8 June 2024
Jaiden and Cody were living with Jaiden’s mum in a tiny one-bedroom, one-bathroom house on the outskirts of Hobart and were desperate to find their own space when they were scammed out of $3,000 – 12 months of savings – through a social marketplace rental listing. Sadly, they’re not alone. Australians lost a record $3.1 billion to scammers in 2022, up 80% on the year before!1 Scamwatch data shows that since the COVID pandemic, rental scams are on the rise.2
“The person with the listing sent me an application form that looked just like the ones I’d filled out before,” says Cody. “We were getting everything to him as fast as we could, and within 15 minutes we had been approved. We paid a bond, then he asked for 2 weeks’ rent.”
That part of the process was standard: a landlord or agent can request 4 weeks’ rent as a bond and 2 weeks’ rent in advance.3 But then the person Jaiden and Cody were liaising with asked for another 2 weeks’ rent, and they just knew. “That’s when everything crumbled right before our eyes,” says Cody.
“It’s really disheartening to work for 12 months on saving, then have it all crumble.” Says Cody. They not only lost all their savings but had also put a hold on a cute kitten they had planned to pick up and take to their dream apartment. “We had to move in with housemates, and while it wasn’t what we wanted, we’re happy, and that’s all that matters,” adds Jaiden.
Cody and Jaiden have been focused on ensuring it doesn’t happen again while rebuilding their savings. They’re also focusing on future experiences, such as saving to take Cody’s grandmother on her dream trip to New Zealand.
CommBank personal finance expert Jess Irvine isn’t surprised that scams are on the rise, warning: “Scammers are getting smarter and using emerging technologies to target people at vulnerable moments.” Here’s what she wants you to know:
There’s no need to feel embarrassed if you fall victim to a scam. “Scammers know there’s a housing shortage in Australia at the moment, and that groups like first-time renters, international students and older Australians are especially vulnerable,” says Jess.
“CommBank has dedicated teams to help you and point you in the right direction for support.”
From time to time, CommBank may call about your accounts or the products and services you have with them. However, it’s important that both parties know they’re talking to the right person. Jess recommends using CallerCheck.
“If you get a call from someone claiming to be from CommBank, you can ask them to send you a confirming notification in the CommBank app. If they can’t, you know it’s not us.”
CallerCheck triggers a security message in your CommBank app and it’s the most secure way to complete the identification process.
It’s the new slip, slop, slap!
Protecting you is our top priority. For more information on cyber security, scams and fraud visit our CommBank Safe hub.
Jess Irvine, CommBank personal finance expert, is an economist and a respected journalist with nearly two decades of financial reporting experience. Her personal passion is helping people with their money.
1 Australian Competition & Consumer Commission, Targeting Scams report, 2023
2 ScamWatch, Rental scams targeting more Australians during pandemic, 21 September 2020
3 Consumer, Building and Occupational Services, Upfront entry costs – renting, 25 July 2022
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