The Ministry of Consumer Affairs is warning students hunting for flats online to beware of bogus advertisements.
Overseas scammers have been posting photographs of legitimate rental properties on well-known rental websites and trying to lure people with very cheap rent, it says.
A spokesperson for the ministry, Richard Parlett, says typically, the landlord claims to be living in London and asks for the bond money to be wired over.
Mr Parlett says seven people have reported the scam so far this year, but no one lost their money because they knew the warning signs.
"Never, ever send money overseas unless you know and trust the person completely. Don't take a proxy unless you've viewed it in person, with the owner or the agent.
"Use your common sense and do some research on the market. If something doesn't feel right, then it's going to be a scam."
British police have been alerted.
