Citizens Advice warns tenants of fraudulent money transfers

15 February 2010 9:24 am | By Tracey Scott

The CAB is reporting cases of people falling victim to a scam where landlords ask prospective tenants to to prove they can afford deposit and rental payments by making a money transfer.

Tenants are being asked to make a secure transfer to a trusted person and then fax a copy of the receipt to prove their funds. But when the would-be tenants go to collect the money the money has already been withdrawn and the room or property doesn’t exist.

The charity is now advising that people looking for property should never share their money transfer number or copy of the receipt, never part with any money before you have viewed the room or property in person and never agree to transfer money to prove you can afford deposit and rental payments.

CAB advice consumer affairs policy officer Susan Marks says: “Money transfer, used in any situation other than to send money to someone you know, is not secure. It should never be used as a way of proving funds or as a method of payment to someone you don’t know - sharing your money transfer number or copy of your transfer receipt is like handing over your pin number to a stranger.

“Consumers must be warned about the dangers and we want to work with money transfer companies to help them to tackle the misuse of their services and thwart fraudsters.”

If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing