Craiglist Scammers – What You Need to Know
We got a call today from another web scammer. So we are sad to say that we don’t use Craiglist anymore. Over the past year, we have had more problems with scammers stealing our ads and reposting them at ridiculous prices in the hopes that some unsuspecting resident will turn over an application fee or even a deposit to hold the property.
It has gotten to the point that we have to spend so much time policing our ads rather than finding people actually interested in renting our homes. It is such a shame that people take a good thing and use it destructively to the point that it ruins it for others.
If you are not aware of how the scam works, we have explained it below. In addition, we are going to share tips for tenants who are looking for quality rentals and how to avoid the scams.
THE SCAM:
We post a legitimate advertisement on Craigslist. We make it nice with pictures, showing instructions, our brokerage information, and information about how to apply.
The scammer takes our ad and copies the whole thing. They change the price and place their contact information in place of ours. Sometimes they add in additional incentives like all utilities included, second month free rent, etc. Typically there is only an e-mail address and no phone number.
A prospective tenant finds the ad and is amazed at the great price that it is listed for and also the nice owners have decided to include all the utilities. How awesome is that?
Since the tenant can’t call to find out more details, they e-mail the “owner” and the “owner responds. Great love to have you rent it, send me $XX.00 to apply for the property. Believe it or not there are people who because it is a great deal, will send the money. Of course they never hear from them again and the money is now gone.
VARIATIONS:
We have seen where scammers are also taking vacant homes/ bank foreclosures and doing a similar scam.
RED FLAGS:
Don’t Proceed if –
- There is not a number to speak with someone.
- The number that they give you is out of the country.
- You can’t find out information about the person or company.
- They ask for money before you even view the property.
MYTHS:
There are a lot of people who share with you to never send money before you meet someone. At SSPM, we don’t meet our tenants at the property. We don’t meet tenants to collect applications/ application fees. We require money to be in the form of a money order or cashier’s check. We are a legitimate property management company. We have established these policies in order to maximize our time and resources.
So, what can you do to make sure that you are dealing with a reputable firm?
TIPS:
In today’s information age, there are plenty of ways to verify information:
Search Craigslist for the address of the property to see if there are multiple ads. If there is one with a higher rent amount – it is a scam.
Google the address of the property. Are there other ads for the same address for more money? Is there another contact listed? If so, you may want to contact those people and ask about the rental.
Google the contact phone number of the advertiser. What comes up? If it is a legitimate business, you will see other ads or information about the company.
In Georgia, there are real estate license laws that need to be followed. If a company manages more than 1 owner’s rentals, they need to be licensed by the real estate commission. Go to the site for the real estate commission and look for the firm – http://www.grec.state.ga.us/clsweb/company.aspx
If a company, is there are professional website with information about the company and the company executives?
Most experienced landlords have written applications process and guidelines. Ask for a copy of them before your apply.
First and foremost, trust your instincts. If something sounds too good to be true, it probably is.
May 27th, 2010 at 12:40 pm
I enjoyed your article. I hope that lots of users of Craigslist get the chance to read your article or other similar articles. It is definately a buyer beware forum for buying and selling. You were able to succinctly explain the problem and you gave concrete ways to protect yourself from scams – in any online forum.
I have been victimized by this scam as well. I believe the scammers are trying to accumulate email addresses to sell to spammers for marketing and virus distribution purposes. I have replied to all of them and gotten about a 1 in 10 response from the illegal poster. They were clearly non-native speakers and they did ask for money to hold the apartment (my apartment).
I am going to continue doing business with Craigslist as I get great response from their users.
June 1st, 2010 at 6:14 pm
I to appreciate your sharing that scam and how well you described it. A tenant moved out in the middle of the night. Left no forwarding address. I found among the left behinds, a very valuable item. I kept it for the required amount of time and then offered it forsale on Craig’s. I got a response from someone clear across the country from me on the east coast. They asked for an address, I gave them a po box. They sent a cashiers check for a lot more money than I was asking. They asked me to pay the moving company they were sending to pick it up. They would not pick it up until they were paid. Because it was very heavy and had to go across country to the east cost, it cost a lot to ship. My bank took the check and deposited it to my account. I was telling my brother about the deal and my good fortune. He called me back having googled the scam. So I knew what to expect the next day when the moving company showed up to get paid and pick of the item. I would have given them money and my item and the cashiers check did bounce but it took almost 10 days. I was so lucky.
June 2nd, 2010 at 3:04 pm
I’ve been burned on Craigslist before… It’s no fun.
June 5th, 2010 at 11:24 am
Unfortunatley there are scammers in every aspect of our business. Here in Las Vegas, Craigslit is a great advertising medium and does generate many great tenants for our properties.
I would be curious to hear how this affects your vacancy rates over the next few months.
June 6th, 2010 at 1:16 pm
I had never considered craiglist as potential for this.
June 6th, 2010 at 9:15 pm
Its just terrible because I hate the idea that you cant use craigslist anymore just because of some spammers. Maybe you could have your ads list less information, or really even minimal information, so its less attractive to spammers to replicate.
June 14th, 2010 at 4:40 pm
Really enjoyed your article. It was very interesting to see how some people are fooled so easily. Thank you for the information.
July 1st, 2010 at 4:49 am
Thanks for sharing your story. This is really a big issue not just to ignored. There are many scammers anywhere. So just a peace of advise, be vigilant on your listings & to those who are looking for a great deal, don’t be fooled in to their bate. Be careful so you could not be victimize by them.