Real Estate and Rental Scams | The Source Weekly - Bend, Oregon

Real Estate and Rental Scams

How to protect yourself from rental scams, wire fraud and more

One thing I was discussing with a colleague the other day is what seems to be a rise in real estate related scams that are happening both locally and nationally. This is not to say these scams are "new" or something that has never happened before, but something people should be aware of in their pursuit to buy, sell or rent. According to FBI statistics there were over 11,000 victims of real estate and rental fraud in 2021. Let's look at a couple of the most common types of scams that are out there and what can be done to prevent them.

Wire fraud is a complex scam that involves phishing (the practice of tricking internet users to acquire sensitive data through a fraudulent email or website) and then the scammer often poses as a party to the transaction (escrow officer, closing attorney). They send out faulty wire instructions, and just like that have stolen thousands or perhaps millions of dollars. Wire fraud can be quite sophisticated, and hard to detect, especially when compared to some of the other scams that have red flags. This is due to the scammers using phony emails/websites that appear to be real and legitimate.

The best way to protect yourself from being a victim of wire fraud is to communicate with your escrow/closing groups about how the wiring process will work. Who will be sending the instructions, on what date/time, that way you know when to expect them and know who will be sending them. Next, once you have received the wire instructions, call and verify the instructions, but do not use any number from the instructions that were sent to you, call the officer/attorney you have been working with directly to verify/confirm the instructions. I work with the same escrow officer/team on all my deals, so I know their names, and when/why they will be contacting my clients. If you are ever unsure, call your real estate agent and have them help with any issues.

One of the most common scams in real estate is one that preys upon people desperately looking for a rental. The "phantom rental" trick has been around a while because it works, especially in places where it is so competitive to find rentals. The scam itself is simple; scammers create a fake "for Rent" advertisement and often use pictures and information from current listings to make it seem legitimate. The listing will often have a below market rent and be in a desirable area. Once someone inquires the scammer will require some sort of deposit to reserve the place or to hold it for you. Once the scammer has the money, the potential renters will show up to either a fake address or a real address with someone already living in the property.

The best way to prevent this type of scam is the same as preventing 90% of scams, and that is taking notice of red flags. Like the saying we have heard over and over, "if it sounds too good to be true, it probably is." No reputable landlord or property manager requires any money up front for a "deposit" or to "hold" or to "view" a property, except for an application fee. If you are exclusively dealing with someone online, who is out of town/state/country you need to proceed with caution and be very skeptical. Use tools at your disposal like Deschutes County DIAL to search for property records, addresses and owner information. One final tip is to use and rely on professionals, like licensed real estate agents, licensed property managers, escrow/title officers and attorneys who are more than happy to assist you!

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