Spain's newest rental scam scheme and how to avoid it

Rental scams are becoming increasingly common in Spain and it is important to know how to detect and avoid them. In this story, we will cover the unscrupulous behavior of scammers on real estate portals and the importance of being informed to avoid falling into their trap. We have all the details on the latest case of rental fraud in Spain and how to avoid it.

Knowledge is the key to avoiding scams

According to Ruth Garcia Ruiz, a cybersecurity technical specialist, knowledge is integral to avoiding rental scams. According to her, the more we know about these scams, the more vigilant we become and the harder it is for us to fall for their tricks and provide important information, such as our passport, to the wrong people.

A recent case of rental fraud in Spain

It all started on October 19 with a search for apartments for rent on idealista.com. A Spanish woman of Armenian origin and tax analyst by profession Hripsime Avetisyan, who was interested in renting an apartment, was interested in an offer of an apartment for 750 euros on Denia Street in Valencia, which is the market price for a one-room apartment of 64 square meters in Rusafa district. In response to the advertisement, the interested party called the phone number provided, but did not receive an answer at that time. The fraudsters have since contacted via WhatsApp, the communication channel that was used during the entire process of their communication with Ripsime.

From the outset, both warned the Spaniard that the apartment was in high demand and there would be a preliminary study of the applicants in order to obtain a guarantee of prepayment. They therefore requested a copy of the passport, a salary certificate and a direct debit receipt. Before sending this request, Ripsime, aware that the information was sensitive, consulted a friend of hers who has experience in the real estate industry. "It's not the most common practice, but in some cases with apartments that are in high demand, they do it," she received in response. "When you see an apartment you like, you get a little blinded, you want to convince yourself that everything will be fine. They gave me the address of the agency and invited me to drop by whenever I wanted," Ripsime explained.

A couple of minutes after sending the documents, Ripsime received a call from her friend alerting her that the ad they were talking about had been removed from the real estate portal. In its place was a warning about a "suspicious listing", which the portal uses to filter out possible fraudulent offers. For an explanation about what was happening, Ripsime contacted Sofia. In response, Sofia sent the following message: "Because we have many candidates in mind. More than 20 people want this apartment."

It is worth noting that the Story was much more convoluted and the fraudsters, fortunately for the concerned party, showed some imperfection. The alarm was raised when a premium bicycle was delivered to the address on Ripsime's passport card (which she used to communicate). Her relative immediately raised the alarm, surprised by this €7,500 purchase, which she found out about at the very last moment due to a mistake by the fraudsters. In addition, the purchase receipt contains one of the two phone numbers used by the alleged agency when communicating with Ripsime.

Increasingly anxious, she personally contacted Inmobiliaria Igarka, where Sofia claimed to work, after a new request for an explanation. A conversation with the owner, Nora Garcia Ripsime, confirmed what she feared: they did not have the aforementioned apartment for rent, and the two people she spoke to had never worked there. Once the fraud was uncovered, they decided together to approach the relevant authorities to file a complaint. But Ripsima still needed to find out how her data had been used.

Continuing to investigate the delivery of the bike, she contacted the supplier and discovered that the purchase had been financed by Cetelem. On contacting this consumer credit company, she discovered that the same loan had paid for a MacBook laptop priced at €1,840. Ripsime's quick action allowed her to return the bike and stop the shipment of the computer: "If I hadn't found out about it, the next month I would have received my first bill for more than 700 euros, but I still don't know what surprises await me.

What the experts say

“They usually register a legitimate user profile, which they use to post one or more ads, for which they use beautiful real photos taken from the internet, and although this does not apply to this case, they often have an attractive price, below market value,” explains Ruth García Ruiz from Incibe, describing the typical modus operandi of scammers on real estate portals in Spain. She also offers some tips on how to enhance our defensive awareness as users, but reminds us that there is a phone number 017, as well as other assistance channels available for citizens.

What to do before and during contact with the advertiser

García Ruiz points out that scammers prefer to use homes with minimalist decor in light colors, "which attracts most young people." "The key point is to identify such fake listings in advance, because after providing the information, they can cause a lot of harm," she explains.

Scammers usually use prestigious online platforms "because they offer additional security to users." "You should check the company name or owner details to understand who you are dealing with. Be cautious of poorly written ads, as this indicates a lack of professionalism or the use of an automatic translator. You should also analyze the photos, even using apps like Google Images, which allows you to find out if they are used in other ads unrelated to yours. It's important to look at user comments and be wary if there are none."

It's important to keep in mind that after the first contact, the scammer will quickly try to move the conversation off the official channels of the platform, usually to WhatsApp. "Sometimes they may also provide malicious links to obtain our data, for example, justifying a deposit fee by directing us to a fake payment platform." We should be vigilant about any kind of requests that go beyond the ordinary, such as when they say they are abroad and cannot show the apartment.

What to do if you have suspicions

“When there are signs of fraud,” Ruiz continues, “you can take some initiatives to help us understand what’s happening, while always keeping all possible evidence of various contacts with them. This is a key point in case a complaint needs to be filed.” In such cases, when a user has doubts, “if we talk to the owner, we can switch roles and ask them to prove that they are the owner. In other cases, we can ask for more photos to see what they send us, or make an unusual request. For example, to paint the walls turquoise or to say that you want a freezer in the kitchen – the point is to see how they react, because if they don’t mind an unusual request, the suspicion will be more concerning.”

What to do if you fell into a scammer's trap in Spain

"In addition to systematizing all possible evidence that you have become a victim of fraud, you should file a complaint with law enforcement. This step is necessary in order to present it to the companies where you may have made purchases or taken out a consumer loan. This is the only way to prove that someone has used your identity." Another piece of advice from the Incibe technique, known as 'egosurfing.' "You can use any search engine, such as Google, to find out what information is available about you. You need to enter your first and last name, birth certificate number, email address, or any other information that is listed in the documents used by the fraudster, and check that they have not created false profiles or used your data without your consent. If they have, we should request the removal of the information and file a complaint."

What can real estate agencies do?

As for companies, in this case real estate agencies, that scammers imitate or use as bait during contacts to gain the victim's trust, Garcia Ruiz believes there isn't much that can be done. "Unfortunately, anyone can be imitated. Becoming the owner of a corporate image of any real estateagency to create fake profiles is quite easy, and there's not much that can be done about it. Again, a good recommendation is 'egosurfing': 'They should check for fake profiles, even on the platforms where they are posted. Even if they are not responsible for the fraud, their reputation will suffer, and the sooner they find out about it, the less damage will be done. For platforms that have a profile verification system, they can also request a badge that informs the user that they are indeed dealing with the company they want to.'

Tips from Idealista to avoid fraud when renting

Idealista acknowledges the complexity of protecting against fraud with various procedural actions. However, they have developed a "toolkit and procedures that minimize the potential consequences of hypothetical criminal activity. We have a quality team that constantly listens to the alerts our users send us through suspicious listings, Twitter, or any other available resource. Additionally, we are in constant contact with law enforcement to pursue these crimes."

It is also reminded of the importance for owners and business users to "never provide access data in any way, as well as the confirmation code received via SMS after posting an ad. And when you land on a page where you need to enter your login details, check if you are using a secure page, for example, one that starts with https://www.idealista.com/. Never trust other addresses that do not start with this prefix. Following this rule will help you avoid many problems."