Attorney General Corbett Cautions Travelers and Property Owners to be Wary of Vacation Rental Scams

Attorney General Tom Corbett urged Pennsylvania consumers, including both travelers and property owners, to be the lookout for scams that are linked to summer vacation rentals.

"Internet sites like Craigslist, or other online classified ads, are increasingly popular among consumers who are shopping for last-minute bargains on rental homes or homeowners who are hoping to earn more rental income during the summer," Corbett said. "Unfortunately, these websites are also popular with scam artists who are hoping that an attractive offer will tempt some consumers to respond without researching the transaction."

Corbett said a number of false ads and fraudulent emails linked to summer vacation rentals have already been reported to the Attorney General's Bureau of Consumer Protection in recent weeks. The Internet ads and email scams have targeted consumers who are searching for accommodations as well as property owners looking for renters.

"Modern computer technology makes it quick and easy for thieves to copy photos and descriptions from legitimate vacation rental websites and then create their own Internet ads," Corbett said. "Consumers who respond to the bogus ads are typically asked to wire-transfer their rental payment in order to guarantee their reservation."

Corbett added that con artists will often structure their ads in a way that forces consumers to respond quickly.

"Last minute 'specials' or low-priced rentals for 'this weekend' or 'next week' don't allow shoppers much time to research the offers or engage in lengthy negotiations," Corbett said. "The short time periods involved also help justify the scam artists' requests for immediate payment."

Corbett noted that consumers who own vacation homes can also be targeted by these schemes.

"Counterfeit checks or fake money orders are popular currency for scam artists looking for victims who are advertising items online," Corbett said. "Often, the bogus renter will 'accidentally' send a check for an amount that is larger than necessary, requesting that the homeowner use a wire-transfer to return the excess money."

Corbett said thieves understand that it can take a week or more for banks to identify counterfeit checks or money orders. Unsuspecting consumers who fall for these schemes eventually learn that the rental checks they received are worthless, but not before they have transferred hundreds or thousands of dollars to scam artists.

Corbett also cautioned consumers to be suspicious of vacation home listings that request detailed personal data, such as social security numbers or bank account information - supposedly to verify your "credit worthiness" as a renter. In reality, these listings are a type of "phishing" scheme, used by identity thieves to steal personal information.

"Scam artists don't care that they're stealing your money or ruining your summer vacation plans," Corbett said. "All they care about is finding the next victim - so it is important that every consumer take steps to protect themselves and avoid these schemes."

Corbett encouraged consumers who are searching for rental properties to consider the following tips before completing a transaction:

  • Get the details about the transaction in writing, preferably in the form of a contract, including the property information, dates of the stay, total price, and exactly what is included and what is not.
  • Ask for references from past renters.
  • Speak to the owners/managers on the telephone instead of exclusively through email.
  • Check with the Better Business Bureau for possible complaints against the owner or rental company.
  • Be careful when reserving properties far from home. It's easy to get scammed if you can't verify the condition and location of properties pictured on the internet.
  • Proceed cautiously if asked to make an international payment or use a money order or wire transfer.
  • If possible, pay with a credit card. Credit cards typically offer protection in the event that your accommodation is not supplied as promised.
  • Never give out personal financial information (bank account number, social security number, etc.).
  • Consider using a reputable rental company or real estate agent for peace of mind and to assist you in your search.

Corbett urged property owners to considering the following tips before renting their homes:

  • Be suspicious of inquiries with obvious mistakes regarding your property, like asking about your beautiful condo when you are offering a cabin.
  • Beware of offers to send you more than the price you are seeking with a request that you wire or return a portion of the money. These schemes typically involve counterfeit checks that bounce after you've delivered your own money back to the con artist.
  • Be suspicious of people who want to use an unsecure form of money transfer, certified checks or cashier's checks.
  • Question offers that give more information than a typical traveler would reveal, such as drawn out reasons for the rental - like work, family issues, or medical problems.
  • Also watch out for inquiries that seem too casual; serious renters care about the location, size, and condition of the property and won't offer to send money until all the important details are worked out.

Finally, Corbett offered the following tips for everyone to keep in mind concerning Internet ads or email offers:

  • Bad spelling, grammar and implausible stories are all tell-tale signs of internet scams. Someone who claims to be a high ranking official or traveling "businessperson" should have their facts straight and be able to communicate clearly.
  • Other fraud warning signs can include an unusually low price on a rental property, offering an owner more than their stated rate, and uncertainty or carelessness regarding the exact property location or availability.
  • Get a verifiable address, phone number, and email account. If someone is taking part in a legitimate transaction, they should be willing to disclose contact information beyond a generic or anonymous free email address. Be especially cautious if the free online e-mail service is from another country (e.g. Yahoo.co.uk).
  • Don't respond to messages that you know are fraudulent. This will just lead to more fraudulent messages and spam being delivered to your account.

Consumers with questions or concerns about vacation rental scams can call the Attorney General's Consumer Protection Hotline at 1-800-441-2555 or visit the Attorney General's website at www.attorneygeneral.gov to file an online consumer complaint (Click on the "Complaints" button on the front page of the website and select the "Consumer Complaint Form").

 

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