The housing market in California is tighter than ever, and with high rents and limited availability, desperate renters are falling victim to a rising tide of online scams. Scammers are taking advantage of the situation, placing fake listings on social media and other online marketplaces, often using artificial intelligence to make the content appear legitimate. The result? Thousands of dollars lost to online fraudsters.
Pam Yeager, a 53-year-old renter, thought she had found her perfect next rental in a cute bungalow near downtown Fullerton. It seemed like a no-brainer: It was priced slightly below the region’s average for a two-bedroom home, would allow her to live closer to her son, and was available right as her current lease was expiring. But it turned out to be one big scam, costing her thousands of dollars to online fraudsters.
The Anatomy of a Rental Scam
The scam typically starts with a fake listing on a social media platform or online marketplace. The listing often offers what appear to be unbeatable deals, capitalizing on people’s desperation. The scammers may use artificial intelligence to make the content appear legitimate or simply take existing listings and repost them, collecting as much money as they can before victims learn they were never in touch with a legitimate landlord.
Once a potential renter expresses interest, the scammer will typically ask for money upfront, often through difficult-to-trace platforms. They may also ask for personal information, which can be used for identity theft. In Yeager’s case, the scammer sent her a link to a Google Drive video of the home, which turned out to be a copy of a previous real estate agent’s tour that had been downloaded. They also asked her to fill out an application with a $75 fee.
The Challenge of Holding Scammers Accountable
Once such scams occur, it’s extremely challenging to hold someone accountable. Many perpetrators only communicate through burner social media accounts or ask for money through difficult-to-trace platforms. Some are even operating from outside the country. This makes it difficult for law enforcement to track them down and bring them to justice.
Real estate professionals across the state have seen cybercrimes like these increasing. Chris Duff, president of Greater Los Angeles Realtors Assn. and co-owner of Beach Real Estate Group, said, “This is not something new, it’s just rising. It’s getting worse every year.” Just last week, the Placentia Police Department warned of a “sharp rise in rental property scams on social media platforms” and urged residents across the region to be extra cautious before sending anyone money, especially without first touring a property.
Protecting Yourself from Rental Scams
So, how can you protect yourself from falling victim to a rental scam? Here are some tips:
- Be wary of listings that seem too good to be true. If the price is significantly lower than other listings in the area, it’s likely a scam.
- Never send money without first touring the property. If the landlord refuses to let you see the property before sending money, it’s a red flag.
- Be cautious of requests for personal information. Legitimate landlords will not ask for your social security number or other sensitive information until after you’ve signed a lease.
- Use reputable rental platforms. Websites like Zillow and have measures in place to prevent fraudulent listings, but scammers can still slip through the cracks. Always verify the listing with the landlord or property manager before sending any money.
The housing market in California is tough, but it’s important to stay vigilant and protect yourself from scams. By following these tips, you can increase your chances of finding a legitimate rental and avoiding the heartache and financial loss that comes with falling victim to a scam.
