAMwatch, radar list; SCAMwatch, winter getaway alert; SCAMwatch, rental properties alert.

How the scams work

The May 2013 alert says SCAMwatch has received reports that scammers continue to target would-be travellers with holiday rental scams. It lists three common travel scams, including these two.

The first is the fake listing. On a reputable online accommodation service, you find an ad offering a property for rent at a really cheap price. The offer may use fake copies of genuine ads. The "seller" asks for payment by money transfer. If you take up the offer, you find on arrival that the owner knows nothing about the deal. The owner might not even rent out the property.

The second is the hacked website. SCAMwatch says scammers are reportedly hacking into popular holiday rental or travel websites to intercept emails between travellers and legitimate providers. The scammer then takes on the identity of the owner and steers you into paying them the rental fees for a bogus booking. When you arrive, the real owner has no record of the "booking" and you are left with nowhere to stay.

Sources for this section: SCAMwatch, winter getaway alert.

Red flags in the ad and the replies

SCAMwatch's alerts and its classified scams page point to these warning signs.

• The price is very low, often lower than comparable listings on the same and other sites.
• The "owner" makes excuses for why you cannot see the place. If you show interest, you get a long email explaining why, typically because the "owner" is out of the country.
• The "owner" insists on immediate payment, or on payment by electronic funds transfer or a wire transfer.
• The "owner" wants to deal outside the website's payment system. If you do, you lose any protections the site offers its users.
• Scammers typically try to trick you into paying an up-front fee. For a holiday rental, a scammer may request another electronic transfer when you enter the country.
• The messages may be poorly written and will ask for personal information, sometimes disguised as a rental application. SCAMwatch says never to provide personal details by email. It says scammers will use them to steal your money or commit identity fraud.
• An email from a stranger arrives out of the blue offering a great holiday deal. SCAMwatch says to delete it, without clicking links or opening attachments.

Do not trust an ad just because it appears in a reputable newspaper or online classifieds website. SCAMwatch says scammers often use these.

Sources for this section: SCAMwatch, rental properties alert; SCAMwatch, Classifieds scams; SCAMwatch, winter getaway alert.

How to check a listing before you pay

SCAMwatch's tips for checking an offer include these steps.

• Contact the company directly, using contact details you sourced independently through a phone book or online search.
• Search online for the address of the property, the name of the person offering the property and their email address. SCAMwatch says many scams can be identified this way.
• Search for the exact wording of the ad. SCAMwatch says many well-known scams can be found this way.
• Check that the web address is the legitimate website, and that the names and addresses match publicly available information.
• Ask for several photos. On classified ads, SCAMwatch says a seller who refuses may have stolen a photo from a genuine ad and have no others.
• For residential rentals, SCAMwatch says to insist on inspecting the property: just driving past is not enough. The property may exist but be owned by someone else.

Booking an Australian holiday rental from overseas? SCAMwatch says to ask someone you can trust to make inquiries. A real estate agent in the area may be able to help. Booking a rental overseas? SCAMwatch says to search the web for the property or speak with a real estate agent in the area.

Sources for this section: SCAMwatch, winter getaway alert; SCAMwatch, rental properties alert; SCAMwatch, Classifieds scams.

Safer ways to pay

SCAMwatch's About page says it is unlikely you will be able to recover money lost to a scam. We would settle how you will pay before you send anything.

First, know what to avoid. SCAMwatch says to avoid, where possible, any arrangement with a stranger that asks for up-front payment by money order, wire transfer or international funds transfer. It says it is rare to recover money sent this way.

Second, keep the payment on the booking site. SCAMwatch says to consider a reputable accommodation website that offers added protection. Airbnb's help centre says all legitimate payments on Airbnb take place through its website. If a transaction happens offline and Airbnb has no record of it, Airbnb says it is almost impossible for the company to help. It adds that key words such as Western Union, MoneyGram and money order should be immediately flagged to Airbnb or avoided.

Third, think about your credit card. In its guide to online shopping scams, SCAMwatch says this about credit cards. If you paid by credit card and there has been some sort of fraud, you may be able to arrange a charge-back. You arrange it through your bank or credit union. A charge-back effectively reverses the transaction. The same guide says to be very careful about paying by credit card. It says to make sure the website used for payments is secure. It also says never to enter credit card details on a website you are not certain is genuine.

Sources for this section: SCAMwatch, About; SCAMwatch, Classifieds scams; SCAMwatch, rental properties alert; SCAMwatch, Auction & shopping scams; Airbnb Help Centre, payment off the website.

If you think you have been scammed

If you think you gave financial details or sent money to a scammer, SCAMwatch says to contact your financial institution immediately. You can report the scam to the ACCC through the report a scam page on SCAMwatch. You can also report it by calling the ACCC on 1300 795 995. Did you hand over copies of personal identification documents, or other personal information? SCAMwatch warns these could be used to commit identity fraud.

Sources for this section: SCAMwatch, winter getaway alert; SCAMwatch, Classifieds scams.