Greg's Corner

Gift Card Twist on Rental Scam

By Greg Collier

A long-running rental scam is now circulating with a slightly different approach, and renters are being urged to proceed with caution before signing any new lease.

The classic version of the scam begins when fraudsters copy legitimate home sale listings, complete with photos and descriptions, and then repost them on platforms like Craigslist or Facebook Marketplace as rental properties. Their goal is to collect deposits or fees from prospective tenants before the deception is uncovered.

In the latest variation, scammers request an upfront payment for a background check before the tenant is allowed to view the property. In some cases, they insist on payment through gift cards or other non-refundable methods. These payment requests often come before any in-person meeting or property walkthrough, which should be treated as a serious warning sign.

Victims are sometimes drawn in by unusually low rental prices in desirable areas, which can cloud judgment and create a sense of urgency to act quickly. Taking time to confirm the legitimacy of a listing can prevent financial loss. This can be done by checking public property records and confirming ownership before providing personal information or making any payment.

Once the victim pays the background check fee or deposit, the scammer may attempt to gather even more money or personal data, such as employment details and contact information, putting the victim at risk of both financial loss and identity theft.

In some cases, scammers do not even bother with fake online listings. Instead, they search for people who have posted “looking for housing” ads on social media or classifieds and contact them directly with an offer. This tactic can make the scam feel more personal and convincing, which increases the likelihood of the victim following through with payment.

Prospective tenants are advised never to send funds until they have verified the property is truly available for rent and met the owner or manager in person. Any suspicious rental activity should be reported to the Better Business Bureau, the state attorney general’s office, and relevant consumer protection outlets.