Real estate portals are an essential resource for buyers and tenants looking for their dream home or the perfect apartment. However, as with many online services, there are risks—especially from fraudulent property listings.

Example: CHF 2,000 monthly rent for a luxurious 140sqm apartment in the outskirts of Zurich. Can that be true? If the price doesn’t match the property details, it may indicate a fake listing. (Image: canva.com)

Key Takeaways:

Three key indicators of fraudulent listings:

  1. The price is too good to be true: Be cautious of offers significantly below market price. Check similar properties in the area to identify realistic price ranges.
  2. Little to no property information: Fraudulent listings often contain incomplete or vague information. Be wary of missing details such as exact addresses, clear photos, or legal information.
  3. Advance payments requested: Be skeptical if asked to pay deposits or fees before you can view the property in person. Legitimate landlords don’t require payments before a prior inspection.

Being mindful of these points can help you avoid scams!

Fraud on real estate portals refers to fraudulent activities where criminals create fake property listings to deceive unsuspecting buyers or renters. These scammers use attractive offers or tempting prices to lure victims in. Often, they demand advance payments or personal information, which can later be used for criminal purposes.

Common Forms of Listing Fraud

  1. Fake rental or purchase offers: Scammers post properties at extremely low prices or with unrealistic conditions. Once you’ve expressed interest and possibly paid a deposit, these offers turn out to be non-existent.
  2. Phishing attempts: Fraudsters use fake websites or emails to steal your personal or financial information, which can be used for identity theft or other criminal activities.
  3. Advance payment fraud: You’re asked to pay a deposit to secure the property, but once the payment is made, the scammers disappear, and the property turns out to be unavailable or non-existent.
  4. Fake agents or landlords: Scammers pose as real estate agents or landlords to gain your trust and extort payments. These individuals often lack legitimate references or documentation.
Example of a fraudulent email requesting a deposit payment.

Warning Signs of Listing Fraud

Tjere are some signs that a property listing may be fake:

Tips for Identifying Fake Real Estate Listings

1. Unrealistic prices:

If the price of the property is much lower than similar listings in the area, it could be a red flag. Likewise, an unusually high price without a clear explanation might also be suspicious.

A legitimate listing usually contains detailed information about the property, including size, number of rooms, amenities, and location. If these details don’t match or aren’t plausible, it could be a sign of a fake listing.

Listings with numerous spelling or grammar errors often appear less professional and may signal a scam.

Fraudsters often use stock photos or images stolen from the internet that don’t match the described property.

Serious listings typically include clear contact information, such as a phone number or email address. If the contact details seem unusual or if it’s a temporary email, that could be a red flag.

Pay attention to image details. Properties in Switzerland shouldn’t have foreign power outlets. (Image: canva.com)

Signs of Fraudulent Real Estate Providers

1. Urgency and pressure:

Scammers often try to create a sense of urgency, pressuring you to make a quick decision, for example by stating that many other interested parties exist or that the property is available for only a short time.

A legitimate seller or landlord will readily provide information about themselves and the property. If these details are missing or hard to verify, this could be suspicious.

It is often requested that an advance payment be made to “reserve” or “secure” the property, often under the pretense that there are other interested parties.

Sometimes, fake rental contracts are sent to interested parties, demanding a deposit or first month’s rent payment before the apartment can even be visited.

If possible, try to inspect the property yourself or ask a trusted third party to do so.

By following these points, you can better assess whether a property listing might be fraudulent or not.

7 Tips to Protect Yourself from Listing Scams

  1. Tip: Verify the provider’s identity: Research the provider and check their contact details and references. A legitimate provider will willingly share information.
  2. Tip: Use trusted portals: Prefer well-known and highly-rated real estate portals that implement security measures against fraud.
  3. Tip: Be wary of unusual payment methods: Avoid payments via bank transfer or prepaid cards to unknown recipients. Use secure payment methods and request receipts.
  4. Tip: Do not share your personal information too easily: Be cautious with your personal details and documents. The latter should never be sent unencrypted.
  5. Tip: Inspect the property: If possible, visit the property in person or have someone from your circle do it for you. Avoid renting or buying based solely on photos.
  6. Tip: Report suspicious listings: If you come across a suspicious listing, report it to the real estate portal and, if necessary, to local authorities to protect others from similar scams.
  7. Tip: Security on newhome.ch: Follow our safety tips on newhome.ch to protect yourself from fraudulent listings.

What to Do If You’ve Found a Fake Listing?

If you have discovered a fake listing, you can take the following steps:

  • Report the listing: Inform the platform or website where the listing was published. Most sites have specific reporting features for fraudulent content. On newhome.ch, you can report a suspicious listing directly from the property’s detail view or contact customer service via the contact form.
  • Document the details: Take screenshots of the listing, save the contact information, and note down all relevant details so you have proof later.
  • Contact the police: If you have fallen victim to a scam or lost money, you should inform the police.
  • Check your security: If you have shared personal data, be cautious and check your accounts for suspicious activity.

Safe Property Search on newhome – How does newhome prevents listing fraud?

All manually entered listings undergo a quality check before being published on newhome. The newhome customer care team verifies both the property details and the contact information of the listing agent for authenticity. If a listing is deemed fraudulent, it will not be published.

Conclusion

Listing fraud on real estate portals is a serious threat, but with vigilance and careful verification, you can effectively protect yourself. Be mindful of the warning signs mentioned and take proactive measures to ensure that your real estate purchase or rental decision is safe and transparent. By staying informed and vigilant, you can minimize the risks and enjoy the benefits of the digital real estate world.