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Real Estate Fraud

Real Estate Fraud

Rental Scams

Fraudulent rental listings often seem too good to be true, using eye-catching deals, appealing photos, and convincing descriptions to attract unsuspecting renters. This fraud occurs throughout the year but is more prevalent during tax season when consumers might expect a tax refund.

How it Works

Scammers commonly use the following tactics:

  1. Copying Real Listings: They steal property details and images from legitimate listings, then repost them with their own contact information on websites such as Craigslist and Facebook Marketplace.
  2. Demanding Upfront Fees: These fraudsters require deposits or application fees before allowing prospective tenants to see the property.
  3. Avoiding In-Person Meetings: Many scammers insist on communicating only online, often claiming to be out of town or otherwise unavailable.
  4. Falsely Claiming Ownership: Some fraudsters pose as property owners, offering unusually low rental prices to create urgency and pressure quick payments.

Protect Yourself

  1. Confirm Property Details: Look up the rental property's address online along with the name of the landlord or rental company. If you find multiple listings for the same address but with different owners or companies, it could be a red flag for a scam.
  2. Research Market Rates: Familiarize yourself with typical rental prices in the area—if a deal seems unrealistically low, it’s likely a scam.
  3. You're Asked to Send Money via Untraceable Methods – If someone requests payment through a wire transfer, payment app, gift card, or cryptocurrency, be cautious. Once sent, these funds are nearly impossible to recover. Scammers often insist on these less common payment methods to collect security deposits or rent, knowing that victims have little recourse to get their money back.

Report the Fraud

If you are a victim of a rental scam, here are some avenues for reporting rental scams:

  1. Contact the platform hosting the scam listing
  2. Notify local law enforcement
  3. File a complaint with the FBI's Internet Crime Complaint Center at https://www.ic3.gov/
  4. Report it to the Federal Trade Commission at ReportFraud.ftc.gov

Raise Awareness

Share UPSTAR's Public Service Announcement about avoiding rental scams: