A fraudulent advert was posted on the website claiming to offer rented accommodation at Forbes Quay, Dublin 2, and Stewart's Hall, Dublin 1, for well below market prices.

Upon enquiry, potential tenants were told that the apartments were owned by a Chinese businessman named Yin Tao, who lived in Madrid.

A person claiming to be Tao said he would not be coming to Ireland to host viewings, but potential tenants could put the money required into a holding account until they chose to rent.

"I will require payment (send to daft. ie) of first month rent plus deposit, which means Euro2,400, " he wrote in an email to one potential tenant. "Daft. ie will hold the money until you inspect the apartment and send them your confirmation that you wish to rent. I am sick of tirekickers, people who are just looking around and not serious about renting."

Following enquiries, Daft issued a warning this week, advising that the advert was fraudulent and the person responsible had been identified. "We have deactivated this ad and banned the advertiser from the site, " they said in their warning.

"We are now in the process of sending out a fraud alert to everyone who contacted this advertiser. Thankfully, this advert and the person responsible for it have been traced and we are currently liaising with the relevant international authorities to ensure that this advertiser is held accountable."

Daft, set up by Dublin brothers Brian and Eamonn Farrell, is one of Ireland's internet success stories, with over one million visits per month and in excess of 35,000 properties on the site at any one time.

This is not the first time that Daft users have been subjected to a scam. Last April, up to 30 people were conned out of an estimated Euro35,000 after viewing an apartment in Ballsbridge that had been posted on the website. At the time, the company said they would consider starting a bond authority scheme in which the tenant would pay the booking deposit directly to the company.

"We urge users to never send or pay money without seeing identification and the property itself first, " a spokesman said.