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Is that rental listing real? BBB study finds widespread fraud in online home, vacation rental market

The Federal Bureau of Investigation reports more than $37 million in losses associated with complaints that mention the word "rent" between Jan. 1 and Oct. 20, 2019.

A new study from the Better Business Bureau finds widespread fraud in the online home and vacation rental market.

The BBB said 43 percent of online shoppers encountered a fake listing and while most don't fall for them, the scammers are making millions.

The Federal Bureau of Investigation reports more than $37 million in losses associated with complaints that mention the word "rent" between Jan. 1 and Oct. 20 of this year.

Many consumers look for rental listings on free classified listing sites like Craigslist and Facebook Marketplace. They also check websites such as Apartments.com, Zillow, Trulia, Realtor.com and Homes.com.

"Fake listings turn up frequently on these sites, despite the companies’ efforts to keep scam listings off their sites and warn consumers about potential fraud. The study finds that while the most fraud reports come from the largest metropolitan areas, no geographic area in North America appears to be safe from it," the BBB release said.

RELATED: Beware home rental scams in East Tennessee

Here's how the scam works: a lot of these scammers will take pictures of legitimate properties, but put their contact information on there so when you feel like you've found a deal that's too good to be true, it probably is because it doesn't exist.

The BBB said the scammers then try to get a deposit and first month's rent from the victim.

It said before you agree to anything, make sure you actually talk to someone.

A lot of times, scammers will try to take you through text or email. They don't want to have a real conversation. 

People are encouraged to make sure you see the property in person, that you're not going off of a picture, because sometimes the picture doesn't actually match the property at that address.

“While an advertised rental that meets your needs at a great price might be tempting, it just may be a scam,” said Tony Binkley, President and CEO of BBB of Greater East TN. “Consumers shouldn’t rush into paying upfront fees for renting housing sight-unseen. Instead, take time to verify the details of listings.”

If you believe you're a victim of rental fraud, you're encouraged to file a report with the police and let the BBB know.

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