Scams for Rent

Price, location, and amenities are all selling points when searching for a place to rent. However, scammers know that also, and they are making up fake rental listings they know will grab attention, and money, before they discover there is not really a place waiting for these interested buyers. Before making that move, learn how to spot and avoid fake rental ads.
The Federal Trade Commission recently detailed a breakdown of how rental scams happen in their consumer.ftc.gov article, “Rental Listing Scams,” They report this crime happens in one of two ways:

Listing Spoofs

Scammers take over real rental listings and make them their own. They copy the pictures, descriptions, or virtual tours from a real online rental listing, replace the agent’s contact information with their own, and then post the phony ads on a new site. So, if a victim calls or email about the rental, they’ll reach a scammer.
What happens next? The scammer will do one or more of the following:
  • The scammer might try to pocket money with a supposed application fee, deposit, first month’s rent, or vacation rental charge.
  • The scammer might ask a person to complete an application with information like their Social Security number, a driver’s license picture, paystubs, and other personal details. Then they might use this information to steal identity.
  • The scammer might message a person to prove they’re creditworthy by sending screenshots of your credit scores. What they really want is to get victims to enroll in a paid credit monitoring program with recurring fees.
Once the scammer gets the money or personal information, they disappear and the victim is left with no place to move in to.
What to do: Search online for the rental location’s address along with the name of the property owner or rental company. If other ads come up for the same address, but with a different owner or rental company name, that’s a sign of a scam. Go to the rental company’s own website to see if the property is listed there, too. If it isn’t, the ad found in question may be a scam.

Totally Fake Listings

Scammers create listings for places that aren’t for rent or don’t exist. Fake ads might offer surprisingly low rent or amazing amenities. But when you ask to see the rental, the fake owner will usually claim to be out of the country or give another excuse for not showing the property, then rush a person into making a quick decision.
The fake owner might tell them they can only secure the property with a wire transfer through Western Union or MoneyGram, gift cards, or cryptocurrency to pay for an application fee, deposit, or first month’s rent. But after they pay, the person they’ve been dealing with will disappear with their money.
What to do: If anyone pressures a person to decide quickly, it is recommended they should walk away. And if they find the home listed for sale instead of for rent, then that’s also a big red flag.  Additionally, realize that sending money by wire transfer, gift card, or cryptocurrency, is like sending cash. Once it’s gone, you probably can’t get it back.
How To Tell If Rental Listing Is Real
  • Search online for the name of the property owner or rental company with the words “complaint,” “review,” or “scam.” See what other people say about their experiences.
  • Consider the price of the rental. If the rent is a lot cheaper than most rents in the area, it could be a sign of a scam. And if anyone pressures to decide quickly to get a great deal, walk away.
  • Whenever possible, look at the property before signing or paying. Visit the property in person, have a friend or someone already trusted and known visit it, or watch a video or virtual tour. However, that’s still not a guarantee that a property is real or available for rent. While rental scammers generally won’t meet with victims in person, they may set them up with a self-guided tour to help convince a person they’re legit by copying listings from landlords who use self-tour services. So, dig a little deeper:
    • When visiting in person, ask the rental agent for a business card issued by the company that owns or manages the property. Then check the agent’s ID to be sure it matches the records.
    • Dealing with a private landlord? Search city or county tax assessment websites to learn who owns a property, then check the landlord’s ID to be sure it matches the records.
    • If booking a vacation rental, get a copy of the contract before sending any deposit money. Check that the address of the property really exists. And if the property is in a resort, call the front desk and confirm the location of the property and other details on the contract.
Protect Your Personal Information and Money
  • Never give personal or financial information to anyone who contacts and claims to be working with the owner or rental company. Instead, use the contact information you already have to get in touch with the owner or company.
  • Guard personal information throughout the rental process. Until one has agreed to rent a place, a landlord doesn’t need their Social Security number, credit score, or other sensitive information. And most landlords normally pull your credit score themselves, they don’t tell you to get it for them.
  • Listen to how they instruct to pay. If anyone insists they can only pay with wire transfers through Western Union or MoneyGram, gift cards, or cryptocurrency, it’s a scam. Wiring money, sending gift cards, or paying by cryptocurrency is the same as sending cash, once sent, it probably can’t be gotten back.
Report Problems
If one notices a rental listing scam, they may report it to their local law enforcement agency and the website where the ad was posted. And report it to the FTC at ReportFraud.ftc.gov and their state attorney general

Back