Scam targets landlords and subletters
Thinking of renting or subletting
your place this summer? Beware of
the overpayment scam that's happening
all across North America.
In this scam, landlords receive an email — commonly from someone claiming to live in England or Africa — from a potential tenant looking for a place to stay, explained Glenn Matthews, housing mediation officer for Fanshawe and Western. "Once they get someone responding to them, the (potential tenant) offers payment and sends either a cheque or a money order for ... a significant amount over the monthly rent."
The potential tenant will then — "almost immediately" — realize they sent too much money and ask the landlord to refund the excess amount, said Matthews. The landlord wires back the excess money via a recognized money service, such as Western Union.
What the landlord does not know is that the original cheque or money order was fraudulent, and that he or she just wired the scam artist money straight out of his or her pocket. "The cheque or money order is a forgery, and it will take three weeks to clear the bank," said Matthews.
After the landlord has sent the money to the tenant and the fraud cheque has not cleared the bank, there's not much the landlord can do. There is no way to track down the tenant, as he or she may have used a fake name or address.
Besides the money wired to the scam artist, the landlord might also have to pay fees to the bank.
"Not only will you lose money, but depending on the information you give (such as your address, name and email) ... they can easily go back and compromise your address," cautioned RCMP Cpl. Louis Robertson of the Canadian Anti-Fraud Call Centre.
Robertson said this is not a new scam. "We saw a surge in 2006/2007. We did a lot of prevention on that kind of scheme, but unfortunately, bad guys are always finding ways to use fraudulent cheques any way that they can."
"This is North America-wide. It's happening everywhere, it's happened here," Matthews added. "It can be very expensive. I've known a couple of landlords who have been caught repaying $2,000."
There isn't much that can be done if the scam is successful, so Matthews and Robertson caution landlords and subletters to practice caution and vigilance when dealing with potential tenants.
"The biggest way to heighten your awareness is if the person sends a huge amount of money and then asks for it back. Don't send a cheque — the landlord should not refund any money unless they are absolutely sure (the original payment) will clear the bank," Matthews said. He added that a tenant who is so desperate to take a place that he or she will send money for it, sight unseen, should be a red flag.
"If you're a landlord, you should ... find out who your tenant is. Somebody willing to take a place without even looking at it or without too many questions — you have to wonder about that," he said.
It is important to remember, however, that every case is different and that, while it is important to be cautious, "We're not discouraging landlords from taking international students — they can be great tenants," Matthews said.
For more information, visit www.fanshawec.ca/housing.
In this scam, landlords receive an email — commonly from someone claiming to live in England or Africa — from a potential tenant looking for a place to stay, explained Glenn Matthews, housing mediation officer for Fanshawe and Western. "Once they get someone responding to them, the (potential tenant) offers payment and sends either a cheque or a money order for ... a significant amount over the monthly rent."
The potential tenant will then — "almost immediately" — realize they sent too much money and ask the landlord to refund the excess amount, said Matthews. The landlord wires back the excess money via a recognized money service, such as Western Union.
What the landlord does not know is that the original cheque or money order was fraudulent, and that he or she just wired the scam artist money straight out of his or her pocket. "The cheque or money order is a forgery, and it will take three weeks to clear the bank," said Matthews.
After the landlord has sent the money to the tenant and the fraud cheque has not cleared the bank, there's not much the landlord can do. There is no way to track down the tenant, as he or she may have used a fake name or address.
Besides the money wired to the scam artist, the landlord might also have to pay fees to the bank.
"Not only will you lose money, but depending on the information you give (such as your address, name and email) ... they can easily go back and compromise your address," cautioned RCMP Cpl. Louis Robertson of the Canadian Anti-Fraud Call Centre.
Robertson said this is not a new scam. "We saw a surge in 2006/2007. We did a lot of prevention on that kind of scheme, but unfortunately, bad guys are always finding ways to use fraudulent cheques any way that they can."
"This is North America-wide. It's happening everywhere, it's happened here," Matthews added. "It can be very expensive. I've known a couple of landlords who have been caught repaying $2,000."
There isn't much that can be done if the scam is successful, so Matthews and Robertson caution landlords and subletters to practice caution and vigilance when dealing with potential tenants.
"The biggest way to heighten your awareness is if the person sends a huge amount of money and then asks for it back. Don't send a cheque — the landlord should not refund any money unless they are absolutely sure (the original payment) will clear the bank," Matthews said. He added that a tenant who is so desperate to take a place that he or she will send money for it, sight unseen, should be a red flag.
"If you're a landlord, you should ... find out who your tenant is. Somebody willing to take a place without even looking at it or without too many questions — you have to wonder about that," he said.
It is important to remember, however, that every case is different and that, while it is important to be cautious, "We're not discouraging landlords from taking international students — they can be great tenants," Matthews said.
For more information, visit www.fanshawec.ca/housing.
