(DailyAnswer.org) – If you are in the market for a home, you need to know the different types of housing scams that could potentially impact your search.
Housing scams have become commonplace, with the Federal Bureau of Investigation (FBI) already issuing a warning about rental scams due to increased rents, rising home prices, and inflation. In 2021 alone, 11,578 individuals reported losses of $35 million due to such scams, representing a 64 percent rise from the previous year.
As it stands, the most common types of housing scams are rental, wire fraud, fake listing, phishing, foreclosure, moving, and roommate scams.
Rental Scams
Rental scams are fraudulent schemes in which criminals pose as landlords or property owners to defraud prospective tenants.
To identify rental scams, buyers should look out for the following signs:
- Landlords who refuse to show the property in person.
- Property owners who ask for payment before a lease agreement is made.
- Landlords who require payment via money order, cashier’s check, or wire transfer.
You can beat rental scammers by never sending money without seeing the property in person first, researching the landlord or other party involved in the transaction, and remaining suspicious of any deal that sounds too good to be true.
Wire Frauds
Wire frauds occur when unsuspecting buyers are tricked into wiring money to an unknown person or account.
A wire fraud will typically begin with an email or text message sent by a cybercriminal posing as a realtor, landlord, title company representative, or property manager. Through the message, the fraudsters lure potential property owners into a false sense of security through a seemingly legitimate real estate transaction.
However, the buyer ends up sending money to a scammer, leaving them out of pocket and without a home.
The solution is to always verify a seller’s identity, research the property, and never wire money without first seeing the property in person.
Fake Listings
A fake property listing will typically lack images. The fraudster may claim that the absence of images in the posting is to prevent vandalism or unauthorized entry while the property is vacant.
Fake listings also feature attractive amenities being quoted at extremely low prices.
Another tactic used by scammers is posing as landlords when responding to inquiries about rental properties listed online. Be sure to research any landlord who contacts you out of the blue and verify his or her identity through multiple sources.
Phishing Scams
Phishing scams are a type of online con that begins by sending emails that appear to be from reputable sources, such as banks or online services, but are actually from malicious actors.
The emails usually contain links to malicious websites or have attachments containing malicious code. If opened, these links or attachments can infect a user’s computer with malware or attempt to gain access to personal information.
So, how can property buyers identify phishing emails?
Fraudsters often use fake emails from real companies as part of their ploy. The aim is to make the offer seem more credible. Again, it’s important never to send any money until you have thoroughly verified the identity of the person who is asking for it.
Additionally, always double-check web addresses and email addresses before clicking links or replying with personal information.
Finally, be wary of anyone offering amazing deals on rental properties—chances are they’re not telling the whole story.
Other Types of Housing Scams
- Foreclosure scams: Fraudsters can make false assurances, like pledging to ‘save’ your home or cut your mortgage rate, for a fee, by pretending to have direct communication with your mortgage servicer.
- Moving scams: These usually involve moving companies that provide low initial estimates, load your belongings, and then demand much higher fees for delivery. It is imperative to conduct thorough research on the moving company, read reviews, and obtain a written estimate.
- Roommate scams: These types of cons involve someone falsely posing as a potential roommate and then asking for money upfront. After the agreement has been signed, you end up losing your security deposit and/or other payments.
Remain Vigilant to Avoid Housing Scams
To always be on the safe side, it is important to maintain an awareness of the various scams out there and how they can impact your search.
Always research any property, company, or individual you’re looking to work with by checking reviews online, making sure listings are legitimate, and watching out for wire frauds.
Lastly, be wary of fake listings and phishing attempts.
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