Be aware: FBI warns of spike in real estate scams

As inflation rises and home prices surge, authorities are warning the public about a recent spike in rental and real estate scams that have cost victims thousands of dollars.

“We have seen a significant increase in the amount of money being lost by people who are desperate for a good deal, said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.

Last year, the FBI Boston Division (which represents Massachusetts, New Hampshire, Maine, and Rhode Island) reported 415 victims who lost over $13 million in losses. Officials say that’s a whopping 27% increase from the previous year.

Massachusetts leads all the states in their division with 290 victims losing $8,944,041 in 2021 to real estate scams, according to the FBI.

“Scammers are cashing in on renters who need to act quickly for fear of missing out, and it’s costing consumers thousands of dollars, and in some cases, leaving them stranded,” said Special Agent Bonavolonta.

The FBI reports many of these scams occur online, where scammers duplicate postings from legitimate real estate websites and repost their ads while altering them just slightly. After these scammers receive a response from an interested party, the “owner” claims they’re unable to show the property until they’re paid because they’re “out of town,” according to officials.

Multiple incidents have been reported to the FBI in recent months, including an Idaho man who was in the process of moving into a year-long rental in Rhode Island and lost out on over $20 thousand. The man wired the money to the “owner” of the residence to set up a time to look at the home, according to the FBI. When the victim went to the residence after the “owner” cancelled on him, he was greeted by the actual property owner who said the place wasn’t for rent and he hadn’t posted any online ad.

Below are some helpful tips to avoid becoming the victim of a real estate scam:

• Do not wire funds to people you do not know.
• Do not put money towards a house or apartment you have not seen.
• Confirm the identity of the landlord by researching public records to find out who owns the property you are seeking to rent or purchase.
• Do not fill out applications online until you have met directly with the property manager.

If you believe you are a victim of a rental scam, stop all contact immediately and file a complaint with the FBI’s Internet Crime Complaint Center here.

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