Common Craigslist Scams - Swan Valley Credit Union

Common Craigslist Scams

Once upon a time, everyone had to buy multiple newspapers and check endless listings of classified ads if they were looking for a job, car, home or apartment. With the advent of the internet, anyone in any part of the world can now visit Craigslist, an online classifieds site sorted by city, to buy and sell products and services. While I love Craigslist for its amazing service and simplicity, the website has also opened the door to scammers, con artists, thieves, hustlers and your everyday shady business dealers who are trying to separate you from your money with nothing in return.

Even fairly sophisticated internet shoppers can be fooled by these clever thieves once in a while because scammers are constantly coming up with new strategies and tactics for scams. You'll be surprised at how creative and conniving some of these thieves can be. However, knowing how scammers work can help anyone avoid the traps and pitfalls of using an otherwise awesome website.

If you have doubts about an advertised deal, it is best to skip it altogether. What's the point of trying to save money or get a discount if you run the risk of losing all your money in the process? If you have questions about current internet or Craigslist scams, below are a list of the most popular and recent schemes.

Free Stuff and A Mugging

I was recently talking to a friend from Los Angeles who told me about a new and potentially dangerous Craigslist scam. Many people who just want to get rid of items advertise free stuff on Craigslist with a physical address, but no phone number or email contact information. While most of these ads are legitimate, some enterprising muggers have found they can recruit their victims by advertising free stuff. When someone shows up, they are confronted by several men who force them to turn over their money and valuables. Keep this in mind when deciding to meet anyone off of Craigslist for a "robbery by appointment" and try to stick with ads that give contact information or have meetings in public.

The same Craigslist scam can be run without the promise of free stuff. In this case, it can actually get worse because buyers show up with cash and the intention of buying something somewhat expensive (electronics, a car, washer and dryer), and the thieves take your cash, credit cards, and identity. This is a perfect example of why you should never walk around with your Social Security Card or bank account information in your wallet, and always show up with a friend or two.

Home and Apartment Rental Scams

Usually, scams for homes and apartments show pictures of adorable places in desirable areas at incredibly low rents. You respond to the listing and the reasoning is that the owner had to leave the country urgently for missionary work or an unexpected family emergency, and needs to cover the mortgage payments for a few months. The "landlord", "property manager" or "leasing manager" then tells you that he has other interested parties and if you want to make sure you get the place, you should put down a hefty deposit, such as 2 month's rent.

Some scammers may even insist on cash, which if you know anything about renting a property, is a big no-no and red flag. Lastly, to make sure that the transaction feels legitimate, the con artist will request that you fill out a background check, which gives the fake leasing agent a ton of personal information for identity theft.

All in all, the thief will set up a number of appointments throughout the day, even giving each tenant a signed agreement and a pair of keys (not that they'll work). Once the scammer has collected the deposits, he disappears. On move-in day, all the renters show up and find out they cannot move in and have lost their deposit money. Those who have put in notice at their current apartment or home may have no place to live. Always check out ownership of the property when renting an apartment or home and ask to see the landlord's identification before signing a lease or leaving a deposit. Never rush into a deal that seems too good to be true.

The Landlord Is Out of Town and You Are Out of Luck

A variation on the renter's scam is the middleman. The landlord or property owner is out of town, in the hospital or otherwise unable to conduct business. The person showing the apartment is a friend who is doing the owner a favor. In this case, it does no good to ask for identification and a check of property records will likely show the name of the owner is the same as the one provided by the scammer. Never rent any property without meeting the actual property owner.

Scammers are sophisticated and often post pictures of homes offered for sale on other websites. It is common for realtors to post multiple pictures and even virtual tours of homes they are selling. Some scammers even manage to gain access to vacant homes to show them to potential renters. You can check realty sites with the address of the home to find out if it is vacant and for sale. It is relatively easy for scammers to gain access to REO homes that are often vacant for months, so be sure to verify the owner's identity and check property records.

Other tips for avoiding this scam are never put up cash deposits and always make checks payable to the property owner. Use bank checks not certified checks or money orders since bank checks are usually held by financial institutions for several days, giving renters a chance to double check everyone's background and references. If the person showing the apartment claims to be the representative of a management company, verify the company's existence, check the BBB and local chamber of commerce for complaints and call the company to verify the representative's employment.

Scams That Target Owners

Property owners who rent homes and apartments are not immune from scammers out to steal their money. The Nigerians, known for their eBay scams, target landlords on Craigslist by renting an apartment or home and sending a check or money order to cover the deposit, first month's rent and application fees. The check or money order is a worthless fake and is deliberately made out for significantly more than the agreed upon rent amount. The renter then contacts the landlord about his "mistake" and asks that the landlord send the extra money by wire transfer, claiming that the overage puts his family in a tough spot. While the bank is still trying to process the fake, the scammer pockets the money and the landlord finds out the check is bogus and he is out of pocket for the transfer amount.

The only way to avoid losing out on this scam is to refuse to send the money to the "renter" until his check has cleared. Check with your bank or financial institution and make sure they have verified the check and it has cleared. Tell the "renter" you will not be able to refund the overage and you will deduct it from the next month's rent.

Outsmarting Scammers

Renters can ask for a copy of the landlord's picture ID and take it to local law enforcement authorities to verify it is legitimate. They can also do a Google search on the landlord's name and property address to find out if the house or apartment has been used in previous scams. Smart renters expect landlords to run credit and background checks and should be wary of anyone offering rentals without these requirements. Getting an apartment on the spot, signing rental agreement papers and transferring keys never happen within the first 30 minutes of a showing.

On the other hand, landlords should not offer a lease to any potential tenant without running credit checks, background checks and verifying employment. At least with a scammer, you may lose a portion of one month's rent; with a bum tenant, you are forced to go through the annoyance and long process of eviction.

If a potential tenant sends a check for too much, refuse to accept it and ask for a check in the proper amount. Never refund cash to a tenant who has given a check for the deposit and fees. Ask that checks be drawn on local banks so you can verify the account and wait for the check to clear.

Buying and Selling Cars on Craigslist

Landlords are not the only ones who can be scammed with fraudulent checks, money orders, and cashier's checks. These checks and money orders are good enough to fool banks and are often not discovered until weeks after they have been deposited. Sellers who release their car to a buyer can lose their car and payment, so do not release your car title until you have actually cashed the check.

Furthermore, do not accept checks from out of state banks. Sellers can take checks to a local branch of the bank on which they are drawn to verify the check is good and exchange it for cash. Or just ask the buyer to bring cash in the first place, but be sure to have a counterfeit detector pen on hand for larger transactions. The pens usually cost less than $10 and could easily prevent a situation where you are handed a roll of fake $100 bills.

Other essential tips to avoid Craigslist scams involving buying and selling cars include:

Never accept a check that is for more than the selling price of the car and agree to refund the difference. The check is likely fraudulent and in addition to losing your car, you will be out of pocket for the "refund" given to the buyer. The same could happen with counterfeit bills.

Buyer beware of scammers who offer low priced cars and a back story about why the car needs to be sold immediately. Usually these scammers pose as sellers who are out of state or out of the country and are unable to see the buyer in person. You get so anxious to get a good deal that you do not even see the car, just a photo. Of course there is no car and once the seller has your money (usually by wire transfer), he disappears. Never buy a used car without test driving it, having it checked by a trusted mechanic, seeing the title, and pulling a Carfax history report. Do not hand over your money until the car and title are in your possession.

Beware of sellers who try to pressure you into a quick sale and never wire money to an out of area seller. Even if a car seems like a great deal, insist on taking the car to your mechanic. If the deal is real, the seller will not object because any seller will understand the need to check out a car before buying it. But if there is no car, the seller will likely tell you the car has been sold. Always get contact information, preferably a home phone number and physical address that can be verified. It is too easy for scammers with just an email address to disappear after they have your money.

In a variation of this scheme, sellers will offer to do a transaction through an escrow company which makes the buyer believe his money is safe. The buyer gets an email that appears to be from a legitimate, established company, but the link in the email routes the buyer to a fake escrow site. This is similar to the PayPal and bank email scams that are making their rounds on the internet. Do not click on the links in these phishing emails, and instead go directly to the site. If the seller is legitimate, you will get your car and if not, you will keep your money safe with a real escrow company.

Buying Tickets on Craigslist

Ticket scams are common and not just on Craigslist. Counterfeit tickets are big business for con artists on and off the internet. One way buyers can protect themselves is to ask for photos of the tickets or to meet the seller and ask to see the tickets. Tickets for different events are unique and scammers often do not have the ability to produce replicas of specific tickets. You should know

what real event tickets look like and if the tickets offered for sale are different (don't have the watermark or hologram), do not buy them.

Another way to make sure tickets are legitimate is to check the seating plan for the event venue. Make sure that any tickets you buy have numbers and letters that correspond to the seating plan in the venue where the event is being held.

Ask to see a receipt for the tickets. If they were purchased legally, the ticket company provides the buyer with a receipt which shows the amount paid, the name of the event and the venue, and the ticket numbers. Season ticket holders are assigned account numbers which can be verified through the ticket company or vendor that originally sold the tickets.

Lastly, beware of cancelled tickets. A "seller" can buy tickets with their credit card, and then list the tickets for sale. The minute you purchase them, the seller goes back and cancels the tickets. For example, you'll never know this till you call the airline a week or two before the trip or show up to the airport ready to travel.

As you can tell, buying tickets on Craigslist is very risky and leaves buyers very susceptible to getting scammed by experienced con artists. If you want to avoid these scams, try your best to buy from a reputable ticket seller or 3rd-party broker.

Buying Through The Mail

Buying any item via mail adds a level of uncertainty. To protect yourself, it is best to offer to send half the money when the item is mailed and you receive confirmation from the carrier company, and the other half when it is received. Keep a record of all correspondence, including contact information supplied by the seller, and request that the seller send the item with a tracking number.

UPS, FedEx, and USPS have online tracking services. Online tracking services notify the addressee by email when the package has been sent and allow the person to track the package until it arrives at their doorstep. Whenever possible, use secure online payment services, such as PayPal or MoneyBookers, a PayPal alternative, when paying for items that will be shipped. PayPal has an excellent buyer protection system in place and their claims processing department is great at working with buyers to resolve any potential issues.

Generally, it is best to buy locally when shopping on Craigslist. Otherwise, use auction sites like eBay and , the largest retailer online, for out-of-area purchases. Unlike Craigslist, which specializes in classified listings for private individuals, eBay and Amazon offer buyer protection services and a seller rating system. These sites deal with international sellers and take steps to protect buyers from scams.

For example, Amazon does not release and disburse funds to sellers until 14 days after a transaction has occurred, safe-guarding buyers in case of a return or fraud. Although Amazon

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