How to avoid roommate scams

Types of Scams: 

Overpayment Scams:

One common scam involves someone posing as a potential roommate who offers to pay a large sum upfront, exceeding the agreed-upon amount. They request you to refund the excess funds, only to find out later that their initial payment was fraudulent. For example: A roommate listing offers an apartment for rent at $800 per month. The person behind the listing sends you a payment of $2,500, claiming it covers rent, the security deposit, and moving expenses. They ask you to refund the excess amount of $1,700, but later you discover their initial payment was fraudulent. This leaves you responsible for the refunded funds and without a genuine living arrangement.

Identity Theft:

Scammers may try to obtain your personal information, such as your Social Insurance Number (SIN) or bank account details, under the guise of performing a background check. Sharing this information can put you at risk of identity theft or illegal activities.  Never give out personal information including bank account details, SIN, credit card number or other information that could be used to steal your identity.

Fake Listings:

Be cautious of “too good to be true” looking for a roommate rental listing with below-market prices. Scammers create these fake listings, enticing potential roommates to provide a deposit or application fee without allowing them to visit the property or meet in person.  There should be no exchange of money without seeing the property in person first!

Absent Landlord/Agent:

Scammers may claim to be overseas or unavailable to show you the property in person. They might ask for payment upfront or request personal information without legitimate proof of ownership or authority.  This is always a red flag and you and your roommate should never provide any money or information if a person is unavailable to show you a property in person.

Unrealistically Low Rent:

If a rental price seems too good to be true, it probably is. Scammers often use unrealistically low prices as bait!

Request for Upfront Payment:

Exercise caution when asked to make a payment or deposit before viewing the property or meeting the landlord in person. Scammers may insist on wire transfers or prepaid gift cards, making it difficult to trace the transaction. Payment should always be made after an agreement is signed and should be made through secure methods such as cheque, PayPal or e-transfer.  Never pay in cash without receiving a written receipt or through untraceable methods of payment such as a wire transfer.

Poor Grammar and Spelling:

Pay attention to the quality of written communication in the listing. Scam listings often have poor grammar, spelling mistakes, or use generic templates, indicating a lack of professionalism.