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News | Aug. 3, 2020

CID Lookout: CID Cybercrime Unit Warns Rental Scams on the Rise

Housing rental scams are on the rise worldwide. The U.S. Army Criminal Investigation Command,
commonly known as CID, reminds the Army community to be cautious when responding to any
advertisement regarding home or apartment rentals.

According to Edward Labarge, director of CID’s Major Cybercrime Unit, scammers use a
variety of tactics to steal people’s money before the victim determines the listing is fake.

“A typical rental scam works by a property being listed at a low price, usually below market rate,
to get the attention of potential renters,” said Labarge. “Then the scammers will pressure the
renters to pay a deposit and the first and last month’s rent to secure the rental.”

Army CID reports there are currently millions of fake listings for apartments, duplexes, and
houses listed on classified ads and reputable rental sites worldwide. The scam is accomplished
when rentals are advertised, but they do not actually exist, are no longer available, or are up for

“Rental scams will be more prevalent in larger metro areas where there are a large number of
real estate rentals on the market,” said Labarge. “This makes it easy for these types of scams to
go unnoticed due to the large volume of rentals.”

Although rental scams may be targeted toward anyone seeking a rental property, military
members may be more prone to falling victim due to frequent Permanent Change of Station

Labarge also said areas surrounding military installations are targeted due to competitive rental
markets and service members having unique housing situations where they may not be available
to view a property in person prior to arriving in the area.

Fake listings often lure victims in by offering military discounts, low rent, good neighborhoods,
and great amenities.

“If a house or apartment is being listed well below market norms, there is a reason,” said
Labarge. “If it’s too good to be true, it usually is. Also, a good telltale sign that the listing is a
scam is that the landlords won’t want to meet you in person or there is no screening process.
Every landlord will want to make sure they meet you in person, no matter how brief since they
are making a major decision to trust that you’ll follow the rules of the lease.”

CID officials remind the Army community, if you feel you are a victim of a rental scam, contact
your local CID office or law enforcement agency as well as the Federal Trade Commission.

Known types of rental scams:

Hijacked Ads
Scammers use real rental ads and photos from legitimate postings to create their own fake ads.
Scammers will often use the same name as the legitimate posting and change the email address,
or other contact information, to their own.

Phantom Rentals
Scammers make fake listings using photos from properties that are not for rent, for sale, or do
not exist.

Watch for Warning Signs:
• They want you to sign or send money before you see the property.
• They want the security deposit or first month’s rent before you sign the lease.
• They ask you to wire or send money through a payment app.
• They say they are out of town or out of the country.
• They are ready to make a deal with no background information.

Protect yourself from becoming a victim of a rental scam:
• Do not rely solely on email to contact the owner and be wary of foreign telephone numbers.
• Do online research of the rental company, property address, and the owner.
• Conduct a reverse image search of the photos to see where else the images are being used.
• Ask for additional photos. The actual owner or property manager should be able to provide
additional photos.
• Compare rent amount to other rentals in the area.
• Take a tour, or have someone you know in the area tour for you, in person or by video.
• Call the company to verify before signing a lease agreement.
• Never pay a security deposit, first month’s rent, or application fee with cash, wire transfers,
gift cards, prepaid cards, or payment apps because once you send it, there is no way to get
your money back.
• Obtain and review a copy of any contract prior to sending any money or providing any
personal information.
• Do not make rush decisions. Scammers will often pressure suspecting victims to complete
the deal quickly due to increased interest in the property, creating a false sense of urgency.

In addition, the Criminal Investigation Command’s Major Cybercrime Unit continues to warn
the Army community of ongoing Coronavirus-themed phishing attacks impersonating
organizations with the end goal of stealing information and delivering malware.

Labarge said the Major Cybercrime Unit continues to “aggressively pursue cybercriminals both
domestic and abroad who target our Soldier's and their families in their online campaigns.”