Greg's Corner

Family taken in Bitcoin rental scam

By Greg Collier

A family from Eastern Pennsylvania is in the process of relocating to South Carolina due to one of the heads of the household being hired for a new job. The family found the ideal home for rent that they were looking for. It was in the perfect location and was well within their price range. The first problem was that the family found the home on craigslist, which the report we found this story on called “a favored hangout for scammers.” Unfortunately, that was only the beginning of the family’s problems.

After the family responded to the ad, they thought everything appeared normal. The people they were communicating with appeared to be from a rental company. The family was even sent a rental agreement to sign. However, all communication was done by text and email, which should have been the first sign that this rental company may not be on the up and up. The next sign was that the so-called rental agency asked for a $3500 deposit to be paid in Bitcoin. The scammers had to instruct the family on how to make the Bitcoin payment. After the payment was made, all communication from the supposed seller stopped.

If you’re looking to rent a home, especially one that’s multiple states away, you really need to research the listing for legitimacy. A web search for the property’s address can turn up so much information, like if the home is actually for sale instead of being for rent. That search may also show that the rent isn’t as cheap as the initial listing said it was, as scammers usually list the home’s rent as cheaper than market value to entice victims. You should also ask for a live virtual tour of the home before making any deposits. If the landlord doesn’t communicate by phone, that’s also a good indicator the listing might be a fake. Lastly, never pay a deposit in any kind of cryptocurrency like Bitcoin. While Bitcoin can be traced, it’s anonymous enough that victims rarely, if ever, get their money back.