Rental Deposit Scams
Americans lost $12.5 billion to fraud in 2024, according to the FTC.
Quick Answer
Rental scams defraud millions of Americans, with reported losses totaling approximately $65 million since 2020, according to the Federal Trade Commission.
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How It Works
1
Scammers create fraudulent rental listings online, often by hijacking photos and descriptions from legitimate real estate ads or inventing properties that do not exist. These fake ads are frequently posted on social media marketplaces and classified ad websites with an attractive, below-market rental price to lure in potential victims.
2
When an interested renter makes contact, the scammer creates a sense of urgency, claiming high demand for the property. They often make excuses for why they cannot show the property in person, such as being out of town, out of the country, or concerns related to the COVID-19 pandemic.
3
Before the victim has seen the property, the scammer pressures them to pay a security deposit, application fee, or the first month's rent to secure the rental. They request payment through irreversible methods like wire transfers, gift cards, or cryptocurrency, making the funds nearly impossible to recover.
4
After the payment is made, the scammer disappears, ceasing all communication. The victim is left without a place to live and has lost their deposit money, and in some cases, has also had their personal information stolen through fake application forms.
Red Flags
- The landlord or agent refuses to meet in person or show you the property before you sign a lease or send money.
- You are pressured to make a decision immediately and send a deposit to 'hold' the property.
- The advertised rent is significantly lower than similar properties in the same area.
- The lister asks for a security deposit or first month's rent via wire transfer, gift cards, or cryptocurrency.
- The online listing has typos, grammatical errors, or an unprofessional appearance.
- They ask for sensitive personal information, like a Social Security number, before you have even seen the property or signed a lease.
- You search the address online and find it listed for sale or with different contact information.
What to Do If Targeted
- Never rent a property without seeing it in person first. If you cannot visit, ask a trusted friend or family member to go for you.
- Do not pay a deposit or any fees until you have signed a legitimate lease agreement.
- Use a secure payment method like a credit card or a traceable check; never use wire transfers, gift cards, or cash apps for deposits.
- Conduct an online search of the property address and the landlord's name to check for duplicate listings or scam reports.
- Verify the identity of the landlord or property manager and confirm they have the authority to rent the property.
- If you believe you have encountered a scam, cease all communication immediately and report the listing to the website where it was posted.
How to Report It
- FTC — File a fraud report with the Federal Trade Commission to help them investigate and stop scammers.
- FBI IC3 — Report internet-based real estate and rental scams to the FBI's Internet Crime Complaint Center (IC3).
- BBB — Report the scam to the Better Business Bureau's Scam Tracker to warn others in your community.
- FCC — File a complaint about phone scams, robocalls, or unwanted calls with the Federal Communications Commission.
- AARP Fraud Helpline — Call 877-908-3360 for free support from trained fraud specialists. Available to anyone, not just AARP members.
Key Statistics
- An estimated 5.2 million U.S. renters have lost money from rental fraud. — Apartment List 2018
- Consumers reported nearly 65,000 rental scams with losses of about $65 million between 2020 and mid-2025. — Federal Trade Commission (FTC) 2025
- The median loss reported to the FTC for rental scams between January 2020 and June 2025 was $1,000. — Federal Trade Commission (FTC) 2025
- In 2021, the FBI's IC3 received 11,578 complaints related to real estate/rental scams, with losses exceeding $350 million. — FBI Internet Crime Complaint Center (IC3) 2022
- Adults aged 18 to 29 are three times more likely than other age groups to report losing money to a rental scam. — Federal Trade Commission (FTC) 2025
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Frequently Asked Questions
Since 2020, consumers have reported nearly 65,000 rental scams to the FTC with about $65 million in losses. The FBI's Internet Crime Complaint Center (IC3) reported that in 2021 alone, 11,578 people lost over $350 million to real estate and rental scams, a 64% increase from the previous year.
While anyone can be a victim, young adults are disproportionately affected. According to the FTC, people ages 18 to 29 are three times more likely than other adults to report losing money to a rental scam. This is partly because they are the largest demographic of renters and are often targeted on social media platforms.
The most common starting point for rental scams is a fraudulent online listing. The FTC reports that in the 12 months ending in June 2025, about half of the people who reported a rental scam said it started with a fake ad on Facebook. Scammers often copy legitimate listings and change the contact information or create entirely fake properties with appealing prices.
If you paid a scammer, contact your bank or the payment service you used immediately to see if the transaction can be reversed. You should then file a report with the Federal Trade Commission at reportfraud.ftc.gov and the FBI's Internet Crime Complaint Center at ic3.gov. Reporting the incident helps law enforcement track and stop these criminals.
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