Craigslist Apartment Rental Scam

By Ilyce Glink

Looking for an apartment to rent? Now there's another thing to worry about besides the location and price.

The FBI released a scam alert recently announcing that Nigerian scam artists had been placing phony ads for rental property online, most notably in Craigslist.

The ads sound good: the apartments advertised are very cheap and well located. The transaction takes place online, with the "listing agent" encouraging would-be renters to secure the unit immediately with a deposit of two months' rent.

Apparently hundreds of tenants have sent in their deposits, and provided personal finance information, such as Social Security numbers, phone numbers, names and addresses -- everything a listing agent would need to qualify someone to rent a property.

The only trouble is that often times these ads were scams -- and renters have not only lost their money, but have turned up at an address only to discover there's no record of their lease or even that either the apartment building doesn't exist.

I talked about the FBI scam alert on a recent radio show and immediately heard from two people who had fallen victim to the scam.

Nance wrote that she is "embarrassed to admit that I fell for such an ad" for a Boulder, Colo., rental.

"I stupidly gave all of the information asked for in the e-mail, including my credit score," she continued. "I'm now sick with worry that something could happen. I have been checking daily my VISA card status, but wonder if you have any other suggestions."

Daniel also wrote that he fell for the scam, and wound up on a street in Washington, D.C., in the pouring rain, his luggage at his side, without a place to live. He crashed with a friend for a couple of weeks while he lined up a legitimate apartment rental.

The FBI says the rental scam problem has become so prevalent in Charleston, Columbia and Hilton Head, S.C., that FBI Special Agent in Charge David Thomas recently issued a warning about it to homeowners and prospective renters. Prospective tenants have also been victimized in Rhode Island, Illinois and California, among other states.

How can you protect yourself? According to the FBI, you should only deal with landlords or renters who are local. Be suspicious if you're asked to use a wire transfer service to send cash. Beware of e-mail correspondence from the "landlord" that's written in poor or broken English (think about how poorly written most phishing e-mails are). Research average rental rates in the area and be suspicious if the rate you're being offered is significantly lower. And never give out personal financial information, like your Social Security number, bank account information, phone number, current address, or credit history or score.

If you receive an e-mail inviting you to work with a real estate agent, look up that agent's license status and determine if he or she is legitimate. Most states require real estate agents to be licensed. Also confirm a phone number for that rental agent, and make sure the leasing company's office is actually located where they claim by calling the managing broker.

What should you do if it's too late and you've already fallen for the scam?

1. Report all information to your local FBI office. The bureau is tracking information as it continues dozens of investigations across the country.

2. File a fraud alert with one of the three credit reporting bureaus (Experian, Equifax, and TransUnion). It will spread the fraud alert to the other bureaus within 48 hours. This should help protect your credit history and credit score.

3. Contact your local police. File a police report, which you'll need to continue your fraud alert. You may also need to report the scam with the authorities where the property you were attempting to rent is located.

4. Freeze your credit history. You can do this for a flat fee. This will cause some annoyance, including the fact that you'll have to pay to unfreeze your credit once the problem's resolved.

5. Report the scam to the FTC.gov. File an online report so that the Federal Trade Commission can track the scam.

6. Call your credit card company's fraud division (use the toll-free number) and change the numbers on your accounts. This is a very good way for the credit card companies to track what goes on with your account.

7. If you gave any checking or savings account information in the scam, call your bank. You may want to change your account numbers for your checking and savings accounts. The bank's fraud department should assist you in taking necessary precautions.

Ilyce R. Glink's book is "100 Questions Every First-Time Home Buyer Should Ask: With Answers from Top Brokers from Around the Country" If you have questions for them, write: Real Estate Matters Syndicate, PO Box 366, Glencoe, IL 60022 or contact them through Ilyce's Web site, www.thinkglink.com.)

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