The Federal Trade Commission released new data showing that rental scams have cost American consumers approximately $65 million since 2020, with nearly 65,000 reported cases of fraudulent rental listings targeting unsuspecting renters.
According to the FTC's latest Consumer Protection Data Spotlight, these scams typically involve fake rental listings that appear legitimate by copying information from real properties but feature the scammer's contact information instead of the actual property owner or management company.
Social media platforms have emerged as the primary hunting ground for rental scammers. The FTC found that approximately half of consumers who reported rental scams in the 12 months ending June 2025 said the fraudulent scheme originated from a fake advertisement on Facebook. Craigslist also remains a significant source of these deceptive listings.
Young adults face disproportionate risk from these schemes. The analysis shows that people ages 18 to 29 were three times more likely than other adults to report losing money to rental scams. This demographic's reliance on online platforms for housing searches and potentially limited experience with rental markets may contribute to their vulnerability.
The FTC identified several common tactics employed by rental scammers. Many fraudsters pressure potential renters to provide money upfront before allowing them to see the property in person, a practice that legitimate landlords typically avoid. Scammers also exploit consumers' desire to appear creditworthy by requesting screenshots of credit scores or directing victims to affiliate websites for supposedly low-cost credit checks that actually enroll consumers in expensive membership services with recurring fees.
Identity theft represents another serious component of rental scams. Fraudsters often collect sensitive personal information including Social Security numbers, driver's license details, and pay stubs under the guise of processing rental applications. This information can then be used for identity theft or sold to other criminals.
The financial impact extends beyond the immediate rental payments. Consumers may lose security deposits, first month's rent, and application fees while also facing potential identity theft consequences that can take months or years to resolve. The average loss per incident varies, but the cumulative $65 million figure demonstrates the significant economic harm these schemes inflict on American consumers.
To combat these scams, the FTC recommends several protective measures for potential renters. Consumers should research rental addresses online to verify whether the same property appears on multiple sites with different prices or contact information, or if it's listed for sale rather than rent. Such discrepancies often indicate fraudulent listings.
The commission also advises consumers to avoid sharing personal information until they have agreed to rent a specific property and met with the legitimate property owner or manager. Additionally, renters should research typical rental prices in their target areas, as listings priced significantly below market rates often signal potential scams.
The rental market's increasing digitization has created new opportunities for fraudsters while making it more difficult for consumers to distinguish legitimate listings from fake ones. High-quality photos and detailed property descriptions can be easily copied from legitimate listings, making fake advertisements appear authentic.
Property management companies and legitimate landlords have also been affected by these scams, as their listings are frequently copied and used in fraudulent schemes. Some property owners report having to deal with confused potential renters who believe they have legitimate appointments to view properties that aren't actually available for rent.
The FTC's analysis comes amid ongoing concerns about housing affordability and availability in many American markets. Tight rental markets with low vacancy rates and high demand create conditions where consumers may feel pressured to act quickly on seemingly good deals, potentially bypassing normal verification steps that might reveal scams.
Law enforcement agencies continue working to address rental fraud, but the anonymous nature of many online platforms and the ease with which scammers can create new accounts make prosecution challenging. The cross-jurisdictional nature of many schemes, where scammers may operate from different states or countries, further complicates enforcement efforts.
Consumer education remains a key component of fraud prevention. The FTC encourages consumers to report suspected rental scams through its Consumer Sentinel Network, which helps track fraud trends and assists law enforcement agencies in identifying patterns and potential targets for investigation.
As the rental market continues to operate increasingly online, consumers must remain vigilant about verifying property listings and protecting their personal information while searching for housing.