PETALING JAYA: The surge in property rental fraud is due to the shift to social media platforms and high housing demand in areas like the Klang Valley, say experts.
They say social media platforms are favoured by rental scammers for their broad and targeted reach, inadequate moderation and ease of anonymous posting.
Veteran property agent Soma Sundram said rental frauds have evolved in the past years with scammers currently utilising the social media platforms as their main base.
“I have been doing this for 39 years. I have been fighting the illegal brokers all my life, having been the past president.
“But it has taken a new twist these days. It is because of social media that it becomes much easier to gain prospective tenants (for illegal brokers or online scammers),” he said in an interview.
Real estate transactions, stressed the former Malaysian Institute of Estate Agents CEO, are not being taken seriously enough.
“Even though there are laws to catch anyone who illegally presents himself or herself as a real estate agent or misuses an agent identification, until today we have yet to see anyone being charged for it,” he added.
Soma said unlicensed individuals, commonly known as illegal brokers, frequently impersonate certified real estate negotiators by using stolen registration numbers, company names and official-looking forms.
In more advanced cases, fraudsters, he said, download legitimate tenancy agreements and alter bank account details, making the transactions appear genuine.
He stressed that legitimate agents are strictly regulated, required to renew their Real Estate Negotiator (REN) or real estate agent (REA) registration annually, undergo compulsory training and display a valid REN tag.
“Consumers must ask to see the tag, verify the REN number on the board’s website and never pay money into a personal account. When making transactions, those payments should be directed to the firm’s client account,” he added.
Cybersecurity expert Emeritus Professor Datuk Dr Mohamed Ridza Wahiddin said online rental fraud and impersonation of property agents exploit trust, urgency and the desire for a good deal.
“These scams can also lead to identity theft as personal data collected from victims may later be used to open accounts, take loans or commit other crimes,” he said.
Mohamed Ridza noted that online rental scams have surged due high housing demand and the shift to digital platforms, with cases reported in Selangor and the Klang Valley involving both locals and foreign students.
These transactions are often conducted through fake agents advertising on popular online marketplaces where people are unfamiliar with rental practices and need a place to move in urgently.
“Scammers leverage on artificial intelligence and deep fakes to create hyper-realistic rental listings and impersonations that bypass traditional detection, making fraud harder to spot,” he said, adding that these types of crimes involved low risks with high returns.
“Their common targets include first-time renters, newcomers to an area and those in urgent housing need as they often overlook verification steps amid high demand.
“Social media platforms are favoured by rental scammers for their broad and targeted reach, inadequate moderation and ease of anonymous posting in high-demand markets like Malaysia.”
Financial forensics expert Raymon Ram said rental scams in Malaysia have moved well beyond basic fake advertisements and now involve deliberate and calculated deception.
“One of the most worrying trends is impersonation, where scammers pose as legitimate real estate agents or owners using stolen names, photographs and even real registration details,” he said.
Another common tactic, Ram said, involves copying genuine listings from legitimate platforms and reposting them on social media at slightly lower prices to generate rapid interest.
“Victims are then subjected to pressure tactics, with scammers claiming there are multiple interested parties and insisting that a deposit be paid immediately.
“In more elaborate cases, scammers have even arranged property viewings through deceptive means, giving victims a false sense of legitimacy,” he said, adding that such cases are reported nationwide, particularly in high-demand urban areas such as the Klang Valley.
He said rental fraud remains prominent because it exploits market pressure and predictable human behaviour, with cases also reported in other countries.
“As long as renters feel pressured to act quickly and online platforms lack strong verification, these scams will continue,” he said, adding that Facebook, WhatsApp and Threads are favoured by these fraudsters.
“Fake profiles can look very convincing, and once the scam is completed, accounts can be deleted and recreated easily.
“Do not pay anything without proper verification. Slow the process down, insist on checks and never give in to pressure.
“A genuine landlord or agent will allow time for verification. A scammer will not,” he said.
