Rental Scams
Americans lost $12.5 billion to fraud in 2024, according to the FTC.
Quick Answer
Rental scams defraud prospective tenants by using fake listings to collect deposits and rent for properties that are not actually available, with the FBI reporting over $396 million in losses from real estate fraud in 2022.
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How It Works
1
Scammers create fraudulent listings for rental properties. They often hijack photos and descriptions from legitimate real estate postings for homes that are for sale or already rented, then advertise them at a very attractive, below-market price on sites like Facebook Marketplace and Craigslist.
2
The scammer, posing as the landlord or property manager, pressures the prospective tenant to act quickly to secure the property. They often claim to be out of town or unavailable to show the property in person, creating a sense of urgency to prevent the victim from discovering the fraud.
3
The victim is instructed to pay a security deposit, application fee, or the first month's rent to reserve the rental. Scammers demand payment through irreversible methods like wire transfers, cryptocurrency, or gift cards, and once the money is sent, they disappear.
Red Flags
- The landlord or agent is unable or unwilling to meet you in person or show you the property.
- The advertised rent is significantly lower than comparable properties in the same area.
- You are pressured to make a decision immediately and send money upfront without a formal lease.
- The lister asks for payment via wire transfer, cryptocurrency, Zelle, or gift cards.
- The online listing has errors, vague descriptions, or uses photos from other real estate websites.
- You are asked for sensitive personal information like a Social Security number before viewing the property.
- The person you are dealing with claims to be out of the country for work or a personal emergency.
What to Do If Targeted
- Never rent a property without seeing it in person first.
- Search the property address online to see if it is listed for sale or has different rental details elsewhere.
- Do not pay a security deposit, application fee, or first month's rent with cash, wire transfer, gift cards, or cryptocurrency.
- Always insist on a written lease and review it carefully before signing or paying any money.
- Be suspicious of landlords who claim to be out of the country and cannot meet you.
- Compare the rent price to other similar properties in the area; a price that is too good to be true is a major red flag.
How to Report It
- FTC — File a fraud report with the Federal Trade Commission to help with law enforcement investigations.
- FBI IC3 — Report online rental scams to the FBI's Internet Crime Complaint Center.
- 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
- The FBI's Internet Crime Complaint Center (IC3) received 11,578 reports of real estate/rental scams in 2021, with total losses exceeding $350 million. — FBI IC3 2022
- Consumers reported nearly 65,000 rental scams to the FTC between 2020 and mid-2025, with total losses of approximately $65 million. — FTC 2025
- 43% of online renters have encountered a listing they believed to be fraudulent. — Apartment List 2018
- Younger renters (ages 18-29) are 42% more likely to lose money to a rental scam than older renters. — Apartment List 2018
- In the 12 months ending in June 2025, half of all reported rental scams originated on Facebook. — FTC 2025
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Frequently Asked Questions
Rental scams are very common, with 43% of online shoppers encountering a fake listing. The Federal Trade Commission received reports of nearly 65,000 rental scams between 2020 and mid-2025, though the actual number is likely much higher as many incidents go unreported.
The FBI's Internet Crime Complaint Center (IC3) reported that victims of real estate and rental scams lost over $396 million in 2022. The Federal Trade Commission states that reported losses from rental scams totaled about $65 million between 2020 and mid-2025. The median loss for a victim is around $400, but one in three victims loses over $1,000.
While anyone can be a victim, renters between the ages of 18 and 29 are three times more likely to report losing money to a rental scam than other age groups. Scammers often target college students on Facebook groups looking for housing near campus. Younger renters are 42% more likely to have lost money from rental scams.
The majority of rental scams originate online. In the 12 months ending in June 2025, about half of the rental scams reported to the FTC started with a fake ad on Facebook. Another 16% of scams began on Craigslist.
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