Two Indian-born men are wanted by Canadian authorities for a fake apartment rental scam that allegedly defrauded victims of over CAD 30,000 (over ₹2.6 million) in Mississauga, Ontario, investigators said.
Police said the suspects had used social media advertisements and fake rental arrangements and advance electronic payments to tell prospective tenants they had secured genuine apartments. The case is still being investigated and the suspects have not been convicted in the case.
Investigators believe that the alleged scheme started with attractive ads for apartment rental on social media. They said people who are looking for housing in Mississauga saw the properties advertised and saw them as available for rent. Then prospective tenants were encouraged to view the apartments before they made payment. Police say these property viewings were a key part of the alleged scheme because they helped to sell the rental offers as legitimate.
The suspects presented themselves as current tenants or authorised representatives of the properties during the viewings, investigators say. By presenting prospective renters with a real apartment, they gained confidence from those looking for accommodation.
After viewing, victims were encouraged to make rental agreements online and put up advance deposits to secure the properties, investigators claim.
Most of the alleged victims transferred money electronically. According to police, the suspects asked for advance payments through electronic fund transfers after prospective tenants signed rental agreements. The transactions appeared to make victims feel they had secured their new homes, but after the move-in dates were set, the victims discovered they could not gain possession of the apartments.
Police said victims would no longer be able to contact the individuals who had presented themselves as landlords or authorised representatives. The landlords’ disappearance apparently left victims without access to the properties after they had already transferred their deposits. So far investigators have identified at least eight victims and their combined loss has been more than CAD 30,000.
The number of victims might increase as the investigation continues, said authorities. Rental scams carried out through social media can affect multiple people in a relatively short period because advertisements can be shared widely and prospective tenants may feel pressure to make quick decisions in competitive housing markets. Therefore police are investigating whether other people were targeted with similar advertisements.
One of the most significant findings in the investigation was the apartment used to view the property. Investigators discovered the suspects rented the apartment through an online short-term rental platform.
Police say the property was then used to make the fraudulent rental offers appear legitimate. The suspects were given access to a real apartment for viewing so they could convince potential tenants that they were dealing with legitimate property representatives.
The actual owners of the apartment that was used for the viewings, police said, are not suspects. No property owners are believed to have been involved in the alleged fraud, said officials.
Canadian authorities have issued arrest warrants for two men, 23-year-old Jashanpreet Sidhu from Saskatoon and 24-year-old Priyanshu Goel of Surrey, British Columbia. Police say Sidhu is wanted on fraud over CAD 5,000 and possession of property obtained by crime charges. Goel is wanted on fraud over CAD 5,000.
The case is indicative of the huge risks of online rental advertisements - when prospective tenants are asked to transfer money before independently confirming the ownership or management of a property.
People are more and more using social media to search for rental accommodation online and there is always no guarantee that a property offered by a person can be rented out if they post a property online.
Police have advised prospective tenants to conduct thorough checks before making deposits. That includes independently checking the identity of the property owner or authorised rental agent, checking if the apartment is actually available and that the person who wants to make payment has the right to make a rental agreement. People should also not rely on online conversations or photographs and documents from a prospective landlord, authorities say.
Another important aspect of the case is the alleged use of electronic fund transfers. Digital payments can be fast, easy and convenient but victims may not be able to recover money once it has been sent to a fraudster’s account. New tenants should be taught the payment process and verify the recipient before sending large deposits.
Rental fraud has a high cost due to the fact that victims may lose money and accommodation. People who believe they have secured a new home may also make additional arrangements involving moving, employment, transportation and other expenses. Discovering that the property is unavailable after transferring a deposit can therefore create significant financial and personal difficulties.
The investigation also illustrates how criminals can allegedly use legitimate services to make fraudulent schemes appear authentic. In this case, police believe the suspects rented a property through a legitimate short-term rental platform and used it as part of their deception. Such tactics can make it more difficult for prospective tenants to identify fraudulent rental offers based only on an in-person viewing.
The police continue to investigate the case and are seeking information that can help track the two wanted men. A similar rental scam may have been reported by others at the time, police said. Additional reports may also help investigators know if the alleged scheme involved more victims or properties than currently identified.
When people are looking to rent in Ontario and elsewhere in Canada, the case serves as a reminder to be cautious when responding to online rental ads and to be wary of attractive prices, urgent payment requests and landlords who prefer to conduct all communication online. Even if a property is presented as a real estate for sale to a prospective tenant, the location and ownership of the property must be verified.
The alleged Mississauga rental scam is at an active stage. The charges against Jashanpreet Sidhu and Priyanshu Goel are allegations and the Canadian legal system holds that both suspects are innocent unless proven guilty.
Further investigations into the case’s financial records, rental arrangements and communications may reveal whether additional victims or additional charges are involved. The case proves the need for caution in an ever-more digital rental market. In real estate, the real estate agent and landlord can be verified, and you need to review rental agreements before you transfer your money so you don’t get the clients to become victims of online accommodation fraud.
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