Rental scam victims disappointed with inaction by authorities

KUALA LUMPUR (Jan 30): Rental scams in Malaysia are on the rise, but despite reports made, victims have shared that they see no tangible action to either recover their losses nor stem the criminal activities.

The police reported that such cases have jumped from 184 in 2023 to 922 in 2025, marking a surge of more than 400% in just three years, stated a local daily on Jan 12.

The scammers are increasingly preying on students and foreign renters, as fraudulent agents take advantage of online listings, and misuse Real Estate Negotiator (REN) registration numbers. 

Beware below-market rent 

A 25-year-old renter, who wishes to remain anonymous, told EdgeProp that he had been evicted, and was urgently searching for a new place early last year. He found a fully-furnished two-bedroom unit at a fairly new serviced residence along Old Klang Road. It was listed at RM1,750, with a RM6,325 deposit requirement. The rent seemed suspiciously low, but he decided to book a viewing.

The agent handed him over to an assistant, who gave only a brief walkthrough. Desperate after weeks of unsuccessful viewings, the renter paid the deposit in three installments, as instructed, and signed all legal forms. The agent promised to fix a loose fan before handing over the keys, but never followed up.

The renter realised it was a scam the day before collection. By then, the listing had been removed from the property portal, so he went straight to the police. Attempts to alert the condominium management were met with indifference—the receptionist reportedly giggled and indicated this had happened with multiple units before. Frustrated by the lack of action, the renter did not return.

Exorbitant rent hidden in fine print

Meanwhile, a lady who only wanted to be known as Katrina, 57, who had previously lived in Malaysia for 20 years, flew in from Sherborne, England. She told EdgeProp she was planning a quiet holiday, and had spent two weeks searching for a place to rent. Then, she fell victim to a scam while trying to secure a short-term stay at an upscale serviced apartment in Bukit Bintang. 

The unit was advertised on a rental portal at RM700, but the agent she eventually met demanded RM2,000, a condition buried in the fine print of the contract.

Fearing she would be left without accommodation, she reluctantly paid the RM2,000, documenting the cash payment as evidence. Even then, she was made to wait for two hours in the lobby, and had to engage in prolonged arguments before being handed the key.

Katrina was of the view that she eventually got to occupy the unit only because she had photo proofs of the “agent” and transaction. She also noted that online reviews indicated some renters never received a key. 

After making a fuss, she also managed to recover her RM300 deposit. The apartment management was unsurprised by the incident, stating that such cases occurred frequently, and no further action was taken.

He was the 15th victim by same scammer in same apartment

Another victim, Hisham Lee, a 25-year-old content creator from Sarawak, suffered greater loss. He told EdgeProp that in November 2024, shortly after moving to Kuala Lumpur, he had attempted to rent a room at a condo in Bangsar, located opposite the Universiti LRT station. 

The scammer, posing as the apartment management, and using someone else’s photo and seemingly legitimate documents, convinced Hisham to transfer money multiple times. The room rental had been advertised at RM600, and the deposit was included in the total paid. 

Unfamiliar with the importance of REN registration, he lost a total of RM1,500 in payments, and incurred an additional RM1,200 staying temporarily in an Airbnb, bringing the total loss to RM2,700. 

Despite filing a police report, Hisham found authorities largely unhelpful. In fact, the apartment management revealed he was likely the 15th person targeted by the same scammer, and even with insider support to escalate the report, no meaningful action was taken.

As at the time of writing, the scammer’s bank transactions remained undetected, highlighting ongoing gaps in enforcement. After Hisham’s case went viral, he was approached by multiple others who had fallen victim to the same scam.

Property agent’s identity misused

Fraudsters are increasingly sophisticated, often leveraging well-known rental websites to make listings appear legitimate, and targeting foreigners who may be unfamiliar with local rental procedures. Fake REN numbers allow scammers to pose as licensed agents, creating a veneer of authenticity.

A real estate negotiator active on social media platforms such as TikTok and YouTube reported that a Facebook video with her name, Izzy Ricco, along with her photo and contact number were misused in a scam involving a duplex in Banting, Selangor.

According to her, the purported owner approached her for assistance in finding a buyer, without disclosing that the property was already under auction, and tied to a loan issue. She was listed as a guarantor without her knowledge, even though she acted solely as an intermediary. 

The listing also claimed the property had multiple repair issues, but the owner allegedly attempted to raise the price, and rejected some buyers’ lower offers. Upon realising the situation was a scam, Ricco filed a police report, and advised the public to exercise caution when engaging in property transactions.

Online platforms unwitting facilitators

These scams impose both financial and emotional costs, with victims losing deposits while their personal information may be repeatedly misused.

Besides that, some digital platforms may unintentionally facilitate scams when listings are posted without thorough verification, creating opportunities for fraudsters.

This highlights a clear need for heightened vigilance. Renters are advised to verify the legitimacy of agents, confirm property ownership and documentation, and avoid rushing into payments. Partnerships between universities, student bodies, and rental platforms could also help raise awareness, and provide guidance for vulnerable renters.

The rise of identity-based rental fraud underscores the need for stronger verification systems for both agents and listings. 

Short-term measures, such as pre-leasing guidance, and verified property listings, may reduce risks, while long-term solutions require coordinated action from regulators, platforms, and landlords.

Steps to reduce the risk of rental scams

Prospective tenants are advised to verify that a property exists and that its condition, location and features correspond with the information provided in the listing. An in-person viewing is recommended, or at minimum, a live video walkthrough to confirm that the unit is genuine and currently available.

When dealing with an agent or landlord, tenants should confirm the individual’s identity, and where applicable, verify registration details with the relevant regulatory authority. Requests for payment made under names that do not match official or authorised documentation should be treated with caution.

Deposits or booking fees should not be paid before the property has been viewed, ownership or authority to lease has been established, and proper documentation has been provided. Pressure to make immediate payment may be a red flag.

Payments should be made through traceable channels such as bank transfers. Cash payments or transfers to unrelated third parties may increase exposure to fraud.

A legitimate rental arrangement should be supported by a written tenancy agreement that clearly outlines rental terms, duration, and obligations. All details should be carefully reviewed before signing or making any payments.

Tenants are also encouraged to be cautious of rental offers that are significantly below prevailing market rates. Comparing similar listings within the same area can help determine whether an offer is reasonable.

Finally, access to the property and key handover arrangements should be clearly established, with keys released only after the tenancy agreement has been finalised, and all agreed conditions have been met.

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