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Moving this summer? Watch out for a new twist on fake rental ads. According to multiple BBB Scam Tracker reports, scammers use fake tenant credit checks to trick potential renters into compromising sensitive personal information.
How the scam works
You find a good deal on an apartment while browsing rental listings online. When you call the number to inquire, the owner asks you to complete a credit check before you can see the place. If you agree, they'll send you a link to a website where you can get the credit check done.
The website may look professional, but it's all part of a scam. After you enter your sensitive information and pay for the credit check, the "landlord" will disappear. Your credit card information could be compromised, and you could even be at risk for identity theft.
One consumer in California reported paying for the credit check as part of the application, then tried to cancel after they "put all of our personal information on there… there is no phone number on a form to request for someone to contact you and no one ever does." They lost $100, had to cancel their card, and are now worried about identity theft.
Another consumer in Connecticut reported they filled out the application and paid, but "No credit check was made until after 35 days after I called email and texted numerous times regarding my refund for service not provided… lesson learned I will always look at reviews as if I did, I would not have lost my $100…" - again, leave the name out since we never know if the scammer is spoofing a name.
How to avoid credit check rental scams
- Be wary of lower-than-usual prices. If the rent for an apartment is well below the going market rate, consider it a red flag. Scammers love to draw people in with claims that sound too good to be true.
- Do some research. Search the listing online, as well as the associated phone number and email address. If you find another listing for the same property in a different city, you've spotted a scam. Reverse image searches can be helpful, too, as can searching the alleged landlord's name along with the word "scam." These searches only take a few minutes and are well worth the effort. Also search BBB Scam Tracker for any recent reports.
- Always see the property in person. Many rental scams involve listings for properties that don't exist. Something is fishy if the renter refuses to let you know where the apartment is before you complete a credit check or pay them a deposit. Be wary, too, if you are given the address of a home with a for sale sign in the yard. You might not be in contact with the actual owners.
- Verify the property owner's information. Contact a licensed real estate agent to see who owns a property or check the county property appraiser's website. Ask the landlord for a copy of their ID to verify they are who they claim to be before you offer up sensitive personal information like your social security number for a credit check. If the landlord refuses or gets upset, you could be dealing with a scammer. Check BBB.org for trusted property owners.
- Be cautious about credit check websites. If you need a credit check, always use reputable sources, such as those recommended by the Consumer Financial Protection Bureau. Also, check to see if the website is secure. Learn how to identify a fake website.
For more information
Read tips and scam alerts on our Moving home page. For additional tips, review the BBB Scam Alert: Avoid peer-to-peer payment scams on Paypal, Zelle, Venmo, and others.
You can also find some excellent tips at BBB Tips: 10 Steps to avoid scams.
If you’ve been the victim of a rental scam, use your experience to help others avoid falling prey by reporting it at BBB.org/ScamTracker.