Rental Rip-offs Spike; Real estate fraud losses near $400M, FBI reports
Rental home scammers took more than $396 million from unsuspecting victims in 2022, according to the Federal Bureau of Investigation.
Last year, more than 11,700 people were taken for the losses in real estate scams compared with $213 million in 2020, according to the FBI Internet Crime Complaint Center. The number of victims decreased 14 percent from 2020, but the financial losses ballooned by 86 percent.
Brian Bean, broker and owner of Dream Big Property Management in Riverside, Calif., said they frequently find fake ads on their rental listings posted on such online sites as Craigslist, Facebook Marketplace, and Zumper.
“Whenever we have a home listed, we have to place fliers in the window to warn people about potential scams,” Bean said. “They let people know who the property management company is, our phone and email, and the fact that we don’t ask for or accept PayPal, Zelle, Western Union, or even Bitcoin. It’s sad that these scammers prey on people who are least able to afford losing that money.”
He added that one of the best strategies to avoid scams is to work with a property management company.
Last year, common scams included conning people into send large sums of money via PayPal or ATMs that convert cash to Bitcoin. This year, scammers are mostly taking credit check fees from many more people — sums from $50 to $100 per person — because the amount is easier to pry out of renters desperate to find a home in an environment with very few available listings.
Signs of a rental scam include:
- The landlord or agent will not meet you in person.
- The home doesn’t show up on any other online public records as available for lease.
- The contact requires that you make payment via wire transfer or Bitcoin.
- The price is far less than comparable rentals in the area.
- The landlord’s reasoning for the low rent is that they have relocated for a job out of state and they just want someone trustworthy to look after their home.
“If it seems too good to be true, it is,” Bean said. “Don’t fall for it.”
If you think you might be looking at a fraudulent rental listing, you can reach Dream Big Property Management at 951-778-9700 for assistance.