Police and security experts urge vigilance as families lose thousands to cyber fraud scheme
Several families in Ontario have reportedly lost thousands of dollars after they paid to rent a cottage from someone who turned out not to be the owner.
As reported by CBC News, Toronto resident Pat Fiorino had hoped to spend six days at a decently priced lakeside retreat that he rented and saw on an online booking site.
Having rented cottages listed on the site and several others before, he was comfortable sending $1,050 to Ian, the supposed owner, without seeing the property firsthand. Fiorino also received booking information, a link to more photos of the property, and an invoice, making the transaction seem legitimate.
But when Ian stopped responding to phone calls or emails in the days leading up to the vacation, he became concerned. After investigating online, he found four other people who also tried to rent the property for their families and had apparently been booked on overlapping dates. All in all, the families had lost over $8,000.
Speaking to CBC News, Ontario Provincial Police Det. Sgt. John Armit, who’s also a team leader with the Canadian Anti-Fraud Centre, said rental scams are picking up. From 669 in 2017, reports of rental fraud increased to 946 last year. Cases in 2020 amounted to more than $729,000 in losses, the CAFC said, with 499 people affected by the ruse.
“When it comes to the nice summer weather, fraudsters will start targeting desirable rental properties,” Armit said. “[People] don't want to lose out on these properties so they'll transfer the funds only to find out that property was never to be rented.”
To protect themselves, he encouraged people to see the property for themselves prior to their stay, or ask the landlord for proof of ownership.
Tony Anscombe, who works at internet security company ESET, said fraudsters have been capitalizing on the fact that because of pandemic lockdowns, people are less likely to physically check out a property or meet the homeowner beforehand.
Anscombe urged would-be renters to just look on official property rental sites instead of engaging with small ads they see on social media. Anything that looks too good to be true or is being offered within a narrow window of time, he added, should be regarded with suspicion. People can also use reverse image searches to check if photos on a listing they’re evaluating have already been used in other postings or ads.
Sending money for rental properties through e-transfer is not advisable, he added, as the fact that there’s no holding period means the recipient will receive the money in their bank account right away, with virtually no recourse to recover the money once it’s been sent.
