FDIC-Insured - Backed by the full faith and credit of the U.S. GovernmentRental Scams Are Costing Americans Millions, How to Protect Yourself While Searching for a Home
Finding the right rental can already be stressful, especially in a competitive housing market. Unfortunately, scammers are making it even harder by targeting people searching for apartments and homes online. According to new data from the Federal Trade Commission (FTC), rental scams have resulted in about $65 million in reported losses since 2020, and the real impact is likely much higher because many scams go unreported.
As demand for affordable housing continues to rise, fraudsters are taking advantage of renters by posting fake listings that look legitimate, pressure victims to pay upfront, or steal personal information. Understanding how these scams work, and knowing how to spot red flags, can help you avoid becoming a victim.
How Rental Scams Typically Work
Rental scams often begin with fake listings that appear convincing and well‑priced. Scammers may copy photos and descriptions from real listings, then repost them with their own contact information on other websites or social media platforms.
In many cases, the property being advertised isn’t actually for rent at all, it may be for sale, already occupied, or entirely fictitious. Once a renter responds, the scammer moves quickly to build urgency and extract money or personal data.
Common Rental Scam Tactics to Watch For
The reports show that rental scams tend to follow a few familiar patterns. Being aware of these tactics can help you spot trouble early:
- Pressure to Pay Upfront – Scammers often demand application fees, security deposits, or first month’s rent before you’ve seen the property in person. They may claim the payment is needed to “hold” the rental because there is high interest.
- Fake Credit Check Requests – Some scammers ask renters to prove they are creditworthy by sending screenshots of credit scores or by clicking links to “low‑cost” credit check websites. These sites can enroll you in recurring paid memberships or generate profits for the scammer through affiliate links.
- Identity Theft Through Fake Applications – Fraudsters may request sensitive information, such as Social Security numbers, driver’s license photos, or pay stubs, under the guise of a rental application. This information can then be used for identity theft or sold to other criminals.
- Refusal to Meet in Person – A major red flag is a landlord who won’t meet you or show the property in person. Some scammers attempt to sound legitimate by offering self‑guided tours using copied lockbox instructions from real landlords, but this is often a cover for fraud.
Where Rental Scams Most Often Start
While rental scams appear across many websites, social media has become the biggest source. In the 12 months ending June 2025, about half of reported rental scams started with fake ads on Facebook, followed by platforms like Craigslist.
Because these platforms allow fast, high‑volume posting, scammers can quickly reach large numbers of potential renters and disappear just as fast.
Who Is Most at Risk?
Rental scams can happen to anyone, but young adults are especially vulnerable. New data shows that people ages 18 to 29 were three times more likely than other age groups to report losing money to a rental scam.
Younger renters are more likely to search for housing online, relocate frequently for work or school, and face tight budgets, all factors scammers exploit.
How to Protect Yourself From Rental Scams
While scams are becoming more sophisticated, there are several steps you can take to reduce your risk:
- Research the property address online. Look to see if the same property appears with different prices or contact information, or if it’s listed as “for sale” instead of for rent
- Be cautious of prices that seem too good to be true. Below‑market rent is a common lure used by scammers.
- Never send money before seeing a rental in person. Legitimate landlords don’t demand upfront payment before a showing.
- Avoid sharing personal information too early. Don’t provide sensitive documents until you’ve verified the landlord and agreed to rent the property.
- Be skeptical of pressure tactics. Scammers rush you to act quickly so you don’t have time to verify details.
Honest property owners will give you time to ask questions, review lease terms, and confirm details without pressure.
What to Do If You Spot or Experience a Rental Scam
If you think you’ve encountered a rental scam, or if you’ve already lost money, report it as soon as possible at ReportFraud.ftc.gov. Reports help authorities track trends, warn other consumers, and take action against fraudsters.
Staying Informed Helps You Stay Protected
Rental scams continue to grow as more people search for housing online, but knowledge is one of your strongest defenses. By staying alert to common scam tactics and taking time to verify listings and landlords, you can protect your finances and personal information during your home search.
For more consumer safety information and resources, visit ftc.gov/scams.