A new wave of sophisticated rental scams on social media platforms like TikTok and Instagram is deceiving prospective tenants and costing them hundreds of thousands of dollars. Scammers are hijacking the identities of legitimate real estate agents and using real apartment videos to lure victims with deals that appear too good to be true.
The Federal Bureau of Investigation (FBI) has noted a significant increase in complaints related to these schemes. Fraudsters create convincing but fake social media profiles, post videos of desirable apartments at impossibly low prices, and then demand upfront fees for applications or tours before disappearing with the money.
Key Takeaways
- Rental scams on social media are becoming more common, using real videos and agent identities.
- Scammers typically demand upfront "refundable" application fees, often around $350, before vanishing.
- The FBI reported over 130 real estate complaints linked to social media in early 2023, with losses nearing $600,000.
- Legitimate real estate agents are also victims, facing reputational damage from identity theft.
- Renters are advised to verify agent information independently and never pay for a property they have not seen in person.
Anatomy of a Modern Rental Scam
The process often begins with a compelling video in a user's social media feed. An attractive apartment in a major city is advertised for a fraction of the market rate. For renters in competitive markets, the offer is almost irresistible.
Jenny Diaz, 28, found what she thought was the perfect Manhattan apartment through an Instagram post her friend shared. The profile had over 27,000 followers, adding a layer of credibility. "It’s so hard to find apartments," Diaz explained. "I was using all sorts of apps but they get taken so quickly."
After messaging the account, which claimed to be run by a real estate agent, she was asked for her personal information and a $350 refundable application fee to secure a tour. She did her due diligence, looking up the agent's name, and everything seemed legitimate. After she paid, she received a confirmation email, but then the communication stopped.
"They stopped responding to me and my heart just dropped. I knew it instantly and I couldn’t believe it," she recalled.
Sophisticated Deception Tactics
These are not simple scams. Fraudsters use the real names and license numbers of established agents. If a potential victim expresses doubt, the scammer might send a doctored photo of a real estate license or direct them to a professionally designed but fake company website, complete with stolen agent photos and contact details.
The Rising Financial and Human Cost
The financial impact of these scams is growing rapidly. Data from the FBI's Internet Crime Complaint Center reveals a disturbing trend. In just the first five months of this year, the agency received more than 130 complaints involving real estate and social media, with victim losses totaling approximately $600,000.
This figure is on pace to far exceed the previous year's total. In all of last year, there were 150 similar complaints, but the losses were substantially higher at around $1.5 million, indicating that while the frequency is increasing, the average loss per incident may vary widely.
FBI Data: In the first five months of the year, social media rental scams led to reported losses of nearly $600,000 from over 130 complaints.
Beyond the financial loss, the emotional toll on victims is significant. The experience leaves many feeling violated and distrustful, complicating an already stressful apartment search.
Real Estate Agents Caught in the Crossfire
Prospective renters are not the only victims. Legitimate real estate professionals are having their identities and professional reputations stolen and used for criminal purposes. Shane Boyle, a broker with Compass, is one of dozens of agents whose name and photos have been used by imposters.
"I have a pit in my stomach looking at that. I mean, it’s horrible," Boyle said while reviewing fake profiles using his information. He often receives angry calls and messages from people who believe he scammed them, only discovering his real contact information after they've already lost money.
Furious comments have appeared on his actual social media accounts, with messages like, "You need to rot for what you’ve done." The emotional burden of being falsely accused is heavy. "I try to block that out, actually. That’s gonna get me a bit emotional," he admitted.
Stolen Content Fuels the Fraud
The content for these scams is often stolen directly from popular real estate accounts. Mike Bussey, another Compass agent who runs the popular "Real NYC Apartments" accounts on TikTok and Instagram, has had his videos systematically downloaded and reposted by scammers.
Fraudsters take his virtual apartment tours, add their own voiceovers or text, and list the properties at absurdly low prices. In one instance, a video of a luxury apartment renting for $12,000 per month was reposted on a fake profile with a price tag of $1,700.
Bussey shared a personal story about the scam's reach: "My mother had shown me the video and gone, ‘Mike, this is such a good deal, I’ll rent it myself.’ And I was like, ‘Mom, that’s not real.’" He had to explain that his videos were being stolen. "The thing that broke my heart is my mother’s a very intelligent person, so she fell for this. Imagine how many other people have fallen for this."
A Never-Ending Battle for Platforms and Agents
Both Meta (parent company of Instagram) and TikTok state they are actively working to combat this type of fraud. After being alerted to specific scam accounts, both companies took them down. TikTok reported proactively removing 97% of content violating its impersonation guidelines in the first quarter of the year.
However, for agents like Bussey and Boyle, it feels like a losing battle. Bussey has reported over 1,000 stolen videos and even hired someone to help manage the takedown requests. Boyle describes the situation as a constant game of "whack-a-mole."
"Let’s say I put down one today. If I report it to whatever social media channel, maybe two goes up the next day," Boyle said.
How to Protect Yourself from Rental Scams
Vigilance is the best defense for renters navigating the online housing market. Real estate experts and law enforcement officials offer several key pieces of advice:
- Trust Your Instincts: If a rental price seems too good to be true, it almost certainly is. Research comparable rental rates in the area to get a sense of the market.
- Never Pay Before You See: Do not send money for an application fee, deposit, or first month's rent for an apartment you have not toured in person.
- Verify the Agent: Do not rely on contact information provided in a social media profile. Independently search for the agent's brokerage firm and call the official number to confirm their identity and the legitimacy of the listing.
- Be Wary of High-Pressure Tactics: Scammers often create a false sense of urgency, claiming other renters are interested, to rush you into making a payment.
- Know the Local Laws: In many cities, like New York, application fees are legally capped at a low amount (e.g., $20-$50). A demand for hundreds of dollars is a major red flag.
- Report Suspicious Activity: If you encounter a scam or become a victim, report it immediately to your bank, the social media platform, and the FBI's Internet Crime Complaint Center (IC3).
