In January 2026, Malaysia’s Commercial Crime Investigation Department (CCID) revealed a number that should stop anyone hunting for a place to rent: reported property rental scam cases jumped from 184 in 2023 to 922 in 2025 — a surge of more than 400 per cent in just three years.
Losses climbed just as fast. Victims lost RM396,246.55 in 2023. By 2024, that figure had more than doubled to RM835,367.71. In 2025, it escalated to roughly RM2.5 million.
Many of these victims paid a deposit for a property that never existed.
This is the same question that keeps coming up whenever a scam like this makes the news:
“Why did I never check this before I paid?”
How the Rental Scam Works
CCID director Datuk Rusdi Mohd Isa described a pattern built specifically to avoid scrutiny.
Step 1: Contact through messaging apps, not listings platforms. Fraudsters reach victims through WhatsApp, Telegram, and social media direct messages rather than verified listing sites.
Step 2: Urgency and pressure. Victims are pressured to make advance payments or deposits quickly, often citing a limited number of available units.
Step 3: No viewings, ever. The scammers avoid physical meetings or property viewings, always with an excuse.
Step 4: Rapid identity switching. Police have detected scammers frequently changing phone numbers and bank accounts, using temporary social media accounts, and rotating mule accounts specifically to dodge detection. Automated chatbot-style scripts and short voice or video clips are also used to make the interaction feel more credible.
By the time a victim realises the unit does not exist, the account that received the deposit has often already been abandoned.
Why “It Looked Real” Isn’t Good Enough Anymore
This scam is built to survive a casual gut check. A convincing photo, a quick voice note, a professional-sounding message — none of it requires the fraudster to ever show up in person or let the property be viewed.
What it cannot survive is verification of the things that actually matter: whether the person is a registered property agent, whether the unit and its ownership can be independently confirmed, and whether the account receiving the deposit belongs to a real, traceable party.
This is the same gap that a proper tenant background check and counterparty verification process is built to close — just applied from the renter’s side of the transaction.
What Renters Should Verify Before Paying Any Deposit
Based on CCID’s advisory, prospective tenants should:
- Deal only with registered property agents (check REN registration where applicable), not unverified individuals contacted via social media.
- Insist on a physical or verified live video viewing before paying anything — treat refusal as a red flag, not an inconvenience.
- Verify the property’s ownership or the agent’s authorisation to lease it.
- Check the receiving bank account and phone number through the Semak Mule portal before transferring funds.
- Be sceptical of “limited units” urgency and unusually attractive rental rates.
- Keep all correspondence and payment records, and report suspected scams to police immediately.
It Works Both Ways: Landlords Need to Screen Tenants Too
The rental market carries risk in both directions. While renters can be scammed by fake landlords, real landlords face their own exposure from tenants who are not who they claim to be.
A proper tenant background check helps landlords reduce risks such as:
- Unpaid rent and prolonged eviction disputes
- Property damage beyond the deposit’s coverage
- Unauthorised subletting
- Identity misrepresentation, particularly relevant given how easily stolen identities are now being used in rental fraud
- Legal disputes that drag on for months
The same principle applies on both sides of the lease: verify before you commit, not after the keys change hands.
Why This Keeps Happening
Rental decisions are often made under time pressure — a lease expiring, a move-in date approaching, a “good deal” that seems unlikely to last. Scammers exploit exactly that urgency, using fast-moving messaging apps instead of platforms with any accountability built in.
CCID has noted that syndicates are exploiting the wide reach and low cost of social media and messaging apps, along with the difficulty of tracking rotating mule accounts, to stay ahead of enforcement. Verification, not urgency, has to drive the decision to pay.
How Verity Intelligence Helps
Verity Intelligence supports individuals and organisations in verifying counterparties before money or property access changes hands.
Verity Individual Checks helps renters and landlords conduct one-off verification — confirming an agent’s registration, checking a counterparty’s background, or verifying an account before a deposit is paid.
VERISafe provides instant screening against risk databases, including watchlists and adverse media, for faster verification decisions.
Verity BGC supports landlords, property managers, and businesses that need more comprehensive tenant or vendor screening, including identity, litigation, and regulatory checks.
Whether you are renting a home or leasing one out, verifying the other party before committing is the step that protects you.
Conclusion
Malaysia’s rental scam numbers — a 400 per cent rise in three years and RM2.5 million lost in 2025 alone — show how effectively fraudsters have adapted to the speed of messaging apps and social media.
The properties looked real. The agents sounded convincing. What was missing, in nearly every case, was independent verification before any money was sent.
Trust is important, but trust should be supported by verification.
FAQ
How much have Malaysians lost to rental scams?
Losses rose from RM396,246.55 in 2023 to roughly RM2.5 million in 2025, as reported cases surged from 184 to 922 over the same period, according to CCID.
How do I know if a rental listing is a scam?
Warning signs include contact only through WhatsApp or Telegram, pressure to pay a deposit quickly, refusal to allow a physical or live video viewing, and unusually attractive pricing with “limited units” urgency.
What should I check before paying a rental deposit?
Verify the agent’s registration, confirm the property’s ownership or the agent’s authorisation to lease it, and check the receiving bank account and phone number through the Semak Mule portal.
Do landlords need to background check tenants too?
Yes. A tenant background check helps landlords avoid risks such as unpaid rent, property damage, unauthorised subletting, and identity misrepresentation.
Is tenant screening only relevant after a bad rental experience?
No. Its value is in prevention — verifying a tenant or landlord before the lease is signed or the deposit is paid, not after a dispute or loss occurs.
