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  • Geebo 9:58 am on December 19, 2017 Permalink | Reply
    Tags: , , rental scam, Santa Barbara,   

    Craigslist used in multi-million dollar real estate scam 

    Craigslist used in multi-million dollar real estate scam

    Real estate scams are nothing new for craigslist. They’ve been going on for almost as long as the website has been around. As we’ve detailed in the past, the way these scams normally work is someone posts an ad for a property for rent at a price often deemed too good to be true. The scammer then usually offers some excuse as to why they can’t show the home and asks for some kind of deposit or application fee. Then it turns out that they don’t even own the property. However, a couple from California were recently indicted in federal court for exploiting people for millions of dollars using a new twist on the old scam.

    49-year-old Michael Davenport and 51-year-old Cynthia Rawlinson of Santa Barbara, California have been indicted in federal court for running a real estate scam that allegedly bilked thousands of people out of close to $27 million. How the scam is said to have worked is that the pair, doing business under several company names such as MDSQ Productions, LLC, Housing Standard, LLC, Anchor House Financial, American Standard, American Standard Online, and Your American Standard, would post ads on craigslist about properties for sale and rent at bargain prices. Once someone would inquire about the property they would be told that they would have to purchase the company’s list of properties. The problem with the list was that many of the properties were not owned by any of the companies and some were even said to be non-existent. This scam is said to have gone on for seven years before any charges were finally brought against the alleged scammers.

    This really should come as no surprise as when one thinks of committing real estate scams the first place they probably think of pulling it off is craigslist. Due to the fact that craigslist never seems to review their ads for potential fraud, nor doesn’t appear to do anything else to dissuade fraudulent ads, it makes craigslist the perfect breeding ground for scams large and small.

     
  • Geebo 9:59 am on November 30, 2017 Permalink | Reply
    Tags: , , rental scam,   

    Rental scam continues to claim victims 

    Rental scam continues to claim victims

    Normally, we only post about online scams when either a new one turns up or there’s a new twist on an old scam. Unfortunately, consumers are still falling for one of the oldest online scams in the virtual book. So we thought we’d take another look at the old standby, the rental scam.

    For those who may not know, the rental scam works like this. The scammer will find a house for sale, usually on the site of a reputable realtor. They’ll then copy that ad then change it from a property being for sale to one that’s for rent. They’ll then follow this up by posting their fake ad on an unmodertaed classifieds site like craigslist. The rent will also be listed at below market values. When a consumer responds to the ad, the scammer will try to collect some kind of upfront fee, usually disguised as a rental application fee or some kind of deposit. Usually, the scammers will make some kind of excuse as to why they can’t show you the home while still asking you for money. These scams are usually designed to prey on those who are desperate to resolve a housing situation crisis in their lives.

    Recently, in Memphis, Tennessee, a scammer was able to con several people out of hundreds of dollars each for a property they did not own. The alleged scammer was said to have used the very same tactics we posted above. This is not an uncommon occurrence as it happens all over the country all the time. For example, here’s a similar report out of the Tampa, Florida area.

    In order to avoid these scams we first recommend not using unmoderated classifieds site as they’re not reviewing ads for possible fraud. Secondly, if the rent seems too good to be true it probably is. Don’t ever give money to someone without being able to walk through the property. If the seller claims to be out of the area, pass on the property. Always check with the county appraiser’s website or office to see if the property is actually available for rent. Lastly, you may not be looking for a rental property, but if someone you know is, please share this post and this blog with them in order to help educate them about this prevalent scam.

     
  • Geebo 10:03 am on November 13, 2017 Permalink | Reply
    Tags: lockbox, , rental scam, rently   

    Beware of lockbox rental scams 

    Beware of lockbox rental scams

    Reports have come out of the Treasure Valley section of Idaho where a new rental property scam has been taking place. The new scam starts out as the usual rental scam with the scammers copying a legitimate real estate ad then pasting it on to less than trustworthy classifieds sites. However, the scam takes a new twist when it comes to accessing the electronic lockbox used to secure the property for realtors and landlords. Specifically, the scammers have been targeting lockboxes given out by a company called Rently.

    Here’s how the lockboxes are normally supposed to work…

    Unfortunately, victims of the scam then give out the Rently access code to the scammers. The scammers then get access to the property and are able to show it to prospective victims like they own the property which makes it easier for scammers to ask victims for money in the form of non-existent security deposits and the like.

    If you’re looking for a property and end up needing to use one of these electronic lockbox devices, don’t ever give out the security access code to third parties. Also, you may think that since this scam is happening nowhere near you it can’t affect you, but if it’s happening in one area of the country there’s a good chance it could be happening in multiple locales.

     
  • Geebo 9:21 am on October 12, 2017 Permalink | Reply
    Tags: new york, rental scam,   

    Rental scammer goes the extra mile in fleecing victims 

    Rental scammer goes the extra mile in fleecing victims

    By now, we should all know how the craigslist rental scam works. A scam artist will copy a real estate ad from a legitimate realtor then paste it into craigslist but lowering the rental price to lower than market value. The ‘renter’ will then ask for the money to be wired to them and won’t let you inspect the interior of the home. Here’s a video about how the scam normally works.

    One family from Upstate New York found themselves victims of the rental scam, but their scammer used a completely different scam. According to the family, the scam artist represented himself as a real estate agent. He allegedly showed the family the inside of the home and even had them sign a lease before taking their money. It wasn’t until some time later when the bank knocked on the family’s door asking them why they were living in the home. The scammer was said to have had multiple victims, however, performing such an elaborate scam left him a large target for police who had no trouble in apprehending him.

    Again though, the same caveats apply to this rental scam as they do the others. Do your homework. Check the county appraiser’s website to find out who is actually renting the home if it’s even for rent. And as always the age-old adage applies, if it seems to good to be true it probably is.

     
  • Geebo 9:03 am on August 7, 2017 Permalink | Reply
    Tags: Baltimore County, Keith Mills, Maryland, rental scam, squatters   

    You don’t even have to be doing business online to become the victim of a scam 

    You don't even have to be doing business online to become the victim of a scam

    Normally, when you’re the victim of an online rental scam, you’re usually the person who thinks they rented a property only to learn the property was not for rent at all and the person you gave money to was a con artist. Those victims often find themselves broke and sometimes homeless. Recently, in Baltimore County, Maryland, that exact scam happened but another victim was drawn into the scam as well.

    Keith Mills is a contractor who owns the home and was living there while he was remodeling the home. He went away on vacation for over a week and when he returned he found the locks were changed and someone was living in his home. The people living in the home claim they had rented the home on craigslist and had the right to be there. The problem is Mr. Mills was not renting the home on craigslist and the people who had moved in had paid a scammer. So one might assume you just call the police and have the squatters removed. Not so, in this case. According to local law, Mr. Mills has to go to court to prove he is the owner of the house, then he can have the other people removed.

    It sounds like Mr. Mills was showing the property as it had a realtor’s lockbox on the door. So it’s possible someone had copied the realtor’s ad to craigslist and listed the property for rent instead of for sale which is a common craigslist scam. If you’re selling a property through a realtor, it might behoove you to keep an eye on the local real estate listings on the less than reputable websites to make sure no one is copying it.

     
    • Salman 7:49 am on August 8, 2017 Permalink

      OMG.
      I guess we all are surrounded by scammer no matter we are online or real estate business firm.

  • Geebo 9:02 am on July 27, 2017 Permalink | Reply
    Tags: , rental scam,   

    The cost of online rental scams 

    The cost of online rental scams

    A number of people tend to think that the real estate rental scams that take place online are no big deal. That couldn’t be further from the truth. Currently, southwestern Florida is experiencing a surge in these rental scams. The scam is the same one that’s been plaguing certain classifieds sites for years. A con artist, or artists, will copy an ad from a property that’s being sold and change the ad to make it appear that the property is for rent. Then the scammers will claim to be renting it at a reduced price that’s hard to resist. On top of that, they’ll try to lure in people who are either undocumented in this country or people with low credit scores. Of course the scammers will put restrictions on how you deal with them such as only contacting them through email or not letting you view the property before sending them some form of down payment or processing fee.

    WFTV in Florida supposes that if one of these scammers collected the $310 ‘processing fee’ that the scammers are asking from two people a day, the scammers could end up with a quarter million dollars in a short amount of time. That’s not even taking into account the victims who will not only be out of their money but could also find themselves without a place to live.

    The best way to find out who the true owners of the property are and if it’s for rent is to go to your county’s appraiser website. However, the best way not to get scammed is to not use that certain classifieds site that is the flame to the moth for real estate scammers.

     
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