An Arizona college student interning in Seattle is out thousands of dollars after becoming a victim of a housing scam. It's a problem affecting more than just college students.
Austin Grad is a sports broadcasting major at Arizona State University. Before moving from Arizona to Seattle, he rented a townhome in the Lower Queen Anne neighborhood. When he arrived, however, he learned that someone already lives there.
He was scammed.
The Federal Trade Commission says this happens to thousands of people annually.
“The big lesson is, do not book a place unless it’s through a legitimate company -- unless you’re able to see the place and meet the person you’re booking from,” Grad said.
Here’s how it played out. While still in Arizona, Grad searched for apartments in Seattle on Craigslist.
“Most people on Craigslist don’t answer your calls and (the alleged renter) did, and he was sending me everything I was asking. He answered all my questions,” Grad said.
After the apparent renter answered all of Austin’s questions, Austin sent him $2,500 through a wire transfer for first month’s rent and security deposit.
“I even called him 10 minutes before I got here and he ensured me that he was at the residence awaiting my arrival,” Grad said. “Then obviously I got there 10 minutes later, and I started texting him. He wouldn’t respond. Started calling him several times. He didn’t answer, and that’s when I realized I got scammed.”
Charles Harwood with the Federal Trade Commission said a wire transfer should always be a red flag.
“The problem with wiring money is that it can go literally anywhere in the world. The scammer can set up their operation in Africa and claim to be renting a place in Florida or Seattle,” Harwood said.
“But there are a couple other red flags that consumers can watch out for. One is a price that is simply too good to be true. If all the other rentals in the area are renting for $2,000 a month and this one is renting for $1,200 or $1,400 that ought to at least cause the potential renter to ask some questions,” Harwood said. “Other red flags include the landlord not being able to meet with the consumer in person. The landlord being reluctant to provide a contract before they will rent the place. The landlord only being able to provide exterior views of the place.”
Austin’s now trying to get his money back, but that’s unlikely.
“Because the wire transfer is the most common technique used, the scammer can easily be in another part of the world and run the scam and claim to be renting a place in Seattle when they’re not anywhere close to Seattle,” Harwood said. “For law enforcement trying to find that person and actually arrest them or stop them is nearly impossible.”
So this student is now out $2,500, hotel money for a few days, and a new security deposit and rent on another apartment. Now he just hopes his lesson is a lesson for us all.
“Make sure to tour a place first before you give money. Do not give money until you’re able to verify that the place is not occupied and all the documents are legitimate,” Harwood said.
