Online Rental Scams Exploit Desperate Renters in California

Pam Yeager thought she found her ideal rental in a charming bungalow near downtown Fullerton. It seemed perfect: slightly below average price for a two-bedroom, closer to her son, and available as her current lease ended. But this dream turned into a scam, costing her thousands to online fraudsters.

“It’s ridiculous,” said Yeager, 53. “There has to be some sort of accountability.” Many experts say scams like hers are becoming more common and harder to police. In California, a tight housing market and high rents are breeding a new wave of scams preying on people desperate for affordable homes.

Scammers often place fake ads on social media and online marketplaces, using artificial intelligence to make listings seem real. They sometimes steal existing listings, repost them, and collect money until their victims realize they aren’t dealing with a real landlord. As more people turn to social media for rentals, platforms’ limited regulation creates a haven for scammers.

“Especially in this housing market, it gets competitive and people feel pressure to act quickly,” said Sgt. Lizbeth Gwisdalla of the Orange County Sheriff’s Department, which often investigates such scams. “If it sounds too good to be true, it probably is too good to be true.”

Chris Duff, president of Greater Los Angeles Realtors Association, notes a rise in these cybercrimes. “This is not something new, it’s just rising,” Duff said. “It’s getting worse every year.”

The Placentia Police Department recently warned of a rise in rental scams on social media, urging caution before sending money, particularly without touring a property. Once scams occur, accountability is challenging. Many scammers use fake social media accounts or hard-to-trace platforms and might even operate from abroad. “These people, they’re good at what they do,” said Sgt. Frank Garza of the department.

Yeager initially found the Fullerton home listing on Zillow. It quickly attracted her attention and others’. One interested renter tracked down real estate agent Laura Spencer, who recognized the listing as a scam. Spencer contacted the homeowner, who confirmed the house wasn’t for rent. However, Yeager already expressed interest through Zillow and dealt with the supposed landlord.

Zillow, aiming for safety and accuracy, screens out fraudulent listings rapidly. Still, prospective renters are urged to watch for scam red flags. Yeager realized the rental listing vanished quickly but thought someone else secured it. Later, she received a text asking if she was still interested. She replied affirmatively.

The supposed landlord insisted current tenants were still there and shared a Google Drive video for Yeager to view — a real estate tour copy. He encouraged her to apply with a $75 fee. Despite concerns, Yeager reassured herself through the smooth communications and continued the process.

After her application was accepted, the scammer requested a $2,500 deposit to take the house off the market. Despite hesitations, a phone call with him convinced her, and he promised proof of payment. Yeager transferred the money via Zelle, believing it was refundable.

Following this, the supposed landlord demanded first month’s rent and a signed lease. Overwhelmed, Yeager sought her refund. Suddenly, all communication ceased. “It’s total crap,” she said. She lost $2,575, money needed for her move or current rent, causing anxiety about her search for a new home.

Yeager shared her story hoping to prevent others from falling victim. “Raising awareness is really the only way,” many say in the industry. Once money is gone, help is rarely possible, according to Spencer, who observed similar situations. “It’s just heartbreaking.”

Law enforcement insists tracking such scammers is possible but difficult, requiring comprehensive investigations and search warrants. Det. Gwisdalla of Orange County highlights this challenge. Last year, the FBI reported over 12,000 real estate fraud complaints, the highest in three years, citing AI’s role in facilitating such scams.

Reports of similar scams occurred statewide. In the Bay Area, homeowners reported renters appearing at their homes unexpectedly. In San Diego, a scammer reposted legitimate rental photos to solicit cash for tours. When The Times visited the Fullerton home Yeager hoped to rent, the homeowner confirmed she never planned to rent it.

“I definitely feel bad for her,” the homeowner said about Yeager. “But it doesn’t really surprise me… Lots of scams going on.”