Don’t use CashApp for rental deposits

Don't use CashApp for rental deposits

By Greg Collier

Yesterday, we discussed one of the oldest scams that plagues online marketplaces. That was the used car scam. Today, we’ll be discussing the one scam which has been appearing on online marketplaces even longer, the rental scam. Since the dawn of online classifieds, scammers have been renting properties that don’t even own to unsuspecting victims.

For a little context, in the early days, scammers would list a home for rent on sites like craigslist. The listed rent price would be well below market value to entice anyone in the market for a new home. When the prospective renter would ask to inspect the home, a popular answer the scammers would give is that they’re missionaries who are currently working overseas. The scammer would then promise the renters they would send them the keys to the home once they received the security deposit payment that was typically sent by money transfer. Once the payment was sent, the supposed landlords would disappear with the victim’s money.

Technology has advanced since those days, but the scam has stayed relatively the same. A Missouri woman was looking for a new home when she found a three bedroom, two-bath house with a little garage on Facebook Marketplace. The rent was listed as $800 a month. We checked the local real estate listings for the area. While there are homes and apartments with 3 bedrooms, you can get for close to that amount. However, they only had one bathroom. 3 bedroom homes with two bathrooms are going for twice that much.

Anyway, the woman messaged the seller and the seller said that the home could be had if the woman paid first and last month’s rent. Under the direction of the seller, the woman sent the $1600 through Cash App. While the woman was waiting for the keys to be delivered, she drove past what she thought was her new home. Instead, what she saw was a for sale sign in front of the home. She called the realtor listed on the sign, and she was told the home wasn’t for rent.

The woman attempted to get her money back from Cash App, but her request was denied as the scammer refused to give the money back.

As we always say, payment apps like Cash App were designed to be used only between friends and family. If someone sends money through Cash App to someone they don’t personally, there’s a good chance they could be scammed.

Now, we have heard of landlords who accept rent payments through Cash App. That’s fine if you’ve already moved in, established a relationship with your landlord, and are comfortable paying your rent that way. However, it should never be used to send any kind of rental deposit or application fee.

Before agreeing to any kind of rental arrangement, make sure you’re dealing with the actual landlord. Do a Google search of the address and make sure there are no other listings for that property under different rental agency names or listings with a higher rent price. If the listing you’re looking at has a lower rent price and is being rented by ‘a guy’. There’s a good chance that you’re looking at the scam listing.