05/03/2013
Real Estate News
Rental scam
If you have already seen this I apologize.
This case represents an unusually intricate listing scam, that escaped detection on a reputable listing site, and hijacked the identity of a real estate agent. And the scam is spreading to other sites
After Inman News brought the case to the attention of the NAR, the group’s general counsel, Laurie Janik, called it the most sophisticated listing scam that she’d heard of.
In addition to harming consumers, such scams may put real estate agents in profession reputation and physical safety at risk.
The follow is a condensed article from staff Teke Wiggin of Inman news. To read the story in its entirety click here.
Zillow scam puts NAR and MLS “on alert
Ron Bailey can just picture it: He’s showing a rental listing to some prospects when suddenly, a person he’s never met thunders, “Are you Ron Bailey?”
“Well, of course I’m Ron Bailey. Then things would start to get ugly.”
That’s because, in this scenario, the menacing stranger would have sent a considerable sum of money to someone he thought was Ron Bailey.
And while the stranger would have been expecting to receive keys to the property in return, he would not have heard from Bailey again. Recently, Bailey learned that a scammer “scraped” his rental listing and reposted it at a lower rent on Zillow, where the original listing was already posted.
The scammer did little more than change the end of the street address from “Drive” to “Terrace,” and remove the copy in the original listing.
A prospective renter then found the fake listing posted on rental site HotPads and contacted the scammer.
After hearing from the renter, the scammer corresponded through email with her, using Bailey’s name, an email address with Bailey’s name in it, and a phone number.
Zillow’s rental tool opens the door to fraud by allowing users to manually enter rental listings, Waring said. Unlike fake for-sale listings, fake rental listings can be used to coax money out of consumers, because renting sometimes doesn’t require very much paperwork.
Spokesperson Cynthia Nowak declined to comment specifically on Bailey’s case, but said that the listing site “goes to great lengths to police activity.”
She outlined preventative measures that include text-message verification for users who enter listings, notices posted throughout the site that warn of scams and a quality-control team dedicated to combing through listings to w**d out fraudulent ones.
Scams that involve hijacking listings to weasel money are far from new. They are pervasive and have been for years.
The case, however, rattled Waring partly because it involved sites, previously viewed as highly resistant to scams.