Beware of Property Rental Scams
Navigating the rental market can be challenging, and the increasing prevalence of property rental scams only makes it more difficult. These fraudulent schemes can lead to significant financial loss and emotional distress for unsuspecting would-be renters. The best way to avoid falling victim to one of these scams is to understand the tactics used by fraudsters and learn how to protect yourself in case you’re targeted by one of these ruses. Here’s what you need to know and how to stay safe.
Common rental scams
Rental scams can play out in several ways. Here are some of the more common varieties:
Bogus listings. Here, scammers create advertisements for properties that either don’t exist or aren’t available for rent. These listings often feature attractive photos and below-market rental rates to lure potential tenants. Once contacted, the scammer will invent a reason for not being able to show the property in person and pressure the victim into sending them money for deposits or fees.
Payment redirection. In this scheme, fraudsters impersonate legitimate landlords or property managers and instruct aspiring tenants to redirect rental payments to their accounts. This usually involves hacking into email accounts or creating spoofed email addresses that closely resemble those of legitimate entities.
Overpayment scams. In this variation, scammers pose as prospective tenants and send a check or money order for more than the required amount, asking the landlord to refund the excess. The original payment later bounces, leaving the landlord out of pocket for the refunded amount.
Red flags
Watch out for these red flags, which can alert you to a possible rental scam:
Unusually low rent. If a rental rate seems too good to be true, it probably is. A favorite trick of scammers is to use enticingly low prices to attract victims.
Pressure to act quickly. If you’re urged to make immediate decisions or payments without sufficient time to consider the offer, proceed with caution.
Requests for unconventional payment methods. Demands for payment via wire transfers, gift cards or cryptocurrency are common tactics used by scammers, as these methods are hard or impossible to trace and recover.
Lack of proper documentation. If the landlord or agent cannot provide a lease agreement or avoids answering questions about the property’s ownership and management, consider it a red flag.
How to protect yourself
Verify the listing. Conduct a reverse image search of the property’s photos to ensure they haven’t been copied from other listings. Also, cross-reference the listing on multiple platforms to check for inconsistencies.
Visit the property. Always insist on viewing the property in person or through a live virtual tour. Scammers often avoid in-person meetings or provide excuses for not being able to show the property.
Research the landlord or property manager. Look up the individual’s or company’s credentials, read reviews and verify their association with the property. Legitimate landlords and property managers will have a verifiable track record.
Avoid upfront payments. Never send money before signing a lease agreement and confirming the legitimacy of the rental offer. Be especially wary of requests for payment before you’ve seen the property.
If you’re targeted
If you believe you’ve fallen victim to a property rental scam, be sure to alert us. As your credit union, it’s important that you let us know about the scam as soon as possible so we can halt or reverse unauthorized transactions. Next, file a complaint with local law enforcement and report the incident to agencies, like the Federal Trade Commission (FTC) and the Internet Crime Complaint Center (IC3). Finally, if the scam occurred through an online listing platform, report the fraudulent listing to the company to prevent others from falling victim.
Staying vigilant and informed is your best defense against rental scams. By recognizing the warning signs and taking proactive steps, you can protect yourself and ensure a safe rental experience. Stay alert and stay safe!