As if life is not stressful enough during this global health crisis, now rental fraud numbers seem to be on the rise. The logic of why this is happening is fairly simple. When money is scarce, the prevalence of fraud and identity theft increases. The mere fact that millions of Americans are out of work and struggling to make ends meet is enough to cause this alarming statistic to grow.
What is Rental Fraud?
According to the Federal Trade Commission, “Rental fraud occurs when someone claiming to be a property manager or landlord, in certain cases the actual landlord, tries to rent a property that doesn’t exist, isn’t their rental or is substantially different than advertised.”
Most rental fraud scams happen when a deal is too good to be true. The price and location may seem perfect, but the landlord or rental agency is hard to reach, want you to wire money, or can’t show you the property because of one excuse after another. Always be aware of scammers especially when you are hearing about a rental location from an advertisement, email, or through online connections.
What the Numbers Tell Us
The Federal Trade Commission, which keeps track of this type of fraud, reports that, “the fraud industry is now costing $1.7 billion annually. And of that, we had a 56% growth rate just within our industry of rental properties.”
They also estimate that 2020 is going to be a 200% increase over last year. They explain that the biggest challenge, now that the criminals have pivoted to this rental industry, is that they’re here, and they’re coming, and so we’ve got to take more aggressive action against renter ID theft.
What To Do If You Think It is a Scam
You can help prevent these types of scams by reporting them to the FTC here. You should also report the scam to your local police so they can take legal steps and warn other consumers of the potential scam.
We suggest that you do the online form to report the scam. It is quick and easy to file. It can help save someone else from falling victim to these new rental scams. If you know or have reason to believe that the person or company that scammed you is located in a different country, visit econsumer.gov.
To learn more about the types of scams and specifics of the scams check out the Real Page and their online article about “Rental Fraud: On the Rise.”