As students look for housing this fall and residents plan a last minute vacation rental, the DRPS Major Crime Fraud Unit has brought two recent rental frauds to the attention of consumers.
The Canadian Anti-Fraud Centre recently issued a safety message in relation to long term and short term property rentals.
Fake Ads
In the case of long-term rentals, fraudsters create classified ads for property rentals that are available in ideal locations. The ads are posted with low prices to attract more consumers. Potential tenants receive a rental application that asks for personal information including contact and banking information, job and pay details.
Fraudsters say that they are out of the country and as a result, are looking to rent the property quickly and to a good person. They may indicate they’re unavailable to show the rental but say they will send the keys if the consumer sends a deposit. Once an offer is accepted, consumers are instructed to send first and last rent via money service business, e-transfer or bank wire.
The consumer is told that, if they are not happy with the rental, the fraudsters will issue a full refund. Once the money is received the ads are deleted and communication with the fraudsters ceases. No keys are ever received and no rental exists.
Short-term rentals
In the case of the short-term rental, fraudsters create classified ads for vacation property rentals in popular tourist destinations. The ads are often posted on trusted websites or the fraudsters mimic known vacation sites. Interested consumers will receive prompt responses from the fraudsters and desired travel dates are always available.
To secure the booking, fraudsters will ask that a payment is made quickly via money service business or wire service. They may also recommend a fake secure payment processor. This payment processor is only available outside of the trusted website. A discount may also be offered if payment is made in full.
In reality there is no reservation linked to the consumer’s account with the trusted website. Consumers will lose the ability to contact the fraudsters. In the worst case scenario, consumers won’t realize they are victims until they arrive at their destination and there is no rental.
How to Protect Yourself
Following are some of the tips provided by DRPS
- Complete an online search for the property’s address to make sure it is not a duplicate post. Fraudsters often create ads by copying the ad of a property that is listed for sale or recently sold
- Research the market value for the area and be wary of prices that are lower than the average
- Whenever possible, physically visit the property. schedule a showing and confirm it is available
- Request a lease agreement and review it thoroughly
- Do not send money to strangers
- When entering into a rental agreement through a trusted service provider, you must use their payment provider to be eligible for their refund/cancellation policies
- Contact Equifax and Transunion if you have provided sensitive information on applications.
- Trust your instincts. If it seems too good to be true, it probably is
If you think you or someone you know has been a victim of fraud, please contact the Canadian Anti-Fraud Centre at 1-888-495-8501 or report online at www.antifraudcentre.ca.