Online Rental Scam Heats Up
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Updated: 8:39 PM Aug 1, 2011
Online Rental Scam Heats Up
A warning about a housing scam that's making a resurgence in our area. It looks so legitimate, even real estate agents are almost getting fooled.
Posted: 8:39 PM Aug 1, 2011
Reporter: Denise Wong
Email Address: denise.wong@kolotv.com
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Reno, NV - A warning about a housing scam that's making a resurgence in our area. It looks so legitimate, even real estate agents are almost getting fooled.

The scam involves websites like Craigslist or Zillow - where legitimate agencies and people post ads for homes for rent. Crooks are taking those ads and cutting and pasting to create their own phony ones. One local woman got caught up in it and lost hundreds of dollars. She's telling her story so others don't make the same mistake.
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"If it's happened to me, it's still going on. And other people are being affected by it. Other people are being trustworthy as I was. As I am. and being cheated out of their hard earned money," says Christy, who didn't want to give her last name.

For Christy, the four bedroom Arrowcreek home listed on Craigslist looked like the perfect place to move her family. When she called and emailed the person who posted it online, he said she could have it. Just wire the $400 security deposit.

"We were reluctant to send the money but then believed them because they said they were doing missionary work," says Christy.

She and her husband couldn't pass up an offer this good, so they sent the cash to the man in Africa. Only, the keys he promised never showed up in the mail.

"From there, we realized it was finally a scam," says Christy.

"You should never have to wire funds," says Kevin Sigstad, who owns Remax Premier Properties and posted the original ad on Craigslist. In his legitimate ad, the rent was about 50-percent higher.

"People copy our ads off craigslist and they reduce the price and add their own verbage," he explains as he talks about the scam.

These phony ads are getting so good, even experts are getting fooled.

"Last week I had a real estate agent call me and they said this house sounds like a really good deal. 750 dollars! Is it still available?" Sigstad explains.
"In fact, that was one of the properties. It was listed for $1,000. They had reposted it for $750. And even a real estate agent was (taken)."

Christy now knows she should have listened to her gut, instead of following her heart. She only wishes the man who conned her had used his.

"I think that it's wrong to take advantage of people. Especially at this time when a lot of people don't even have jobs."

The owner of Premier Properties says some of the red flags you should watch out for: sellers or renters who say they're overseas and want you to wire the money. He says only deal with people who are local. That's also what Craigslist advises on its website.


Latest Comments

Posted by: Donald Location: Reno on Aug 7, 2011 at 05:37 PM

$400 for a security deposit inn Arrowcreek. Get serious. This one was too easy. It would appear that the Nigerians still can pull it off.
Posted by: Craig N Location: Reno on Aug 2, 2011 at 08:50 PM

I personally use an iPhone app called Scam Detector, it exposes 350 or so of the most popular scams in the world. Most of them are real estate/ property scams. It might be worth checking it out if you have an iPhone, or work in real estate. It's kinda cool, actually.
Posted by: Janie Location: Reno on Aug 2, 2011 at 09:39 AM

I have seen these ads and responded to them. First one I was given a lengthy sob story (red flag) I wrote back and said"let me guess you need me to wire the money" I flagged the ad down. Next one I was asked to fill out credit application via email (red flag) Do not give your social security # to nameless,faceless people over the internet! I feel sorry for the people that fell for this. I would not call them stupid perhaps just less jaded than the rest of us.
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