An analysis by the Federal Trade Commission (FTC) shows that, since 2020, consumers have been swindled out of $65 million by rental scams. This statistic is particularly relevant during the holiday season when many people are traveling and renting places to stay.
According to the FTC, most of the scams involve fake rental listings on Facebook or Craigslist. The listings look real and copy information from legitimate listings like Air BnB and VRBO. Interestingly, “people ages 18 to 29 were three times more likely than other adults to report losing money to a rental scam.”
The scammers are able to swindle the victims by:
- pressuring consumers to provide money upfront before seeing the rental property in person;
- pushing consumers to prove they are creditworthy by sending screenshots of their credit scores. They send consumers affiliate links to websites to sign up for a credit check for little cost, but this may enroll the consumer in a paid membership with recurring fees; and
- collecting personal information from consumers such as their Social Security number, driver’s license or paystubs to steal their identity.
Tips to avoid being scammed include:
- search for the rental address online to see if the same property is listed with different prices, contact information, or is listed as being for sale;
- avoid sharing personal information, particularly Social Security number, passport number or driver’s license number;
- avoid sharing banking information that allows direct access to your bank account;
- avoid providing financial information until they have agreed to rent a property and use a credit card;
- avoid paying the full amount for the rental up front; and
- check out typical rents paid in the area. If the advertised rent of a listing is much cheaper than rents for similar rentals in the same area, that could be a sign of a scam and a red flag.
Safe travels over the holidays and stay vigilant to avoid a rental scam.