RENTAL AND REAL ESTATE SCAMS

INTERNET CRIME COMPLAINT CENTER ISSUES
WARNING ABOUT RENTAL AND REAL ESTATE SCAMS

Individuals need to be cautious when posting rental properties and real estate on-line.
The Internet Crime Complaint Center (IC3) continues to receive numerous complaints from
individuals who have fallen victim to scams involving rentals of apartments and houses, as
well as postings of real estate on-line.
Rental scams occur when the victim has rental property advertised and is contacted
by an interested party. Once the rental price is agreed upon, the scammer forwards a
check for the deposit on the rental property to the victim. The check is to cover housing
expenses and is either written in excess of the amount required, with the scammer asking
for the remainder to be remitted back, or the check is written for the correct amount, but
the scammer backs out of the rental agreement and asks for a refund. Since the banks
do not usually place a hold on the funds, the victim has immediate access to them and
believes the check has cleared. In the end, the check is found to be counterfeit and the
victim is held responsible by the bank for all losses.Another type of scam involves real estate that is posted via classified advertisement
websites. The scammer duplicates postings from legitimate real estate websites and
reposts these ads, after altering them. Often, the scammers use the broker’s real name
to create a fake email, which gives the fraud more legitimacy. When the victim sends an
email inquiring about the home, she receives a response from someone claiming to be
the owner. The “owner” says he and his wife are currently on missionary work in a foreign
country and he needs to rent their home while they are away. If the victim is interested
in renting the home, she’ll be asked to send money to the owner in the foreign country.
Only later will she realize she’s been scammed.