Beware! This online housing scam is doing the rounds

Scammers are using a Facebook account to prey on vulnerable residents. File Picture

Scammers are using a Facebook account to prey on vulnerable residents. File Picture

Published Sep 20, 2022

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Cape Town - The Western Cape department of human settlements has unveiled a new scam doing the rounds requesting residents to pay for government housing assistance.

According to the department, it became aware of a Facebook account: RDP House Application 2022/2023, where scammers are posing as department officials facilitating approvals of houses, keys and title deeds.

It said in the latest incident, a resident in Cape Town arrived at the department office in anticipation of the receipt of a housing opportunity.

The woman paid over R2 000 into the bank account given to her by the scammers in what they alleged would be used to process her approval letter for one of the housing projects currently underway in Mitchells Plain.

Scammers are using this social media account to swindle residents out of thousands of rands. Photo: WCG

“This particular Facebook account is but one of many online housing scams preying on vulnerable residents. Residents should be aware that no payment is required to be placed on the housing demand database (ie. waiting list), to apply for a housing subsidy, or any related government housing service,” the department said.

It also noted scams have increasingly been reported and appears on different platforms on social media which requests residents to either pay a deport or holding fee for a government house, to pay to be approved for a government housing opportunity or pay for the processing of an application.

Acting head of department, Khamiela August said it was the most vulnerable who fall victim to these scams and their money is never recovered.

“In many instances, vulnerable residents fall prey to these scams in the hope of being assisted, or bumped up on the waiting list, for a government housing opportunity. In most cases, money exchanged due to fraudulent scams is not recovered.

“The latest victim, that the Department is aware of, was scammed of over R2 000 by a certain ‘Mr Mashilo’ she met on a Facebook account. ‘Mr Mashilo’ presented himself as a Department of Human Settlements’ official and provided various fraudulent paperwork as proof that the resident will be assisted with a house.

“Residents should be aware that no government official should ask you to pay any amount of cash for government housing services,” August said.

She said residents needed to note that to be considered for a government housing opportunity, they need to be registered on the housing database of their local municipality.

Residents who want to qualify for housing subsidies need to:

Be a South African citizen or have a permanent residency permit.

Be 18 years or older.

Be married or living with a partner.

Be single or divorced and have proven financial dependants permanently living with them.

Earn a household income of R3 500 or less, before deductions.

Not be current or previous property owners.

Not have received a housing subsidy from the government before.

August explained the department has various subsidies available to assist residents earning between R3 500 and R22 000 gross monthly household income.

Enquiries regarding these options can be done at any municipal housing office.

The department of human settlements has also urged residents to be on alert for scammers requesting money involving government housing.

Residents need to know that:

No money is needed to get approval for a government housing subsidy.

No payment is needed to get onto the housing database.

The department also advised residents to make contact with its offices or any municipal housing office to verify and check social media posts or advertisements.

Residents are further encouraged to report fraudulent scams at their nearest police station.

[email protected]

IOL