Fraudsters tricked housing seekers into paying advance rent on fake rental contracts. Now, several women have been convicted and sentenced to prison for real estate fraud. Housing seekers who attended apartment viewings paid in advance for sublease contracts. The fraudsters systematically used false identities and fake brokers to deliberately deceive both housing seekers and landlords.
Through calculated methods and false identities, the fraudsters accessed large sums of money. They stole identities from individuals found online and used these stolen identities to contact apartment owners who had posted rental ads for subleases. Subsequently, the fraudsters sent an assistant to attend the apartment viewings. When the sublease contract was to be signed, it was done using the stolen identity.
However, the contract was never signed physically; it was completed remotely. The fraudsters then sent a fake receipt indicating that the deposit and advance rent had been transferred to the apartment owner’s account. The assistant then picked up the keys to
the property.
– The fraudsters selected identities from individuals with well-paid professions who travel frequently for work, such as pilots. This way, the apartment owner does not question the remote contact or the fact that the person wishing to sublease sends an assistant to view the apartment and pick up the keys, says Theresé Nimborg, investigator at the fraud section of the Swedish Police. Once the fraudsters gained access to the apartment, they posted ads claiming the apartment was for rent. They recruited individuals through various chat functions to act
as brokers and show the apartment to housing seekers.
– The fake brokers could arrange up to 30–40 viewings in a single day and then work to sign contracts with as many of them as possible. After the fake broker showed the apartment, everything was handled digitally.
Once the fake contracts were signed, the fraudsters convinced the victims to transfer the deposit and advance rent, says Robin Jansson Engström, lead investigator at the fraud section of the Swedish Police. The frauds were carried out in just a few days. The original apartment owner realizes they have been deceived only when the advance payment never arrives. By then, the fraudsters have already conducted apartment viewings and scammed housing seekers out of large sums of money.
– It has been time-consuming to map out all the roles and methods involved in the investigation. The fraudsters used encrypted chats, different phones, fictitious names, and hijacked others’ identities during the frauds. A key aspect of the preliminary investigation to identify the main perpetrators was the use of secret coercive measures, surveillance, and camera monitoring in a multi-family building, says Robin Jansson Engström of the Swedish Police.
How to Protect Yourself from Real Estate Fraud
- Never send money until you have received the keys to the apartment.
- Meet the person who owns the apartment and ask them to identify themselves.
- Check that the owner has permission to rent out through the housing association and that
the rental is approved there.Judgments
- A 41-year-old woman is sentenced for gross fraud and use of a false document. Penalty:
1 year and 9 months in prison. - A 39-year-old woman is sentenced for gross fraud, unauthorized use of identity, and
aiding and abetting gross fraud and use of a false document. Penalty: 1 year and 4
months in prison. - A 30-year-old woman is sentenced for gross fraud, unauthorized use of identity, and use
of a false document. Penalty: 2 years and 9 months in prison. - A 19-year-old woman is sentenced for a money laundering offense. Penalty: daily fines.
- A 35-year-old woman is sentenced for attempted gross fraud. Penalty: daily fines.
This article is written by Galaxia Wallin, working at the Swedish Police Authority member of EITHOS consortium. The Swedish police, through crime prevention, work to combat online fraud and organized crime, ensuring a safer and stronger community for all citizens