Watch out for COVID-related rental scams

While millions of scam listings for apartments, houses and vacation properties appear online, the Better Business Bureau (BBB) is urging the public to watch out for a COVID-19 twist to common rental frauds after receiving almost 50 reports within the last month from victims in the United States.

How the scam works

Fraudsters search for information about legitimate rental or sale properties on specialty websites. Then they copy the ads and repost them on a different platform, usually on Craigslist, Kijiji and Facebook Marketplace, and pretend to be the owners. In order to attract interest, the rent amount for the property is usually below market price.

When consumers contact the scammer, they are invited to see the apartment/house but are informed that due to COVID-19 restrictions, they are unable to meet in person for a viewing. However, the scammer encourages the potential renter to visit the property and do an inspection from outside. If they wish to proceed with the rental, the scammer tells them to make a payment online for the first month’s rent or a security deposit. The scammer also promises to make arrangements to sign the lease agreement once COVID-19 restrictions are relaxed.