As real estate fraud spikes, Nessel issues consumer alert

LANSING, Mich. (WLNS) — Real estate fraud has seen a sharp spike in recent years, and Michigan Attorney General Dana Nessel has a new consumer alert to educate renters and homebuyers on how to avoid such scams.

Fraudulent real-estate listings often advertise properties that don’t exist, aren’t for sale or rent or aren’t really what they seem to be.

“Sadly, when the sums reach such heights, fraudsters and scammers are drawn to these markets,” said Nessel.

For example, someone listing on Facebook Marketplace used one Florida home for four different scams, with the objective of luring several people to buy or rent that same home.

“Prospective homebuyers and renters can avoid falling victim to these scams with moderate vigilance and reasonable precautions, and a healthy skepticism of any listings that appear too good to be true,” Nessel said.

According to Zillow, these are all red flags that you should look out for:

• Requests to wire funds — Most frauds ask for money to be wired using Western Union or MoneyGram, or to be sent through apps like Venmo or Cash App. Never send or accept money from someone you have not met in person.

• Long-distance solicitations — People in other countries might claim to be interested in buying or renting a house in the United States.

• Requests for verification codes — Don’t share verifications you’ve gotten by text. Scammers can use these to hijack your account.

• Requests for personal or financial information — Don’t give your bank account number or Social Security Number to anyone you haven’t verified.

• Grammar/spelling errors and sob stories — Spelling and grammar mistakes, as well as stories of hardships, often point to fraud.

Ingham County recommends tool to combat property fraud

To help you avoid falling victim to a rental scam, the Federal Trade Commission offers the following strategies:

• Conduct an online search — Look for the name of the owner or rental company with the words “complaint,” “review” and “scam.”

• Look at prices of similar units — If the price is lower than most comparable units, it could be a scam.

• Never give personal or financial information — If someone contacts you and says they’re working with the owner or company, don’t give personal information. Use the contact info you have and contact the owner or company first.

• Don’t pay with cash — If anyone requires that you pay with cash, wire transfers, money cards or cryptocurrency, it’s a scam. Once you’ve sent these funds, it’s unlikely you’ll be able to get them back.

If you think you’ve fallen victim to a rental or real estate scam, report it to the following:

• Local law enforcement

• The FTC

• The website where the fraudulent ad was posted

You can also file a complaint with the Michigan Department of Attorney General’s Consumer Protection Team.

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