HAMPTON ROADS, Va. — I'm continuing to investigate rental scams after I put my house up for rent on Zillow and was shocked to see how quickly someone took the information and put it on other websites, pretending to be the owner of the house.
Investigations
News 3 reporter investigates after person uses her home in online rental scam
“It’s a crime that they can get a lot of money in a little amount of time,” said Detective Douglas Hatcher with the Chesapeake Police Financial Crimes Division.
My investigation exposed a man who tried to take my rental's information off Zillow, put it on Facebook Marketplace and Craigslist, and send people applications for the home he didn’t own.
Me and photographer Wayne Pellenberg even attempted to meet up with the man who was posing as the owner, but he never showed up and instead sent a link to an $80 application. We were finally able to get him on the phone and during our conversation, the man said he owned the house for two years.
Once I told him I was the property owner and an investigative reporter, the line dropped. I tried to call him back a few more times, but he didn't pick up.
We notified Craigslist, who took down the fraudulent post and filled out an IC3 (Internet Crime Complaint Center) form with the FBI.
The FBI says in 2021, more than 11,500 people nationwide reported losing more than $350 million in rental and real estate scams, which they say is a 64% increase from the year prior.
I spoke to former detective and crime analyst Richard James about problems with rental scams.
He said, “I think very few are being caught.”
While investigating, I went on Craigslist and Facebook Marketplace and messaged several people about homes that were for rent. Some seemed legit while others appeared to be suspicious.
I tried to call a few.
For one property in Virginia Beach, one man said we could move into the home as soon as possible. He emailed an application fee and said it needed to be filled out before we saw the house. He said, “If you are not interested, your money will be refunded to you.”
We called the City of Virginia Beach to track down the owner of the property, who said the house wasn’t for rent and thanked us for telling them what was going on.
James says they are trying to get as many people to pay the application fee to make as much money as possible. He says by doing this hundreds or thousands of times, they can make a lot of money.
Hatcher says it’s extremely difficult to track down these people. James agrees, stating that they could be local or they could be located in a third-world country.
We emailed Craigslist and Facebook Marketplace several times asking for comment and information on how the public can protect themselves. They haven’t responded to any of our requests.
Zillow provided people to interview and the following statement:
“Zillow strives to provide a safe online platform with accurate information, which is why we go to great lengths to prevent fraud from appearing on our apps and sites. We also work to inform consumers about internet scams, including information being copied from legitimate listings and fraudulently used elsewhere. Our ‘How to Recognize and Avoid Rental Fraud [zillow.com]’ page and ‘Beware of Scams and Other Internet Fraud [zillow.com]’ pages explain how to look out for red flags online, such as requests for wire transfers or rental prices that seem too good to be true, and provide other valuable information about how to avoid bad actors in the housing market.”-Zillow spokesperson
“Zillow is a reputable site, so most [of] the time the information that is on Zillow, it’s going to be legitimate. When you start going to Facebook Marketplace and Craigslist and you start seeing the same listings, you should probably question whether or not it’s a legitimate listing,” said Hatcher.
Hatcher says it's important for renters to do thorough research.
"If you have a property and a price that’s too good to be true, it probably is,” said Hatcher.
He advises people not to fill out an application before they’ve seen the home and to work with real estate professionals if they're coming from an area far away.
He says once you provide a scammer with your personal information, not only can they take your money, but they can use your information to commit other scams.
Here is information from the FBI on how to avoid being victimized:
- Do not wire funds to people you do not know.
- Do not put money towards a house or apartment you have not seen.
- Confirm the identity of the landlord by researching public records to find out who owns the property you are seeking to rent or purchase.
- Do not fill out applications online until you have met directly with the property manager.
- Know local rental prices.
- Look for online reviews, references, and testimonials from past inhabitants.
- Be wary if a potential tenant wants to rent property sight unseen.
- Be wary if a potential renter says they are out of town and will send you a cashier's check.
- Be wary if a potential landlord says he is out of the country and wants the rent sent to a foreign account.
- Do not accept overpayment for properties. If you receive a check for more than the specified amount, return it. Do not deposit it.
If you find yourself the target or victim of a rental scam, stop all contact immediately. If you have already sent money, it is extremely important to report any transfer of funds to your financial institution and file a complaint with the FBI’s Internet Crime Complaint Center at IC3.gov.
