Beware of Bogus Property Rentals and Tenants with Too-Good-to-be-True Offers
April 30 2012 - 8:00AM
Business Wire
You have scoured hundreds of online classifieds looking for the
perfect apartment rental. After weeks of clicking, one listing
catches your eye—the place is perfect and, most important, the
price is right. Before you put any money down on that great deal
just remember: sophisticated scammers use the Internet, and
particularly free classified websites, to prey on unsuspecting real
estate victims.
Rental property scams generally happen in one of two ways:
1. You’re looking for a house or apartment to rent and get
scammed by an “owner”; or
2. You’re renting out a house or apartment you own and get
scammed by a “renter.”
How these Scams Play Out
In the first scenario, you’re searching the Net and come across
a place in a great area, at a great price. The advertisement looks
legitimate so you start communicating with the “owner,” generally
by email. The owner says the place is yours if you wire money to
cover an application fee, security deposit, etc. You wire the
money, and then never hear from the “owner” again. How does this
happen? Scammers hijack legitimate listings, change the contact
information and then list the modified ads on another site; or they
make up listings for places that aren’t for rent or don’t even
exist.
In the second scenario, a “renter” contacts you expressing
interest in renting your place. You start communicating, also
generally by email. The renter sends you a check for a deposit but
then contacts you later to cancel. You wire the money back only to
find out the check was a fake.
How to Protect Yourself
“Whether you’re looking for an apartment or house to rent or
rent out property you own, finding the right place or tenant is
challenging,” said Shelley Bernhardt, Director of Consumer
Protection at Western Union (NYSE: WU), a leader in global payment
services. “Fraudsters use sophisticated techniques and create very
believable stories to lure you in. However, there usually are one
or more red flags that can tip people off to a possible scam, such
as a renter wanting to rent a property sight unseen or extreme
urgency to get a deal done.”
Here are some tips to keep in mind:
- If the rental price sounds too good to
be true, it probably is. Research average rental rates for similar
properties in the area.
- If you’re communicating by email, check
for common red flags like poor grammar, misspellings,
character/spacing mistakes, and excessive capitalization.
- Most renters want to see the property
before they commit; if they don’t, chances are you’re dealing with
a scammer. Another red flag is if they have an unusually strong
sense of urgency to get you to rent or rent your property to them
very early in communications with them.
- Be cautious when dealing with people
who say they currently live overseas or are out of the country on
business. Scammers tell victims this to explain why they can’t meet
in person. Be cautious also if they prefer to communicate via
e-mail only.
- Don’t send money to anyone you don’t
know and trust, especially people you’ve never met in-person.
Western Union provides a trusted and reliable way for people to
send money to family members and friends. However, it is important
to remember that a money transfer can be paid out to the receiver
within a short time—even minutes—and after the money is paid,
consumers cannot obtain a refund from Western Union, even if the
transfer was the result of fraud.
If you sent a Western Union Money Transfer® and believe you may
be a victim of fraud, call the Western Union Fraud Hotline number
at (800) 448-1492. Information on fraud scams is available on the
Consumer Protection section of Western Union website at:
http://www.westernunion.com/stopfraud. Additional
information on money transfer scams is available from the Federal
Trade Commission at: www.ftc.gov > Consumer Protection >
Money Matters > Scam Watch > Money Wiring Scams.
About Western Union
The Western Union Company (NYSE: WU) is a leader in global
payment services. Together with its Vigo, Orlandi Valuta, Pago
Facil and Western Union Business Solutions branded payment
services, Western Union provides consumers and businesses with
fast, reliable and convenient ways to send and receive money around
the world, to send payments and to purchase money orders. As of
March 31, 2012, the Western Union, Vigo and Orlandi Valuta branded
services were offered through a combined network of approximately
495,000 agent locations in 200 countries and territories. In 2011,
The Western Union Company completed 226 million
consumer-to-consumer transactions worldwide, moving $81 billion of
principal between consumers, and completed 425 million business
payments. For more information, visit www.westernunion.com.
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