RENTAL LISTING FRAUD AWARENESS

We here at ECOM Media Group Inc., the My Ideal Home Network and Off-Campus Housing 101 value our customers. We greatly appreciate the trust you give us in helping you with your rental needs. We have had many success stories of individuals using our service, but occasionally we hear reports of people attempting to defraud our users.

We have created this Rental Listing Fraud Awareness webpage to help educate our customers so that they are able to achieve their goals – which are renting their property, finding a property to rent or finding a roommate – and do so in confidence and without fear.

My Ideal Homes Network is an online classified advertising system. We will pull any ad that looks suspicious off of our websites immediately. If you suspect an Ad is not legitimate on one of our sites, please contact us by email (please include the Ad listing number) at info@myidealhomes.com seven days a week or phone us toll free at 1-800-862-9874, Monday thru Friday, 7am to 4pm PST.

Please Note: We are not involved in transactions between you and any of the individuals you communicate with outside of the My Ideal Homes Network and/or Off-Campus Housing 101. We do not guarantee any transaction, certify any landlords OR renters, nor do we provide protection for payments transacted between our customers and outside parties.

Contrary to popular belief that “scammers only use the free sites”, they occasionally target premium paid sites.

Customers have asked us, “Can someone steal my Ad, personal information or pictures on this site?” Unfortunately, YES. Copying and pasting Ads, or parts of an Ad, is NOT a crime. Scammers “steal” their Ad material from various classified Ad sites – and even more surprising, they take material from independent real estate sites and the real estate Multiple Listing Service! So should you stop using pictures on our site? No! Pictures are what is going to get your home rented!

To help prevent this, We suggest to our customers that they do NOT use the actual house number on their listings (use “Apple Drive” instead of “123 Apple Drive” or use cross-streets, like “Apple Drive and Peach Road” so prospective renters can still Google Map your location). This makes your Ad less desirable for scammers to use since they need an actual physical address to send people to.

Please Note: On our "Add a Listing" form (where you originally created your Ad) in the bottom of the “Current Contact Info” section, you will find the following statement regarding the possibility of your information being made public on the internet. You can easily “modify” your listing (by creating an Alternate Contact) to follow these guidelines:

“This contact information may be indexed by Google and other search engines. If you are concerned, please utilize the 'Alternate Contact' feature to display only the information you wish to be made public. We recommend not using your last name for example. If it is on the Internet, then it is going to be indexed without notice by the search engines.”

TYPES OF RENTAL LISTING FRAUD

The most prevalent types of scams perpetrated on online classified advertising websites are the “Nigerian Rental Scam”, “Check Overpayment Scheme” or the “Advance Fee Scam”. Here are examples of how these crimes are usually executed:

The Overseas Tenant
An overseas individual (usually from Africa or the UK) contacts you via email saying they are moving to your area in the next few weeks due to a job transfer and needs a place to rent. Their email is full of rambling detailed personal information, assurances of their trustworthiness and honesty, usually overtly friendly and religious in nature. Even though they are highly educated professional individuals (engineers, doctors, scientists or ministers), their use of the English language, grammar and spelling is terrible. You are asked to please email the rental terms as well as the property details and pictures (even though it’s on your Ad listing) to them ASAP. Generally, these individuals want to rent your property sight-unseen, ask you to take your Ad offline (offering to pay you to do so) and sometimes even ask you to oversee the arrival of their furnishings. A third party will be issuing you a check on their behalf.

Soon an authentic-looking check complete with watermarks arrives in the mail. These fake checks look so real that they even fool the bank tellers. However, the amount on the check is for way more than you agreed upon (sometimes they pre-warn you it’s going to be more) explaining the extra funds are to cover travel or moving expenses. Usually it creates a financial shortage for the tenant. They engage you emotionally, imploring you to deposit the check quickly (assuring you that the funds are indeed there) and ask you to immediately wire-transfer the difference to a foreign account, of course, inviting you to keep a generous amount for your trouble.

The money is transferred as asked. The “tenant” never shows but has your money. The check that was sent to you bounces and you are left to cover the insufficient funds and overdraft fees.
The Overseas Landlord
These landlords want to only communicate via email (again, the language, grammar and spelling in their emails is terrible.) Usually the price on their listing is extremely low for the market – or sometimes free! The story they tell you is that they were suddenly transferred (again, usually to the UK or Africa) and they want someone to care for their home until they return. The catch? The keys to the property are still in their possession (overseas) and there is no one locally who can show you the property in their absence.

They encourage you to drive by and if you are interested, they have you fill out a rental agreement via email, sending a deposit (express mail a money order or cashier’s check, or wire transfer money via Western Union or MoneyGram). Once the funds have been received, they will then send you the keys. Once that has been done, the Overseas Landlord has your money - but the keys to the property never arrive.
The “Wire a Friend or Relative Proof of Ability to Pay” Scam
An overseas landlord has a very cheaply priced (or even free) property. In order to “prove” their ability to pay for a deposit or rental fees, a potential tenant is asked to wire transfer a large amount of funds to a friend or relative. The tenant is reassured there is no risk in doing this, since the landlord does not have access to the transferred funds. All they are requiring is a faxed or scanned copy of the wire transfer receipt to “prove” they have enough money to cover the rental payments. This leaves the potential renter with a false sense of security because they think the funds will surely be returned. The friends or relatives are not allowed to go and retrieve the funds until the prospective landlord verifies the transaction was valid, using the receipt the tenant provided them with.

The landlord takes the copy of the receipt to their nearest Western Union office, not to verify the transaction, but to actually remove the money! All they needed to pull this off is the sender’s name and address; the recipient’s name (the friend or relative) and address; the Money Transfer Control Number (MTCN) and the transfer amount. Knowledge of this information is considered sufficient proof by the wire transfer company and the money is handed over with a (false) signature taken for the receipt! Police are powerless to do anything because the victims FREELY told the scammer the information they needed to take their money!
The Financial Implications to You in These Three Scams
Wire transfers cannot be cancelled or reversed, and the person receiving the money cannot be tracked. Companies like Western Union or MoneyGram DO NOT offer a “purchase protection” policy, so despite what scammers tell you, you are NOT secure financially sending money via wire transfer. There is NO way to stop the process once you send it.

Western Union states in their Online Fraud FAQ, “Western Union is not responsible for the non-receipt or quality of any goods or services.” For more information go to their website at: (http://www.westernunion.com/info/faqSecurity.asp?country=global)

If you have received a check or money order, by law, your bank is required to release the funds to your account after 1-5 business days. Normally it takes 7-10 business days for a check to actually clear through the sender’s bank, but a check from a foreign bank can take up to 8 WEEKS to clear! That means you might not know if the check was good for two months! And if this check bounces and your bank removes these funds from your account, YOU are held legally liable and responsible for the money you used (or didn’t have in the first place) and any overdraft fees! Worse yet, the bank can actually bring charges against you for being PART of the FRAUD!

If you think you have encountered a scammer - don’t panic. The risks to you are minimal if you simply stop communicating with them or tell them their deal “sounds like a scam”. If you have received or exchanged money, or are in any doubt about your safety, report your concerns to your local police (or the authorities listed at the bottom of this page).

General Rental Fraud

The next types of rental fraud are “old as the hills” but when there is a financial downturn in the economy, these types of fraud tend to surface.

Don’t mistrust every single situation that looks like this, but before you hand over the money, try to find out more information about the property itself, verifying ownership and making sure it is not in foreclosure!

“Renting with the Intent to Rent to Others”
This fraud is where someone rents a legitimate property, turns around and lists the property for rent themselves, this time pretending to be the owner! They show the property to several people, collect first and last month’s rent and any deposits from all interested parties and then take the money and run!
“Renting on Behalf of the Owner”
This fraud is more typically where a company claims to be acting on behalf of another well-known legitimate agency (or on a more personal basis – via someone who gains access to a vacant home, says they are “acting on behalf of the owner” who they explain is otherwise predisposed due to illness, traveling abroad, or overcommitted). They also collect the rent and deposits from all interested parties and then leave town. In some cases people have moved into a home that is being foreclosed and are stunned when an eviction notice is put on their door! In most cases, the “home for rent” is either a property in foreclosure, a seasonal rental (off-season) or the actual owners are just away!
“For Rent: Home on the Real Estate Market”
Real estate brokers are seeing a rise in homes they have listed for sale showing up as rentals on various online classified sites. Sometimes the homes are occupied and both the owner and renters are surprised. Sometimes agents get phone calls from their clients after discovering their own (vacant) home is suddenly for rent. In one case a homeowner discovered that a home he had for sale had somehow been rented to a family who had already moved in, claiming they were given the code to the real estate agent’s lock box to get the keys and had changed all the locks after moving in!

TIPS TO PROTECT YOURSELF FROM RENTAL FRAUD

Do your research and educate yourself. Google “rental scams”, “advance fee scams” and educate yourself on the subject of internet scams. There are many examples of the types of experiences people have had, as well as overseas letters people have received. Check and see if they sound like ones you have received as well.

Information for Landlords
A great website for Landlord Fraud Prevention Tips and forms to use: http://www.criminalfraud.com. We also highly recommend becoming a member of your local landlord association. These associations have the cumulative industry knowledge to best protect you from fraud & scams. The membership is usually very inexpensive relative to the value of the services they provide. They will help keep you out of trouble before you get in.

Red Flag - Be wary when a potential tenant emails you and asks you to send pictures and property information that is already ON your rental listing. If they were really interested in your property, they would already know this information; they have the ability to print it from their own computer. Scammers send so many random emails that this is the only way they can keep track of which property owner is responding to them.
Red Flag - The prospective tenant lives overseas. Not all foreign people looking for properties are fraudulent. A big clue will be emails from people who want to send you a check for more than the rental amount and have you wire them the difference, have very poor language usage, bad or non-existent grammar, ask you to send them details that are already in your rental listing, give you excessive personal details about themselves not relevant to the situation, and stress the need for trust and honesty.
Check out potential tenants thoroughly! Have them fill out a rental form entirely. Ask to see a form of ID. Obtain a credit history report (individuals with good credit are likely to be good tenants) and get at least 2 rental references. When phoning these references, as a trick question, ask “Do you have any available suites for rent?” If they are just a friend and not a previous landlord, you will catch them off-guard. Be devious when checking references, in case the previous landlord wants to get rid of a problem tenant, by asking trick questions. Make up a scenario and say the tenant said this to see the reaction. Also, look at the condition of their car – is it a beater, extremely dirty or not cared for? That is probably how they will care for your property.

Information for Tenants

Red Flag - Trust your gut feelings. If something doesn’t feel right, chances are – it isn’t! Be really wary of any listings that offer “free rent” because the landlord had a sudden job transfer out of the country. Also be very wary of a property that is renting for an unusually low price for what it offers or the neighborhood. Don’t get greedy!
Red Flag - No direct contact available other than email. Chances are the listing is NOT legitimate if you encounter one of the following: You phone a number and there’s no answer (even if you can leave a voicemail, but no one ever returns your call), the number has been disconnected, an unsuspecting party answers (who knows nothing about the rental listing), or some foreign scammers are even telling people via email that the reason they cannot phone is because they are deaf.
Do business with LOCALS. Even if a landlord is not locally available, any legitimate one will have someone locally (friend or relative) managing the property for them (showing the property, managing the rental financial details and providing you with a walk-thru and keys).
Before renting a property, check for “notice of default on the address” call the local property recorders (USA) or land registry (CDN) offices or tax assessment offices (even if you met someone face-to-face and viewed the property) especially if there is a Property Management or For Sale sign out front. Find out for sure who actually owns the property before handing over any money (especially if it’s in foreclosure). Don’t be afraid to ask the landlord outright if the house is in foreclosure.
Google the potential landlord’s email address or telephone number to see if it matches the person you have been dealing with. This kind of search doesn’t always bring results but sometimes scammers get lazy and use the same email address or phone number to scam others! Chances are their names are actually posted on several scam awareness websites!
Ask to see the Landlords ID (after asking their name of course!) as well as ask to see proof of mortgage payments (to verify the payments are current and not in foreclosure). A legitimate landlord would not be put off by you asking this. Check with the local property registry to verify the owner (more information below in Landlord/Tenant Interactions). Pay by check (that you can put a “stop payment” on) and DO NOT PAY BY CASH!!!

Dealing with Money Transactions

Huge Red Flag - NEVER ever send or wire money (via Western Union or MoneyGram) or for a property you have never seen.
Red Flag - someone wants to rent your property sight-unseen. If someone is paying you and part of the deal is to wire money elsewhere, it’s a scam.
Red Flag - Landlord tells you they live out of the country and they will send you the keys to view their property if you send or wire money immediately. Again, a scam.
Red Flag - Landlord asks you to wire money to one of your friends or relatives, asking you to scan the receipt and email it to them as “evidence” or “proof” that you can afford the rent. Also a scam.
Red Flag - Landlord is unable or refuses to meet with you face-to-face before financial transactions take place.
Red Flag – Never give financial information to someone via email. Apply the “Stranger on the Street” Rule. If a stranger on the street stopped and asked you to give them the same information, would you give it to them? Probably not! NEVER provide your credit card number, bank account info, driver’s license number, social security number or social insurance number, a scanned copy of your passport or other photo identification via EMAIL (anywhere, especially overseas). Email is NOT secure.
Beware if a foreign landlord or tenant suggests the use of an online escrow company or Title Insurance Company (who would most likely also be fraudulent), or PayPal, etc.
NEVER pay a security deposit and the initial month’s rent in cash to someone you don’t know and haven’t verified their ownership of the property.

Communications with Scammers

Be wary if email correspondence has a lot of spelling or grammatical mistakes. Scammers tend to use awkward phrases that people in North America would not use. It is obvious in these emails that English is NOT their native language (should really raise a “red flag” if they say they are from the USA or Canada to begin with!) Scammers really stress “trust” and “honesty” to reinforce your belief in their integrity and a lot of time use phrases that lead you to believe they are spiritual people.

Some examples from scammer correspondence we've seen here at My Home Rental Network:

"Hello, I'm happy to read from you with keen interest..." (using phrases most people in the States or Canada wouldn’t use)

"Because of my work and won't be back for the occupant of the apt..." (is living outside the country, usually Africa or England)

"I want you to let me have trust in you as i stand on my word...", “I want you to know we are kind and honest people…” (trying to build your trust and honesty)

“We are offering you this house base on trust…” (again trying to build trust – this time for a house with no monthly rental cost)

"I won't be back in the America's." (Most people would not refer to the US or Canada in this way)

"We are not coming back to (city name) anytime soon, we are thinking of selling the property if we don't get a renter before next (whatever day)." (Sense of urgency, trying to appeal to your sympathy to their plight)

"I did not put anyone in care of my house, so theres no how to hide the keys and let you pick it up. The best i can do is send you the keys and the only way i can do that is you make a rent deposit..." (asking for money before you can get access to view the actual property)

“Pls kindly withdraw ,with immediate effect, the advert from the web, as I don’t mind adding $50 for you to do that…” (asking the landlord to remove his Ad and offering to pay extra to do so)

REPORTING INTERNET FRAUD

How do I know if my situation is considered fraud?

Internet crime is defined as any illegal activity involving one or more components of the Internet, such as websites, chat rooms, and/or email. Internet crime involves the use of the Internet to communicate false or fraudulent representations to consumers. These crimes may include, but are not limited to, advance-fee schemes, non-delivery of goods or services, computer hacking, or employment and/or business opportunity schemes. Just be aware that unless money actually traded hands, there is not much they can do for you!

If you have exchanged money in a possible scam – don’t expect to get your money back. Also be aware of the “money recovery scams” out there. Google that subject for more information.

How do I report my experience?

In Canada:
Contact Reporting Economic Crime Online (RECOL). Please do not direct your complaint to RECOL using email -- use either the RECOL application at http://www.recol.ca/ or the toll free RECOL number through the Phonebusters National Call Centre at 1-888-495-8501.

PhoneBusters is a joint operation between the Royal Canadian Mounted Police and the Ontario Provincial Police to create a national phone support organization for victims and complainants of all fraud types. There are a number of telephone operators dedicated to the RECOL function and available during normal office hours to assist you in making your on-line complaint.

In the United States:
Consumers who have been victims of check overpayment scams should file a complaint with the Federal Trade Commission (FTC) at www.ftc.gov . FTC toll free hotline: 877-FTC-HELP (877-382-4357).

Contact the Internet Crime Complaint Center (http://www.ic3.gov). The Internet Crime Complaint Center (IC3) was established as a partnership between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C) to serve as a means to receive Internet related criminal complaints and to further research, develop, and refer the criminal complaints to federal, state, local, or international law enforcement and/or regulatory agencies for any investigation they deem to be appropriate. The IC3 was intended, and continues to emphasize, serving the broader law enforcement community to include federal, as well as state, local, and international agencies, which are combating Internet crime and, in many cases, participating in Cyber Crime Task Forces.

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