JACKSON — A favorite real-estate scam typically associated with a criminal element in Nigeria has recently been seen in the local papers and on websites and has become common place in Western States and popular vacation destinations where large numbers of rental properties exist.

It’s nothing new, these kinds of scams have been around since the 1980’s. A quick on-line search for “Nigerian real-estate scam” or “419 real-estate scheme” will yield hundreds of stories of lost fortunes and shattered dreams. The internet has made it easier than ever to scam unsuspecting and innocent people out of their hard earned money. “419” refers to the criminal code in Nigeria that many of these scam artists are violating when they attempt to scam you out of your hard earned money.

The 419 scam targets property owners, real-estate companies, and prospective buyers or renters. There are several basic ways this scam can play out.

Targeting prospective renters: Property owners or listing agents are usually totally unaware the properties they have listed for sale are showing up as rentals in the paper or on websites such as Craigslist. The scammers surf the web, pick out listings to use for false listings, strip out contact information and supply an email address or a toll free phone number as the point of contact for the phony listing. The scammers have been known to even use the owner’s or agent’s name in the ad or post to give it legitimacy or claim to be a religious leader, preacher, or clergy member to create a sense of trust that we tend to give to those in that particular profession. Those who respond are told the listing agent or owner is travelling overseas or is in some other way unable to appear in person. The victim is to wire deposit money to an account or pay via Western Union while the “owner” falsely promises to mail the keys to the victim. There are even stories of renters paying thousands of dollars down to a fictitious landlord, only to show up on moving day to learn the property has already been legitimately rented or sold and they have lost their money.

Targeting prospective buyers: The same basic formula is used with buyers as with renters except more false contracts and legitimate looking paperwork is transferred between the “owner” and the buyer via email. The real danger with this particular scheme is the personal information that is mined from this paperwork. Information such as full names, dates of birth, social security numbers, and bank account information can now be used to steal from the prospective buyer’s accounts or to open new fraudulent accounts. This is identity theft on steroids.

Targeting owners and agents: Another variation involves phony replies to legitimate rental or sale offers. The phony “buyer” usually follows the typical online scam pattern of claiming to be out of the country and in need of the agent or owner’s help arranging the finances to return. Sometimes a romantic element is thrown in to further lower the victim’s defenses and add a sense of urgency. A fake cashier’s check or money order exceeding the required down payment amount is sent with instructions to deduct what the agreed upon payment and to wire the excess back to a third party agent the scammer claims has been hired to help. Time pressure is applied to turn the transaction around quickly, before the bank that cashed the fake cashier’s check or money order discovers the fraud. Banks hold the person cashing a fake instrument responsible for the funds, so the victim loses the original funds, any excess funds wired back to the criminal and often their identity as well.

In any of these cases the only winners are the scammers.

How can you determine if it is legitimate or not?

•If the deal seems too good to be true it probably is.
-Research local rental rates and property values; rates too high or too low should be a red flag.

•Pressure to complete a transaction quickly can be a warning sign.

•Emails written in poor or broken English can also be a warning sign.
What can you do to protect yourself, your money, your property, and your identity?

•Deal only with local owners, agents, buyers, and renters. Insist upon at least one face-to-face meeting before giving any personal information or exchanging any money.

•Be very wary of wiring money. Scammers often utilize Western Union or some other money wiring service because it is generally untraceable. The exception to this caution is when wiring funds from one known, legitimate bank to another.

•Carefully read and study every communication and document; get some help if you don’t understand something.

•Slow down, take your time, and don’t get rushed into a bad decision. Missing a good deal might be better than losing big.

•Be suspicious and cautious; your protection is your responsibility.

•Educate yourself on the latest scams and cons. The FBI website is a good place to start. https://www.fbi.gov/scams-safety/fraud

What should I do if I believe I have been the target of a scam?

•NEVER cash or deposit suspicious checks. You will be held responsible for cashing bad checks and may face criminal and civil charges. These checks are often provided at sums in excess of the agreed amount along with instructions to wire back the excess.

•Contact the FBI Internet Crimes Complaint Center and file a complaint.

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•Notify the legitimate property owner or listing agent of the scam. Keep in mind they are also victims of the scam.

•Contact the paper or online entity that hosts the listing and inform them of the fraudulent nature of it and demand that it be removed immediately. If the site refuses to act, report that to the FBI as well.

•Take action to minimize the effects of identity theft. If you have provided bank account numbers, credit card, debit card or social security number data, you’ll need to notify the banks and credit companies involved. Thieves can make much more money stealing your identity than they can by stealing your deposit money.