San Francisco Renter Reveals the Elaborate Scam That Cost Him $18K

As more home renting and buying processes move online and fraudsters become more sophisticated, some potential tenants can find themselves in nightmarish situations.

For one San Francisco resident, that nightmare was the loss of over $18,000.

Alvin Tran, a product designer for a local startup, came across identical listings for an apartment in the city’s Duboce Triangle neighborhood on Zillow and Craigslist. After reaching out to the seller on both platforms, the contact from Craigslist responded, inviting Tran to an open house.

Because the listings on Zillow and Craigslist were identical, including the same images, Tran believed the seller had simply cross-posted the listing to both platforms. However, the man he was speaking to from the Craigslist listing was merely impersonating the property owner.

“I’ve been in San Francisco for five years, and I’ve moved around a few different apartments. I’ve actually found two apartments in San Francisco from Craigslist, so that’s why I thought that Craigslist is pretty legit and why I was OK looking up apartments on there this time around,” Tran tells Realtor.com®. 

At the open house, Tran met the legitimate property owner. However, because he was under the impression that they were in communication already, Tran did not take the time to confirm contact information in person.

The rest of the communication with the fraudulent seller seemed normal, with no glaring red flags.

“They were pretty legit. They were not moving fast; they were not pushy. They even asked me to submit a letter expressing my interest,” Tran says. “They took their time, and there were multiple steps in between. So I couldn’t really think of any red flag.”

On Monday, July 27, Tran made a wire transfer to the supposed seller for the amount of $18,600, which covered the first and last months’ rent, as well as a security deposit.

For the rest of the week, Tran and his assumed landlord communicated normally, discussing moving logistics and setting up utilities. They planned to exchange keys on Thursday evening.

When Tran arrived at the apartment at 6 p.m. on Thursday, no one was there to meet him.

“I texted, I called, I rung the doorbell, and I didn’t hear anything. I waited for 20 minutes, and I didn’t hear anything,” Tran recalls. “And at that time, I was still even holding out for hope. I was, like, maybe something happened, maybe they got into an emergency, maybe there were crossed wires. So throughout that night, I was still hopeful.”

By Friday morning, it was evident that Tran had fallen victim to an elaborate scam.

Tran initially took to Reddit to share his story and seek advice. Even the often-critical forum users were sympathetic, acknowledging that this elaborate scheme would be hard to catch.

“Wow. Out of all the scams I’ve read on this sub, I think this is the first one I’ve read that would’ve worked on me, too. I’m sorry,” wrote one user.

Others shared similar stories, some having been the potential tenant and others having their properties listed on Craigslist by scammers.

“I’m a landlord in sf with an active listing and someone did the same thing, posting an illegitimate Craigslist ad, with the showing time and details,” a property owner on the forum site wrote. “I figured out who was committing the fraud by the messages I sent.”

“Never wire money! This happened to me with a rental scam but I wrote a cheque. We signed a lease and got keys that didn’t work and they ghosted,” another user shared their story. “I was able to get my money back because I wrote a cheque and had a copy of the lease by disputing it with my bank.”

How renters can protect themselves from scams

There are a number of ways for renters to protect themselves from scams and ensure the person they are speaking with has the authority to rent out the property. 

“In my experience, the most dangerous real estate scams are no longer the obvious ones featuring fake photographs or poorly written advertisements,” real estate broker and CEO of Florida Dreams Realty Group Adriana Montes tells Realtor.com.

“Sophisticated scammers use real addresses, copy legitimate listings, impersonate licensed professionals, and may even direct prospective tenants to genuine open houses or self-guided tours.

“A real open house proves that the property exists. It does not prove that the person texting you has the authority to rent or sell it,” Montes adds.

Looking back at his experience, Tran wishes he had taken the extra step to confirm the legitimate owner’s contact information, even though it seemed weird—and he recommends that all other potential renters ask extra confirmation questions, as they could uncover fraudulent situations.

“As a potential tenant, I would go the extra mile to confirm that information. Even confirm where you saw the listing,” Tran advises. “Because if I had even mentioned Craigslist, I feel like things would have fallen apart.”

Montes recommends independently verifying that you’re speaking to the correct person by contacting the brokerage or management company in charge of the property.

For a private landlord, compare their identification with county property records. Any discrepancies with their identity and the payment recipient is a red flag.

Andrew Gardner, founder of Leap Properties in Houston, says to be wary of urgent requests.

“If someone is pushing you to send a deposit immediately because five other people supposedly want the property, slow down and take a beat,” Gardner tells Realtor.com. “A legitimate deal will give you plenty of time to verify who owns the property and who you're actually sending money to.”

Legitimate payments will never be requested through cryptocurrency, gift cards, or, in most cases, wire transfer, Montes says. Any last-minute changes to wiring instructions should be an immediate red flag and presumed fraudulent, she explains.

Although he has yet to recover his funds, Tran is sharing his story publicly to ensure others are informed of these elaborate schemes and take precautions to avoid them.