Fraud and Scams on Craigslist (Part 2) – Avoiding Them

In our first part on scams and fraud that are commonly run in Craigslist, we looked at how to identify them. In Part Two, we will be looking at ways to avoid them. While some of the measures may seem like common sense, it is amazing how many people still may not take them. Many times this can be either because the fraudster puts pressure, either subtle or overt, on the intended victim (as part of the scheme) or maybe they just don’t know what they don’t know.

Use Your Head and Feet

When first conceived, Craigslist was a place meant where local people could place and look for ads. Craigslist takes great strides to ensure, that even though their website is international in nature, that it is local in scope. Keeping this in mind, one of the greatest deterrents to avoiding fraud and scams on Craigslist would be to KEEP IT LOCAL! Craigslist does have FAQs on how to avoid scams that may be perpetrated on their site and the number one thing that they recommend is, surprisingly: “DEAL LOCALLY WITH FOLKS YOU CAN MEET IN PERSON.” They go on to explain that by doing this you can avoid 99% of the scam attempts that are run on their site. Remember, this is not eBay – these are supposed to be local folks advertising to local folks. Insist that the transaction must be local and must be in cash. Above all else this would be the first and foremost thing to keep in mind on ANY Craigslist transaction (as a side note, Craigslist also does offer some personal safety tips on their site as well that are worth a read.

Common Sense

Another common sense rule is that if anyone that you contact or that contacts you wants you to wire money to them (be it for a rental or for a purchase – especially after they “accidently” send you too much money for an item) know that you’d get more out of your money by burning it (at least you get the warmth from the fire it creates). If you wire money to anyone met through Craigslist, you lose. You kissed that money goodbye. Anyone who is asking you to do this is trying to scam YOU out of YOUR money, pure and simple. So, DO NOT, EVER, NEVER, EVER send money to anyone this way… Period! Again, Craigslist, bless their little hearts, states in their avoid scams FAQs: “NEVER WIRE FUNDS VIA WESTERN UNION, MONEYGRAM or any other wire service,” and then they go on to say: “anyone who asks you to do so is a scammer.”

Please do NOT give out financial information about yourself. Identity thieves will have a field day on your dime if you give out your social security number, bank account number, Paypal or eBay account info (legit, LOCAL rental applications being the exception). Craigslist does list some other tips under their scammer FAQs as well. Keeping in line with some of the advice offered there, please be aware that fake cashiers checks and money orders are very common – and you’re the one left hold the bag (unlike credit card fraud, where there is a limit to how much you’re liable, there is no such limit for check fraud.). Also know that Craigslist doesn’t get involved in any type of transactions carried out on their site. They do not offer guarantees, escrow services, handle payments, buyer protection or seller certification. If you get involved in any transaction where a person says that they do, this is an immediate red flag.

In line with keeping it local, AVOID like the plague any deals involving shipping or escrow services – there simply is no way to guarantee such a transaction. The Craigslist scam FAQs goes as far as to actually state: “ONLY A SCAMMER WILL "GUARANTEE" YOUR TRANSACTION.” Keep this especially in mind if you see a car that is being offered out of the area. As a matter of fact, Craigslist actually puts in big bold letters across any page where items are offered for sale: “OFFERS TO SHIP CARS ARE 100% FRAUDULENT.” This goes in line with the advice to keep the transactions local.

Remembering the adage to keep it local that we previously mentioned, if you are considering renting, when you meet personally with the potential landlord, they usually will (as part of the rental process) ask you to fill out a rental application form. Because this (of necessity) will have some of your personal information on it, please be sure to ask potential landlords to see their ID and then record the information found on it. This step will usually weed out scammers having no legit claim to the property. Heads up if they don’t show you the ID or if they just flash it for a second without letting you record the information on it. Another bid red flag goes up if they DON’T want you to fill out a rental application of any kind or ask to check your credit. You may want to also look up the potential rentals property or the landlord's name on the internet and see what comes up (look for the name being connected with the word “scam” or “fraud” and look to see if the property if offered for varying amounts on different sites). It may even be prudent to look up for yourself (in the city or county public records) who exactly is listed as owner for a property and to get a statement (in writing) from the landlord that they are not behind in payments nor is the property in foreclosure. If the person tries to sell you “foreclosure lists” when you are calling about a rental, just hang up, all they want is your money and nothing more. (see: kgw.com and Fraudguides.com)

If you are a potential landlord, again, keep it local. Be wary of persons contacting you via e-mail that are out of the area and interesting in renting the property. Extra red flags go up if the grammar is poor, if they ask you information that is already contained in the ad, if they give an elaborate back story, or if they try to involve third parties. DO NOT EVER let a tenant pay you more than you asked for and then demand a refund – anyone doing this is a scam artist. Be sure to follow up on references and credit checks on your potential renter, and if you rent the property frequently, change the locks between renters.
(see:fraudguides.com/tips, http://www.fraudguides.com/tips2 and http://www.scamalicious.com/)

Final Thoughts

Yes, there are frauds and scams being run on Craigslist, but knowledge is power. Being forewarned is being forearmed. If you keep these Tech Tips in mind, you’re sure to cut down dramatically on your chances of being a victim of a scam or fraud on Craigslist.