Rental fraud spikes 400% amid rise in identity theft


PETALING JAYA: Fraudulent property rental cases involving identity theft have spiked drastically – from merely 184 cases in 2023 to over 900 last year, a jump of over 400% in only three years.

In most cases, the victims are not only those who have been swindled of their deposits to rent non-existent property but also comprise people whose identity has been stolen to be misused many times, resulting in a long-running legal headache.

The main modus operandi involves the use of fake profiles or accounts impersonating property agents or homeowners, advertising units for rent at unreasonably low prices as bait.

“The fraudsters typically communicate through messaging apps such as WhatsApp, Telegram and social media direct messages (DMs), pressuring victims to make advance payments or deposits and citing a limited number of units.

“They avoid physical meetings or property viewings, using various excuses,” said Comm Datuk Rusdi Mohd Isa (pic) in an interview.

The Bukit Aman Commercial Crime Investigation Department’s (CCID) director warned that syndicates are exploiting the emergence of various social media platforms and new applications due to their wide reach, low costs and difficulty in tracking.

“The modus operandi has shifted from static advertisement websites to faster, more personal and serial communications via messaging apps.

“We have also detected a trend of rapid digital identity changes among scammers, including switching phone numbers and bank accounts, using temporary social media accounts and rotating mule accounts to avoid detection,” he lamented.

Police, said Comm Rusdi, have detected that those involved in fraudulent rental schemes used automated scripts resembling chatbots, as well as short voice and video recordings, to increase their credibility.

“However, the widespread use of deepfake technology in such a scheme is limited and under continuous monitoring by CCID,” he added.

Losses from fraudulent rental cases have spiked since 2023, particularly last year, he said.

“In 2023, 184 cases were recorded, followed by 307 in 2024 and 922 last year. From RM396,246.55 worth of losses in 2023, the number rose to RM835,367.71 in 2024 and to around RM2.5mil last year,” he said, adding that 245 individuals have also been arrested since 2023.

The department, said Comm Rusdi, is focused on effectively curbing the crime, investigating such cases under relevant legal provisions, and having strategic collaboration with social media platforms, financial institutions and related agencies.

“We are also enhancing our mule account detection processes, implementing public advocacy and awareness programmes on online scams, and strengthening intelligence sharing between contingents and enforcement agencies,” he added.

He advised the public to remain vigilant and take precautionary measures, including not making any payments without physical viewings and verification of legitimate documents, only dealing with registered property agents and being cautious of offers that sound too good to be true.

“Avoid being pressured into immediate payments and promptly verify and report any suspected scams to the police,” he said.

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