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A new analysis from a consumer-focused federal agency finds that rental scams is an ongoing issue for tenant related,
federal trade commissionwhich protects consumers from unfair business practices, informed On Monday it had received nearly 65,000 reports of rental scams since 2020, which has cost consumers about $65 million. More troubling, the Federal Trade Commission said, is that the loss total is likely much higher because most consumers do not report rental scams.
“When you’re looking for an apartment or vacation rental, you’re probably looking at price, location, and amenities,” says the commission. notes On its website. “Scammers know this, so they create fake rental listings they know they’ll grab your attention – and money – before you know there’s no place waiting for you.”
The Commission noted that Facebook (51 percent) and Craigslist (16 percent) combined account for 67 percent of all scam rental listings.
Young renters are more likely to be scammed
The Federal Trade Commission found that the age group most vulnerable to scams is not baby boomers or octogenarians, as the stereotype has it, but renters ages 18 to 29.
“People aged 18 to 29 were three times more likely than other adults to report losing money to a rental scam,” the commission said in a press release about its analysis.
One reason Gen Z, in particular, is suffering more often is that they are the only renter-majority generation and will become the “largest renter demographic” by 2030, according to commercial rental lender Arbor. informed,
Additionally, the Commission’s data also includes credit-related rental scams, and younger tenants may be more vulnerable in this area. Generation Z and Millennials have lowest average credit score Compared to Gen X, Baby Boomers and the Silent Generation, according to credit score bureau Experian.
Since rental applications typically require a credit check, scammers send applicants links to affiliated credit score sites that may unknowingly enroll tenants in a monthly subscription, the Federal Trade Commission said.
How to spot a rental scam
The Federal Trade Commission said if you look at a rental listing on Facebook, Craigslist or any other site, it’s important to go through a mental checklist.
First, do a quick online search of the address. If you see the same rental listed for sale or at different prices on multiple sites, you’ve probably found a scam listing.
Additionally, be wary of listings that require personal information or advance payment before viewing the property.
Finally, if the list seems too cheap to be true, it probably is.
“If the advertised fare is much cheaper than most fares in the area, it may be a sign of a scam,” the commission said. Said“And if someone pressures you to make a quick decision to get a bigger deal, walk away,”