Summer’s coming! For many Americans, that means vacation. For many vacationers, that means it’s time to scroll through Airbnb listings in search of the perfect place to stay. But as you’re looking over Airbnb’s wonderful array of houses, apartments, and other accommodations, be aware that some of the listings may be phony.
This isn’t due to any wrongdoing on Airbnb’s part. In fact, the company works hard to stay one step ahead of the scammers who misuse its services. But it’s difficult to identify listings for accommodations that don't exist--or for places that do exist but aren't owned by the people who are posing as hosts. While Airbnb stands behind all bookings made and paid for through its site, scams typically start on Airbnb and then move off the official site, leaving consumers unprotected.
How Do Airbnb Scams Work?
From its modest beginnings as an early part of what was dubbed "the sharing economy" in 2008, Airbnb now commands 8.1% of the American overnight lodging market. It has more rooms for rent than Marriott and Hilton combined. Airbnb rents out 108 million room nights per year. Volume like that is bound to attract scammers determined to take advantage of the company's large customer base.
There are several variations on the fraud, but they all start with a phony but attractive Airbnb listing. Sometimes the scammers will simply copy the images and descriptions of a real Airbnb property that’s so popular it rarely shows up in available listings. This is important because people won’t see two listings for the same property and discover the fraud. Other scammers will simply create a wholly phony listing and use stock photos. Then they sit back and wait for someone to take the bait.
Once someone expresses interest in the phony property, the criminals try to get their victims to pay for it outside of Airbnb’s payment channel. They might suggest that they can give the victims a lower price if they cut out Airbnb and deal with each other directly. Or they might say that the listed property is no longer available, but they just happen to have another place for rent that they haven’t listed on Airbnb yet.
The scammers will also work hard to move the conversation and the transaction away from Airbnb’s private messaging and payment portals and continue them via email and wire transfer. They might ask for a deposit or for payment in full. Sometimes they say the fee is being paid into an “escrow account,” something the real Airbnb does not use.
More sophisticated scammers have created convincing fake sites that closely replicate the real Airbnb. They have URLs that look legit but aren’t, such as www.airbnb.com-request-booking.space/booking/ or www.airbnb.intinerary-booking.com. Some of the fake sites are so clever that they have a phony live chat feature that connects people to someone who pretends to be an Airbnb agent and will reassure the prospective renter that the listing is legitimate. Naturally, these fake sites also have fake payment portals.
Who’s At Risk for Being Defrauded by Airbnb Scams?
Airbnb scams generally concentrate on the middle- to upper-end of the Airbnb price range. They often feature beautiful fake apartments and houses that rent for a lot of money or are the types of places that people typically rent for a week or more. Because many of Airbnb's offerings are whole houses in desirable, high-priced vacation spots, charges for a typical stay at an Airbnb can easily run into the thousands.
People who aren’t very familiar with Airbnb’s procedures are especially at risk of being duped, but experienced users of the site can be tricked too. As is true in many scams, the bad guys deliberately target bargain-hunters. They will frequently list their fake properties at lower-than-prevailing rates to attract people whose excitement over getting a great deal overwhelms their caution and common sense. The stakes are high; one man reported losing $36,000 when he was persuaded to send funds via wire transfer instead of going through Airbnb's site.
While we usually think of the consumer as being the victim in scams like this, Airbnb is being preyed upon too. The trust the company has built with its customers and the success it has had in reshaping the short-term rental market is being taken advantage of by scammers.
The company has gone to great lengths to warn people about these scams. It has automated systems that detect requests by fraudsters to communicate and pay outside of the Airbnb site. These algorithms auto-generate warning emails that are sent to the targeted Airbnb member. Unfortunately, some people don’t heed them or don’t see them until it’s too late. Airbnb also hosts a members community that contains some good discussions about scams and how to spot them.
How Can You Avoid Airbnb Scams?
Airbnb scams are not undetectable. In addition to generally keeping your wits about you before sending money to anyone online, there are some specific steps you can take to avoid being defrauded.
• Make sure you are on the real Airbnb website (www.airbnb.com). Pay attention to the URL of any page that seems to be part of Airbnb.
• The moment anyone suggests to you that you communicate via phone, text, or email, report the encounter to Airbnb. Keep all your communications in the Airbnb messaging system.
• Never wire money directly to someone who says they have a house, apartment, or other accommodation for rent. Pay only through the Airbnb payment portal. Report any request that you do otherwise to the company.
• Look for odd inconsistencies in communications with people who claim to be Airbnb hosts. One consumer had her suspicions aroused when she received several emails from a host who claimed to live in Spain but who was sending emails when it was 3:00 am there. This was an important clue in showing that the supposed host really didn’t live in Spain at all.
• Look through listings for similar properties in similar locations. Are any of the pictures the same?
• Remember the old saying that if something seems too good to be true, it probably is. There are good deals to be found on Airbnb, but be suspicious of properties that list for significantly below market rates.
• Watch out for hosts who attempt to explain why their rental rates are low by saying something like, “I bought this apartment for my daughter to use while she was at school, but she doesn’t go to school there now so the apartment is just sitting there.” Stories like this are often told by scammers.
• Beware of hosts that talk about “Airbnb agents” or “escrow accounts.” There are no such things.
• When in doubt, reach out t0 the real Airbnb. Make sure you do this from https://www.airbnb.com/help/contact_us