The Numbers Are Alarming
Since 2020, nearly 65,000 rental scams have been reported to the FTC with about $65 million in losses - and since most scams are never reported to a government agency, this likely reflects only a fraction of the actual harm.
Young renters are the hardest hit. People ages 18 to 29 are three times more likely than other adults to lose money to a rental scam, according to FTC data published in December 2025.
In the 12 months ending June 2025, half of all reported rental scams started on Facebook. Another 16% originated on Craigslist.
How Rental Scams Actually Work
The Listing Copy Scam
A scammer finds a legitimate listing on Zillow or Realtor.com - often a property listed for *sale*, not rent. They copy the photos, description, and address, change the contact info to their own, and post it as a rental on Facebook Marketplace or Craigslist at an attractive price.
You see a beautiful home at below-market rent. You reach out. They say they're out of town but can arrange a self-guided tour. Everything looks legitimate - because the property is real. The landlord isn't.
The Upfront Payment Pressure
Once you're interested, the scammer creates urgency: "I have 12 applications already - I need a deposit to hold it for you." Legitimate landlords don't ask for deposits before you've signed a lease. And they never ask for wire transfers or payment apps.
The Identity Harvest
Some scammers aren't after your money - they want your identity. They create professional-looking "applications" asking for Social Security numbers, driver's license photos, bank account numbers, and pay stubs. Armed with this information, they can open credit cards, file fraudulent tax returns, or sell your identity.
8 Red Flags Every Renter Should Know
1. The Price Is Too Good. If rent is significantly below market for the area, that's not a deal - it's a trap.
2. The Landlord Won't Meet in Person. Every communication is via text or email, and every request to meet is deflected.
3. They Want Money Before a Viewing. No legitimate landlord requires payment before you've seen the property.
4. The Listing Exists Somewhere Else - As a Sale. Search the address on Google. If it's listed for sale on one site but for rent on another, someone is running a scam.
5. They Request Unusual Payment Methods. Wire transfers, Zelle, Venmo, CashApp, gift cards, cryptocurrency - these are untraceable and non-reversible by design.
6. The Application Asks for Too Much, Too Soon. A screening application needs your name, employer, income, and credit check authorization. It does not need your full SSN upfront or bank login credentials.
7. The Photos Look Familiar. Reverse image search (Google Images or TinEye) can reveal if photos appear on listings in other cities.
8. There's No Paper Trail. A legitimate rental process involves a written lease, receipts, and formal communication.
What to Do If You Suspect a Scam
- Stop all communication - don't send more money or information
- Report to the FTC at ReportFraud.ftc.gov
- Report to the platform (Facebook, Craigslist, etc.)
- File a police report if you've lost money
- Place a fraud alert on your credit if you shared personal information
What the Industry Should Be Doing
The major listing platforms don't verify who posts rental listings. Anyone can create a Facebook Marketplace listing for a property they don't own. The solution: verify identity, verify ownership, process all payments through the platform, flag below-market listings, and detect duplicate listings across platforms.
The technology exists. The question is whether platforms care enough to implement it.
*Source: FTC Data Spotlight, December 2025*