Big scams may lurk behind your rental home, job search: What to watch for

Young consumers — including new college grads hunting for a job or a new apartment — could end up losing big chunks of cash or vital ID information, like their Social Security numbers, to some pretty sophisticated scams.

Job scams — and fake apartment rental scams — are out in full force in 2023. Younger adults age 18 through 34 rely heavily on social media to spot opportunities. They're comfortable communicating by text or messaging apps. But con artists hide behind the tech and often pretend to be someone else, even impersonating trusted friends or brand names, to target potential victims.

Job fraud is the most common type of scam for people ages 18 through 34, according to the Better Business Bureau. And consumers report losing more than $1,500 in some job-related scams.

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How to spot a 'credit check' scam

As for that ad you just spotted online for a good deal on an apartment or house for rent? A credit check scam could lurk behind it, according to a new alert from the Better Business Bureau.

Here's how that scam works: Before you can even step foot in the place, the so-called landlord or management company will require you to complete a credit check. You might even be told that you cannot see the apartment or home until a credit check is completed. If you agree, they’ll send you a link to a website where you can get the credit check done.

According to one complaint made last year to the BBB, the scammer sent the consumer an application link and asked that $50 per adult be sent through CashApp. The person looking for the apartment sent $100 for two adults, got a confirmation link and then was asked to send more money — another $400 — to hold the property. The consumer wasn't even able to see the house or talk with anyone in person about the property at this point — and didn't send any more money.

Renters have reported losing thousands of dollars after paying fees, making deposits and even paying the first month's rent on a property, according to complaints reported to the BBB Scam Tracker.  

A New Jersey consumer made a report to the BBB Scam Tracker in April, claiming to have lost $4,875 in an apartment rental scam. The money lost involved $2,000 in cash with the the rest of the money transferred via banking apps.

Even when the dollars lost are small — say in the $50 to $60 range — consumers express a great deal of frustration after they're ghosted by the rental company. Meanwhile, your cash is gone and your information is out there.

The issue: Phony ads regularly pop up online and demand upfront money — or credit checks — for apartments that don't exist or actually are owned by someone else.

Scammers take ads from legitimate rental companies or real estate listings, according to an alert by the Attorney General in Pennsylvania, and alter the ad by changing the contact information. Or the con artists will hack the actual realtor’s email account.

If you're stressed out about finding a place need that you can afford to rent, you might quickly enter sensitive information, such as a Social Security number, and pay for the credit check with your credit card. But someone is about to steal your money — and key information about you that can be used to commit other crimes.

You only discover this one is a scam when the “landlord” vanishes — and you spot odd charges on your credit card. Down the road, you might even become a victim of identity theft, where someone uses your identity to take out loans or open credit cards.

And that cool apartment or home to rent? It might suddenly be off the market — or maybe it never even existed in the first place.

The best bet: See that apartment or home first. When it comes to scams, consumer watchdogs warn that the landlord can claim they're out of town — or in the hospital — to make you believe that they're just unable to show the apartment.

"No legitimate rental company or landlord will ask you to pay up front for an apartment or house you haven't seen," according to online tips from the Michigan Attorney General's office. You can report scams to the AG's Consumer Protection Division online or by calling 517-335-7599.   

Take time to get a copy of your credit report to spot any issues, such as identity theft that might have taken place in the past. Go to AnnualCreditReport.com to request a free credit report from TransUnion, Equifax and Experian.

Your landlord is going to want to check your credit before you rent but this part of the process should be after you've seen the apartment or house in person and submitted an application.

Be warned that scammers have even impersonated names like Apartments.com or Apartment Finder to make you feel more comfortable sending money.

"Lots of homes for rent that are posted on Facebook and Craigslist aren’t actually up for rent," said Kelly Johnston, a public relations and marketing manager for the Better Business Bureau Serving Eastern Michigan.

The pictures are usually stolen from Zillow, and others, as well as Google maps, she said.

Look closely at that ad. "If there aren’t any interior photos of the location, it’s best to avoid the ad," Johnston said. She recalled a time when she found a house for rent that was incredibly cheap. But only exterior photos were posted, and after searching the property details, the house was owned by a family who wasn't renting it out.

"I was able to get in touch with them to let them know their house photos were being used to scam people out of ID and a security deposit," Johnston said.

One sign of a scam, according to an alert by Apartments.com, is that the rental agent or landlord will never have time to meet you for one reason or another. Some might even say just go "check out the house and the neighborhood from the outside and get back to me if you really like it for more information."

Scammers even might send a fake Apartments.com invoice and ask for money to be sent to a third party via Cash App, Zelle, Bitcoin, and bank wire transfers.

Make sure to tour the property — or send a friend, relative or even a fellow employee if you a moving for a new job to see the rental — before sending any money. Request a tour before submitting a rental application, giving a credit card number or other information, according to an alert on Zillow.com.

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How to avoid employment scams

A scammer might make you feel that you have no choice but to rush.

Someone else is interested; it's a great deal. It's a great apartment. It's great job.

The employment scam, which I have written about in the past, saw an uptick last year and continues to be strong in 2023, according to the Better Business Bureau.

The job scam plays out in a variety of ways. Sometimes, you might receive a job offer for an “offshore” company. But first, they want you to send money to cover a work permit, a visa, or some sort of international training. Once you pay, you'll often never hear from the folks again.

Sometimes, you might be sent what looks like a legitimate check upfront to buy equipment for a work-from-home operation. The check — you'll only discover much later when it's too late — is fake. By the time you learn that, though, you've been tricked into sending hundreds or thousands of dollars in your own money via a Bitcoin ATM or money transfer app.

The BBB Institute for Marketplace Trust found those in the 18 through 34 age range at the most risk for employment scams. About 15% of reports about job scams to BBB Scam Tracker indicated that the consumer actually lost money. 

Sometimes, the scammers will use the name of a real company — or even a real name of someone in the human resources department. Many times, they're only going to communicate with you by messaging app or text. The scammers might tailor their pitch to an individual's background, which they've reviewed by reading your resume that you posted online.

 Ways to avoid losing money

Search the name of the person or company reaching out to you and add the words "complaints" or "scam." If you're looking to rent a place, go online to search for the address or listing, the scammer’s email address, or phone number. "If you find the same ad listed in other cities, that’s a huge red flag," according to the BBB.

Never send money to someone for an apartment or house that you've not visited. Never send money to accept a job or apply for a job — even if you somehow received a check in advance in the mail.

Red flags of a job scam: Higher than average pay. Someone offering "reshipping" opportunities, such as those for a "warehouse redistribution coordinator." Any reason for sending money via a Bitcoin ATM, gift cards, wire transfer or cash app.

Never send cash via CashApp, Zelle or other cash transfer apps to make a down payment with a stranger. The BBB notes that it's OK to pay a landlord you trust with Venmo, Zelle, or another peer-to-peer app, but don't use this payment method to secure an apartment or pay a deposit. 

Contact personal finance columnist Susan Tompor: stompor@freepress.com. Follow her on Twitter @tompor.