Bad times are good times for scammers and the current economic slowdown caused by the Covid-19 pandemic are creating opportunities for property scams as scammers prey upon their victims’ greed and innocence.

It is reported that the number of property scams and illegal brokers in the industry is on an uptrend, especially during the Movement Control Order (MCO) period in 2020.

According to the Malaysian Institute of Estate Agents (MIEA) recently, there has been a 30% increase in the number of complaints received during the MCO and RMCO.

Hence, it is important for one to take note of some of the most common types of property scams, so that you won’t fall victim to these types of scams

Affordable housing scams

This is one of the most common property scams in Malaysia. The victims are usually reached out by scammers who claim themselves to be agents of the government’s affordable housing schemes or they have “someone inside” the government agency and they could get you a bargain investment, with a “relatively small amount” of upfront payment.

Once you fall for it and transfer them the requested upfront payment, you can kiss goodbye to your hard-earned money forever.

“Below market value property” deals

You may come by properties on the market that are advertised at really low prices. But the advertisements do not contain any details other than the contact number of the listing “agent”.

Once you get in touch with the person who posted the advertisement, he/she would ask you to pay for a deposit or booking fee immediately in order to secure the property as there are tremendous buying interests.

So, you quickly transfer the booking fee, which you think is just a relatively small amount that will eventually get you a property with value for money. But you can kiss goodbye to your hard-earned money forever.

Fake listings

This type of scams are rather rampant in the country. How it works is that a listing “agent” will create sale or rental listings that are not real, with images or details that they gather from the internet.

And when you contact the listing “agent”, he/she will tell you that the landlord or the owner is on vacation and thus unable to show you the unit.

Subsequently, they might take you to visit the property and let you have a look from the outside in order to convince you that this is a legit listing.

And then they would tell you to place an initial deposit to secure the unit before someone else grab the deal. After paying the deposit, the scammer will disappear with the money.

Tips to protect you against these property scams: