As bad actors employ new tech to level up, “we’re finding that becoming human-centric is essential,” said Eric Taylor, head of trust and safety at TurboTenant.
Key points:
- Rental listing fraud is becoming more sophisticated as scammers anticipate and adapt to listing platform safety protocols.
- Major search portals can usually detect fake listings, but Craigslist and social media sites are more vulnerable, with Facebook ads a major source of rental fraud.
- Landlords should consider increasing their scrutiny of listing platforms and routinely check for fake ads for their properties, screening company leaders suggested.
A property management firm is sounding the alarm about rental listing scams, warning that bad actors are becoming more sophisticated in the methods they’re using to place fake rental listings on real estate platforms and convince would-be renters to submit security deposits.
The latest wrinkle, according to TurboTenant CEO Seamus Nally, is that some of these bad actors are recruiting U.S.-based freelancers and gig workers to create fake listings for them — without telling those workers that they are committing fraud. According to Nally, this strategy is an attempt to dodge some rental platform protocols, as a listing posted by someone outside the U.S. immediately raises a red flag.
“What’s changed a lot since I’ve been in this business for the last eight years is that it used to be that fraudsters weren’t really aware of what sort of trust and safety and security checks were happening within the organization,” he told Real Estate News. “Now they’ve advanced to the point where they are at least guessing or getting close to understanding the tools being used.”
A widespread and costly problem
Between 2020 and mid-2025, consumers reported around 65,000 rental scams with losses totaling about $65 million, according to recent research published by the Federal Trade Commission (FTC). This is likely “only a fraction of the actual harm,” the FTC noted, as most scams go unreported.
Half of the scams reported in the 12-month period ending June 2025 originated with a fake ad on Facebook, the FTC said, noting that young adults were three times more likely than those 30 and older to report losing money due to a rental scam.
Fraudsters adapting quickly
Fraudsters’ use of freelancer and gig workers is one of the primary fraud methods Eric Taylor sees as the leader of TurboTenant’s Trust and Safety team. New hacks to safety protocols are popping up at increasing speeds, he said, especially in extremely competitive rental markets like San Francisco.
“It’s moving quicker than it ever has in the past as far as coming up with new attack methods and us coming up with new defenses,” Taylor told Real Estate News, adding that he expects the fraudsters to lean into methods that involve other humans moving forward.
While most fraudulent listings are detected by portals or by companies like TurboTenant that specifically screen for them, Nally said some platforms — such as Craigslist or Facebook Marketplace — are more vulnerable because they are not designed to fight this type of fraud.
More ID verification needed
Nally and Taylor say the problem is pervasive enough that legitimate landlords may need to boost their scrutiny of listing platforms to deter fraud. That could involve more identification verification, which may slow postings.
Taking an extra beat to verify a listing goes against Nally’s tech industry training, where speed and friction minimization was prioritized. But “it’s for the better good and the trust of our entire industry,” Nally said, adding that he expects the use of enhanced verification methods to spread.
Proactive measures landlords can take
With the way technology is heading, Taylor predicts there will be an increasing reliance on authenticity that builds trust. That means proving the property exists, either by allowing potential renters to see the unit in person or by providing a live video showing the house number, the view from inside and other property-specific details.
Real estate agents already embrace this kind of transparency while working with homebuyers and sellers. Listing agents should regularly check online listings, as fraudsters often use pictures of for-sale homes while marketing fake rental listings, and landlords should routinely check to ensure their units aren’t appearing on digital platforms they aren’t using, Nally and Taylor advised.
“As technology advances so quickly, we’re finding that becoming human-centric is essential. I think everyone is becoming more comfortable with being willing to endure some of this friction,” Taylor said. “These fraud schemes fall apart because there aren’t real people on the ground at the property or doing a video walkthrough.”