Summer travel season is here, and scammers are out in full force to steal our joy (and our money) through a variety of scams claiming to be related to VRBO (Vacation Rental Book Online) and Airbnb.
Our partners at the local Better Business Bureau had eight calls and two Scamtracker reports just from people that came into our town during May’s festivities that fell for some of these.
The ones they fell for the most were the off-site payment requests and fake listings. Certainly not the type of impression we want to give tourists about Memphis, and we want to make sure none of you fall for these as you travel outside of Memphis this summer and beyond.
Let’s take a look at the most common scams, red flags to alert you, and how to avoid being caught by them.
Off-Site Payment Requests
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Red flag: “Landlord” requests you make payment outside the official platform, such as through wire transfers, PayPal, $cashapp, Venmo or other methods.
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Why it’s a scam:: Payments outside the official platforms lack protection and are difficult to recover.
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What to do: Always use the platform’s payment methods to ensure access to payment protection.
Fake Listings
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Red flag: Listings that are too good to be true or seem suspiciously cheap.
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Why it’s a scam: These properties either don’t exist or are unavailable. You might pay and then arrive to find there’s no booking and your money is gone.
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What to Do: Verify listings by checking multiple reviews and looking for inconsistencies in descriptions and photos.
Phishing Scams
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Red flag: Emails or messages that appear to be from VRBO or Airbnb asking for personal information or directing you to click a link.
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Why it’s a scam: Clicking links can lead to stolen passwords or worse, identity theft, malware, ransomware, etc.
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What to do: Always log in directly to the platform on the official website to check messages and never click on suspicious links.
Hijacked Ads
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Red flag: Legitimate-looking ads with altered contact information.
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Why it’s a scam: You might end up on a fake site, paying for a rental that doesn’t exist, and giving away your credit card information.
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What to do: Verify the property through official platform communications and never trust off-platform links.
Hijacked Emails
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Red flag: Unusual emails from legitimate property owners urging quick bookings, often with a sense of urgency.
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Whyit’s a scam: Scammers may have gained control of legitimate accounts and then direct payments to themselves.
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What to do: Avoid high-pressure tactics and verify directly through the platform.
How to avoid online booking scams
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Do business with reputable websites. Legitimate websites like VRBO and Airbnb have certain policies to protect renters and rental owners. If there’s a problem with your rental, you can open a case, and you may get your money back. If a seller asks you directly to book outside a website, think twice.
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Research the rental property. Do an online search for the owner’s name and/or the property’s address. Look for complaints online, watching for any reports of scams or dishonest behavior.
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Pay with a credit card. Whenever possible, use your credit card to make online purchases. It is easier to dispute fraudulent charges, and you have a better chance of getting your money back if something goes wrong.
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Save any documents related to your booking. Save copies of your receipt and all correspondence with the owner of the property or the rental company.
The consumer good news
The Consumer Financial Protection Bureau (CFPB) recently issued an interpretive rule that confirms that Buy Now, Pay Later lenders are “credit card providers.” Accordingly, Buy Now, Pay Later lenders must provide consumers some key legal protections and rights that apply to conventional credit cards. These include a right to dispute charges and demand a refund from the lender after returning a product purchased with a Buy Now, Pay Later loan. The CFPB launched its inquiry into the rapidly expanding Buy Now, Pay Later market more than two years ago and continues to see consumer complaints related to refunds and disputed transactions. This action will help bring consistency to this market.
“When consumers check out and choose Buy Now, Pay Later, they don’t know if they will get a refund if they return their product or whether the lender will help them if they didn’t get what was promised,” said CFPB Director Rohit Chopra. “Regardless of whether a shopper swipes a credit card or uses Buy Now, Pay Later, they are entitled to important consumer protections under longstanding laws and regulations already on the books.”
Our goal with Wallet Warnings remains the same – to help you safeguard your money. If you have any questions or need any additional information about anything discussed here, please call (901) 222-0206. We are happy to help you avoid scams, fraud, and predatory lenders. You work hard for your money, and we want to make sure scammers don’t get it.
Regina Morrison Newman is Shelby County trustee.She writes the regular Wallet Warnings feature.
This article originally appeared on Nashville Tennessean: Wallet Warnings: Don’t let short-term rental scams ruin your summer
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