Home sweet home? After long search online, you think you’ve finally found a new home or a new roommate! It might be a beautiful place with great amenities at a bargain price, or a roommate from abroad who can’t wait to come live with you. These are all exciting offers that sound too good to be true!
Maybe it is too good to be true. Scammers are hiding fraudulent rental ads amongst the legitimate and preying on roommate listings. They often lure the unsuspecting with overpromises to trick you out of your money and personal information.
So when it comes time to get a new place or find a new roommate to afford rent, how can you spot the scam amongst the real?
Whether you found the listing on a popular real estate app or on a marketplace platform, it could be hard to identify these fake ads at first glance. But there are different ways you can spot the scam:
In Canada, there's always a proper rental process that includes background checks, income verifications and formal paperwork. You can protect yourself by scheduling a visit with a landlord either in-person or through an online video call. If the listing seems legitimate, and you’re ready for the next step, review the rental agreements carefully before signing.
Roommate scams
Maybe you aren't looking for a new rental but instead want to find someone to help you split your existing rent, scammers like to prey on these listings too. Fake listings often target students who are looking for new roommates for the upcoming school year.
Roommate scams are a variation of a cheque overpayment scams. Scammers often pose as a prospective roommate who is out-of-town or from abroad. They’re eager to secure a spot before they arrive, so they will send you a bogus cheque or money order in an amount more than what you listed for. It may look something like this:
Someone responds to your ad and sends you a cheque for $10,000 instead of $1,000. They say it’s an accident and ask you to deposit the cheque but refund $9,000 back via cheque or wire transfer to rectify the mistake. Once cashed, the bank alerts you the cheque is fraudulent. By then, the scammers would have disappeared with $9,000 of your hard-earned money.
Here’s a few warning signs to look out for:
Choosing the right roommate is in your control. Trust your intuition, don’t let scammers rush you into a decision you are not ready to make.
When looking for a roommate, there are some best practices that you can employ:
What can you do if you've been scammed?
If you suspect you may have become involved in a rental or roommate scam, you need to act fast. Cut off all contact with the scammer and print out every correspondence you had with them. Inform local police about the incident and provide as much information as possible for them to investigate. You should also let your bank know of the situation so they can put a stop to any outstanding payments and monitor your account for fraud.
It is also essential to file a report with the Canadian Anti-Fraud Centre, which can be done confidentially through the online reporting system or by phone at 1-888-495-8501.