Imagine spending much effort scouring through every red and green flag of the property market, only to lose thousands of dollars to a scammer, all in your quest for a home or the perfect renovation. This scenario is becoming alarmingly common in Singapore, with property-related scams on the rise.

These schemes prey on trust and desperation, turning hopeful dreams into costly nightmares. In this article, we will uncover the most prevalent scams - rental rip-offs, fake agent scams, and renovation robberies - and provide you with essential tips to safeguard your property journey.

Source: Mothership

Rental scams are an unfortunate reality in Singapore's competitive property market, preying on individuals desperate to secure housing quickly. These scams often involve fake listings, phantom landlords, and fraudulent tenancy agreements, leaving victims financially and emotionally drained. In fact, it was reported that the number of home rental scams jumped exponentially from 192 cases in 2021 to 979 cases in 2022.

Source: Today Online

There was even a serial scammer aged 58 year-old who deceived 14 prospective tenants into renting her HDB flat, collecting over $63,000 in the process. She advertised her flat on various platforms, such as PropertyGuru, Carousell, and Gumtree, even though the unit was either already rented to others or lacked the necessary HDB approval for leasing. After securing advance rental payments and security deposits, she gave various excuses - such as delayed renovations or pending HDB approvals - to avoid handing over the keys. In some instances, she solicited additional funds from her foreign victims, citing urgent personal needs like family medical issues. Despite being arrested and out on bail for some offense, she continued her fraudulent activities.

Tactics scammers use

Scammers have refined their methods to appear convincing and legitimate. Here are how they operate:

• Fake listings: Scammers create fake advertisements on reputable platforms, often using stolen photos of actual properties to lure victims. Majority of the scammers create fake advertisements on free platforms such as facebook.

• Phantom landlords: They concoct stories about being overseas or unavailable to meet in person, making excuses to avoid face-to-face interactions. Viewings will be via pre-recorded videos, and the videos may also be that of an awesome looking interior design to make you think "WOW! I spotted a steal" to steal your money.

• Demands for deposits: Scammers push for immediate payments to "secure" the property, exploiting the victim's fear of missing out in a competitive rental market. This evolved from requests for deposits to view during the Circuit Breaker Period. Scammers also provide Integrated Land Information Service (INLIS) title search, electronically signed documents, and also NRIC of the owners (and YES these are NRICs which are valid because they belong to landlords who have also been scammed).

Why it works

Singapore's tight rental market, especially in popular areas, creates a sense of urgency among prospective tenants. The fear of losing out on a good deal often leads people to act hastily without verifying details. Scammers also leverage the credibility of established property platforms, making their listings appear trustworthy.

How to outsmart them

Protect yourself by taking these steps:

• Always visit the property in person: Avoid committing to any rental without physically viewing the unit. If the landlord refuses to allow viewing, it is a major red flag.

• Verify the landlord's identity: Request documentation proving ownership of the property. Cross-check the landlord's details with official records by conducting a property title search at INLIS. Scammers are known to have provided doctored property title search to unexpecting victims. If an electronic payment method is used, pay to the NRIC of the owner stated in the INLIS title search.

• Use official channels or licensed agents: Engage only with licensed property agents who can be verified on the Council for Estate Agencies (CEA) website. Working with a reputable agent significantly reduces the risk of scams.

Source: Asia One

Fake agent scams are among the most deceptive, as they exploit the trust that individuals place in property agents. Scammers pose as legitimate professionals, often providing fake credentials to appear credible.

Source: Asia One

It was reported in May last year that a 70-year-old homeowner was visited by seven groups of 'tenants' across six months. Turns out an "agent", who was impersonating an actual property agent, has been using his address in fake rental listings. One such victim found the listing on Facebook Marketplace. After negotiating successfully a monthly rent of $2,780, she paid the agent the 2-month security deposit. However, she was told by the agent to pay an additional $2,000 in "taxes". Another victim was a couple who lost $12,000 to the scam. The victims only found out about the scam after going to the unit and finding out that the house was never up for rental.

Tactics scammers use

• "Fake-real" credentials: All (YES ALL) scammers will show victims a picture of a REAL real estate salesperson identity card; if you check CEA's register, you will see that the agent is registered with CEA.

• High-pressure tactics: They are quick to agree to any demands, as well as being pushy for immediate deposits, claiming other interested tenants are competing.

• Unbelievable deals: Offers that often seem too good to be true generally are hiding something sinister.

Why it works

In Singapore's fast-paced property market, fear of missing out (FOMO) drives many to act impulsively, especially when their unspoken desires are met. The apparent professionalism of these scammers disarms suspicion, leaving victims vulnerable. Some speak and text perfect English, Mandarin and even Bahasa!

How to outsmart them

• Always verify the agent's credentials using the CEA's online registry. A VERY IMPORTANT POINT to note is the CEA Registration number will always be valid, but the phone number which the scammer uses will be different from CEA's registry. ANOTHER VERY IMPORTANT POINT is you must communicate using the registered phone number (chances are the person answering the call will say, "Huh? The property has been rented out.") ANOTHER VERY IMPORTANT POINT is if you confront the scammer on the different phone number, you will be shown a screenshot of a doctored email from CEA stating that the scammer changed his mobile number and will take effect in 2 weeks time."

• Request documentation proving ownership of the property. Cross-check the landlord's details with official records such as doing a property title search at INLIS. Scammers are known to have provided doctored property title search to unexpecting victims. If an electronic payment method is used, pay to the NRIC of the owner stated in the INLIS title search.

• Be wary of agents who avoid transparency, rush decisions, seem evasive, or practise the disappearing act. A VERY IMPORTANT POINT to note is during viewing, scammers often send their PA to conduct the viewing, and when you ask where the scammers are, they will send you a picture of a few people having a discussion. ANOTHER VERY IMPORTANT POINT to note is that the PA is also likely to have been scammed by the scammer to carry out the viewings with victims.

Renovation scams are getting alarmingly more common these days, and many homeowners have fallen prey to these nasty schemes. Just last year, police arrested a man who committed a series of renovation scams that amounted to over $198,000.

Source: Singapore Police Force

Here's how it usually goes: uncertified contractors convince victims to pay hefty deposits upfront, only to do the bare minimum (or nothing at all) before vanishing into thin air. In some cases, they might even ask for additional fees for "unexpected costs" before going completely off the radar. What started as attempts to save money on costs ended up leaving victims high and dry with an unfinished home and an empty bank account.

And before you blame the victim for being careless, let me remind you that this can happen to anyone, even people who work in finance! In fact, there are more victims than you can imagine! Just a couple of years ago, mothership reported that 17 people fell victim to these scams, losing a total of $527,000.

Source: mothership

One of those victims is Leong, who secured a bank loan of S$42,000 to fund the renovation. The bank sent the funds directly to the renovation company through two cheques, each valued at S$21,000. When the renovation company received the first payment, they actually began construction, making good progress. Then, they tricked Leong into making the second payment, promising to finish the renovation in less than two weeks. That's where things went south.

The contractor began making excuses, claiming to be really busy and unable to manage Leong's renovation. These delays stretched over three to four months, during which only about 15% of the work was completed. Frustrated by the lack of progress, Leong persistently followed up with the contractor, who alleged that his subcontractors had "run away" after being paid. He then offered a shady solution, which was to sign a new contract without any official letterhead. Leong suspected the contractor's intention was to offload the project to another company and absolve himself of responsibility. In the end, Leong refused to sign the document and had to pay someone else out of pocket to finish the job.

Tactics scammers use

• Low quotes: Ironically enough, scammers lure you with the idea of saving money. But if they lowball too much it would be too obvious! So scammers may set prices at just enough below the market standard so it doesn't seem "too good to be true".

• Claims of experience and quality of work: Scammers will even go as far as to show you "ongoing projects" that are almost done to convince you they can provide the service you are looking for.

• Renovation actually begins: The scammers may actually start working on the renovations to convince you that everything is legit.

Why it works

People tend to look for a better deal, and let's be real, who wouldn't? So when you find a cheaper alternative, it naturally grabs your attention. Scammers know this and cleverly provide lower quotes to get you hooked. Seeing portfolio and current projects may also trick you into believing these so-called contractors are reliable, so you assume there's no need to check their credentials. Seeing the renovation start makes it feel even more real, so you're willing to pay a hefty amount upfront without a second thought.

How to outsmart them

• Research and verify the contractor's company. Check if they're on the list of CaseTrust companies or contractors who are registered with HDB. Also check their licenses with the Building and Construction Authority (BCA).

• NEVER pay the full amount upfront. You should negotiate an incremental payment plan based on the project's progress, and don't forget to create a detailed contract.

• Use apps with an MAS-approved wallet system. One example is HomePay, a platform that connects interior designers and clients.

Falling victim to property-related scams in Singapore can have wide-ranging consequences that go beyond just financial loss. The impact can disrupt your immediate plans, create long-term setbacks, and leave you emotionally drained.

1. Financial loss

The most immediate consequence is monetary loss. Victims of rental scams often lose their hard-earned savings in the form of deposits. In fake agent scams, payments made for properties that either do not exist or were never available for rent or sale are almost impossible to recover. Renovation scam victims are left with unfinished projects, substandard work, or no work done at all, forcing them to spend even more to rectify their situation.

2. Emotional loss

The emotional toll of being scammed can be overwhelming. Victims often feel embarrassed, angry, and helpless. The stress of dealing with the aftermath - such as finding alternative housing, seeking legal recourse, or correcting shoddy renovations - can take a significant mental and physical toll.

3. Delays and disruptions

Scams often derail critical timelines. Rental scam victims might find themselves scrambling for accommodation at the last minute, incurring additional costs for short-term solutions. Homeowners dealing with renovation scams face delays in moving into their homes, which can disrupt work, school, and family routines.

4. Legal and administrative hassles

Seeking justice can be a frustrating and lengthy process. Filing police reports, providing evidence, and dealing with courts or mediation services can take months or even years. While some cases result in successful prosecutions, many victims never recover their losses due to the scammer's elusive nature or lack of assets.

5. Erosion of trust

Perhaps one of the most insidious effects of falling victim to a scam is the erosion of trust. Victims often become wary of legitimate agents, landlords, or contractors, making future transactions unnecessarily stressful. This mistrust can lead to missed opportunities or excessive caution, impacting how victims approach future property dealings.

The cost of being a victim extends far beyond dollars and cents - it affects your time, mental well-being, and confidence. This is why vigilance and due diligence are crucial in every property transaction. Safeguard yourself by learning to identify red flags and always verify credentials to avoid falling prey to these scams.

Call the bank

When you've communicated your concerns but get dismissed, it's a clear sign to take further action. The first thing to do is to call your bank, report the scam, and ask them to stop any further payment. Afterwards, call the beneficiary bank to report the scam as well.

Report to authorities

The next thing you want to do is to lodge a police report. Depending on the scam, you should also notify the appropriate authorities like the Consumers Association of Singapore (CASE), CEA, or BCA.

Consider Legal Action

If the financial loss is significant, consulting a lawyer may be necessary. Legal professionals can outline your rights, advise you on filing claims, and help navigate the process of seeking compensation.

Notify PropNex

If you suspect any scam-like activities involving a PropNex agent, do send us an email at feedback@propnex.com. Provide relevant details including RES info such as ID tag, phone number used to contact you, and the listing, then wait for our confirmation as we do an internal verification. Remember, don't pay any money to anyone throughout this process

In general, you should be cautious of social media platforms as they can be exploited for fake listings and scams. So who can you trust?

The first and foremost would be the Singapore Police Force. They play an important role in investigating and arresting individuals involved in scams.

Secondly, we have the Council for Estate Agencies (CEA), whose role is to regulate property agents. They enforce strict licensing requirements, professional codes of conduct, and disciplinary actions against errant agents.

Then there are consumer advocacy groups like the Consumers Association of Singapore (CASE), which mediates disputes and offers guidance.

For renovation scams, the Building and Construction Authority (BCA) oversees contractor standards and provides consumers with a list of accredited companies.

Authorities do their part to prevent and tackle scams, but so should we. Just like vaccination, the more people are immune, the stronger the community will be in combating a particular disease. When more people are aware of the sneaky tricks scammers use, it makes it harder for them to prey on a new victim. And even if they are still on the hunt, at least your friends, family, colleagues, and even that one cousin who's always sharing dodgy deals will be less likely to fall for their schemes. Knowledge is power, and the more we spread it, the harder it will be for scammers to thrive.

Property scams are an unfortunate reality, and though a majority of the victims are foreigners such as students and employees, scammers do not discriminate. So you're not safe from being scammed because you're a local. To them, anyone who puts their guard down is fair game.

So, staying informed is your best defence. Chances are if it is too good to be true, it often is a scam. Whether you are renting, buying, or renovating, take the time to verify every detail before committing. Have you ever encountered such scams? Share your story with us - it might just save someone else from a similar fate. With vigilance and the right precautions, you can protect your property dreams and ensure smooth, scam-free transactions.

Views expressed in this article belong to the writer(s) and do not reflect PropNex's position.