Real estate scams still lurk on Craigslist

Americans continue to fall prey to a growing number of rental scams – targeting renters and landlords alike – and giving rise to new warnings, especially for those using the free classified ad site Craigslist.

Consumers in search of an apartment or house to rent often rely on online rental listings in order to find the right place, especially if they’re looking in another city or state.

Unfortunately, scammers are taking advantage. Some make up phony listings and try to lure renters with the promise of extra-low rent. They ask potential renters to send money before they see the apartment or sign a lease.

A recent case in the news from Lynchburg, Va., has reminded Americans that these scams are still prevalent. A couple who responded to an ad on Craigslist to rent a vacant home in the area thought they’d found a vacant home and planned to rent it from the listing’s host. The landlord claimed in the ad that he was away on a “humanitarian mission,” and needed to rent the property. Convinced the story was true, the couple wired a requested $1,000 fee to the renter, received the keys, and then moved into the empty house.

Two days later, police officers showed up at the home demanding that they leave. While the home was legitimately listed for rent on the market, the party that advertised the rental on Craigslist was not the rightful landlord. The police informed the couple that the scammer had broken into the home and posed as the rightful owner only to make off with their deposit.

And it’s not just renters getting scammed – landlords appear at risk, too. In another recent incident, Georgia resident Robert Fulton claimed that he was scammed out of $2,200 by a pair of prospective renters after he’d posted an ad on Craigslist to lease out his empty basement.

The pair reportedly sent him a $3,500 check as an advance on the rent and then asked him for a favor. Fulton claims they requested he send the $2,200 they had “overpaid” him to an acquaintance of theirs to help “cover moving expenses.” Though Fulton says he had his suspicions, he went through with the transaction as the first check appeared to have cleared.

A few weeks later, he received an email from the bank stating the check was no good. Fulton told his local television station that after he’d called the scammers about their ploy, they propositioned him to join them in making counterfeit checks, just like the one they’d allegedly used to rip him off in the first place.

Craigslist advises renters of the following red flags to look out for:

• Deal locally with those you can meet in person: Follow this one simple rule and you will avoid 99 percent of the scam attempts on Craigslist.
• Never wire funds via Western Union, Money Gram or any other wire service: Anyone who asks you to do so is a scammer.
• Fake cashier checks and money orders are common: Banks will cash them and hold you responsible when the fake is discovered weeks later.
• Craigslist is not involved in any transactions: Craigslist does not handle payments, guarantee transactions, provide escrow services, or offer “buyer protection” or “seller certification.”
• Never give out financial information: Bank account numbers, social security numbers, eBay/PayPal info, etc.
• Avoid deals involving shipping or escrow services: Know that only a scammer will “guarantee” your transaction.