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BBB often warns consumers against doing business with callers and online companies who don’t have a valid physical address. But scammers are tricky and have found a way to associate an address with their shady dealings.
Homeowners or businesses with multiple properties, and renters, should be aware of several types of scams that begin with a stolen address and the false hope of having a great place to live or start a business.
Phony rental scams
BBB Scam Tracker reports indicate that many con artists steal online rental listings – including the photos of the house or apartment and the property description – and create their own listings, which look legitimate but contain the scammer’s contact information instead of the property owner’s or rental agent’s. They may work out a deal with potential buyers or renters over the phone, insisting that because of an emergency or circumstances outside of their control, they are not able to meet in person or show the property. Instead, they'll set up a drive by of the property to view from the outside and then, send a contract by mail or email. The entire transaction is done virtually.
Once the contract is signed, they ask for a deposit and first month’s rent. In return, they promise to mail the keys once the funds have cleared. Sadly, no key arrives. The phone and email address that worked before during the negotation process are shut down and the cash is gone.
Vacant house scams
Scammers will use vacant addresses to convince unsuspecting renters that they own the place. They'll scout out vacant homes that don’t seem well-cared for – a “For Sale” sign, lack of an alarm system, or an unkempt lawn are a few clues. After identifying a potential client, the vacant home is set up as their own rental listing including tours to potential renters. In a few cases, renters who thought they a had a signed lease and were paying rent, eventually find out the who really owns the home months later and have to move out.
Businesses using fake addresses
Common high value items such as RVs, cars, boats, select breed puppies, and brand name clothing, advertised at steeply discounted prices and prompt shipping can be found online on what looks like a trusted website. The images are harvested from legitimate websites to convince people the products are in stock, ready for delivery. The address listed for the business is also not as it seems. A quick web search may reveal that the “business address” may be located in a residential area, a vacant place of business, an empty lot, or the same address as a real, but unrelated business.
How to Avoid Vacant House Scams
Tips for owners of unoccupied houses:
- Secure all windows and doors to the vacant property. Keep intruders out by double checking the locks before leaving the property for any length of time.
- Maintain the property. A lawn, home, or business that looks kept will typically discourage unwelcomed guests from targeting the property. Find a reputable lawn care company to come at regular intervals, set up automatic sprinklers, and keep the contact information for a trustworthy local handyman nearby.
- Loan an extra key to a trusted friend or neighbor. Ask them to check up on the property periodically. This is also important in case someone needs to give a handyman or the police access to the property and much safer than a lockbox.
- Keep an alarm system up and running. If an alarm system is not within budget, consider installing a surveillance doorbell that can show images of who has been on the premises, in real time.
- Put a hold on the mail. A mailbox overflowing with junk mail is a tell-tale sign no one is home and could attract suspicious individuals. There is minimal cost to forwarded or change the address to your new address or a P.O. box.
- Consider purchasing vacant home insurance. Most vacant home insurance plans cover acts of vandalism, fires, and weather-related damage. Ask your home insurance provider about getting coverage.
- Notice the warning signs. If mail arrives with someone else’s name, or complaints regarding rental agreements or sales you did not make start to occur, it’s time to investigate the matter further.
Tips for renters:
- Confirm the identity of the landlord. A legitimate landlord won’t hesitate to show their ID and allow a photo to be taken. Confirm the real property owner by checking county registers.
- Know local rental prices. If someone offers a great rental for an extremely low price, compare the same property in the same neighborhood and ask questions.
- See the property first. Never sign a lease or make a deposit without seeing the property in person first.
- Never wire money to a stranger. Don’t give in to a sob story. Once the wired cash is gone and the deal falls through, there is no way to get the money back. Legitimate landlords should always accept payment by check.
- Watch out for red flags. If a property has a “for sale” sign, but the “landlord” wants to rent, ask questions. It’s also suspicious to find a broken lockbox. Check local rental and sales listings. See if the property is on there before going to an open house.
- Use the services of a reputable rental agency. Find agents on BBB.org.
Avoid online shopping schemes:
- Look out for too-good-to-be-true deals. Know the normal price range of the item and be wary if you see the same product available at a steeply discounted price.
- Double check the “business address.” If a website has a business address, search the address. If the address pops up on a map as a residential address, a vacant property, empty lot or overseas, chances are it's probably not a legitimate business.
- Make purchases through a reputable online retailer. Double check business ratings at BBB.org and read through customer reviews before moving forward with an online retailer.
For More Information
For more information, see this BBB Study on Rental Scams and the BBB Tip: Smart Shopping Online.
Scammers tactics change depending on the situation. If you suspect you may have fallen for one or know of someone who has, report it on the BBB.org/ScamTracker. Your report can help others.
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