Craigslist house rental scam hits Indiana

MUNCIE – The deal sounded good. Maybe too good: A 2,200-square-foot home with three bedrooms, two bathrooms and a new roof, for rent for $750 a month in a quiet westside Muncie neighborhood.

The deal was too good to be true, as people responding to the Craigslist ad discovered: Not only is the house not for rent, but the online ad wasn't even posted by the owner.

That revelation came too late for one woman who already wired money to a scam artist.

The nature of the scam unfolded after Amy Hagans, the actual owner of the house on Muncie's west side, discovered that photos of her home were being used to steal money from would-be renters.

Hagans is still dealing with the scam artist's work.

"We've had people by the truckload come by our house, looking in our windows," Hagans told The Star Press. "We had to put a sign on the door saying it's not for rent.

"It's just unbelievable to me," she added.

Equally puzzled is Muncie resident Patty Costa, who inadvertently alerted Hagans to the scam by showing up at her door to see her newly rented home.

Costa had already wired $275 to a Walmart in Arkansas, where it was picked up by a woman Costa had communicated with only through text messages.

"We'll never get the money back," Costa said Wednesday.

'Not a good sign'

The scam took place within the past few days, after Hagans' house was listed for sale — legitimately — on a Muncie real estate company's website. Hagans believes the scam artist took information and photos from the real estate company's listing and used them in the bogus Craigslist ad.

This type of rental scam is increasing nationally, online reports say. Police agencies usually hear about the scams from people who have followed through on Craigslist ads and sent money to rent the property.

In this case, Costa was looking for a rental house in Muncie and made contact with the person that placed the ad on April 23 and sent the $275 — half the deposit — the next day.

Costa said the people who stole her money said they could communicate only through email and text messages because they were deaf.

Muncie Police Chief Steve Stewart said the circumstances raised a number of red flags.

"If someone is only wanting to talk to you via text message, that's not a good sign," Stewart said.

The Federal Trade Commission warns that "the surest sign" of a rental scam is a request to wire money. "Wiring money is the same as sending cash," the government agency warns. "Once you send it, you have no way to get it back."

Dog, cat and scam-friendly

It's hard to determine how widespread the scam is locally, but when Hagans mentioned her situation to a co-worker, they told her about another local woman who had experienced the same scam.

Craigslist — an online marketplace of classified ads that's used by people to sell goods and services but has prompted complaints nationally because of criminal use that can spring from its ads — refused to take down the listing, Hagans said.

The listing — which noted that the "rental" property is dog-and-cat-friendly — was still active this week when checked by The Star Press.

The Craigslist ad seeks email responses to gibsonlamy@gmail.com. Using a private email address, a Star Press reporter sent an email to that address on Wednesday. The conversation with the scam artist is included along with this story.

"We've seen a huge increase in Craigslist scams," Muncie Police Sgt. Seth Stanley said. Stanley said people should avoid becoming victims by conducting business with reputable people they know or asking them to complete their transaction at Muncie City Hall.

"If they're not willing to meet you at a police station, it's probably a scam," Stanley said.

Stanley encouraged victims of such scams to contact the MPD Criminal Investigations Division office at 765-747-4867.

Costa said she spoke to police in Arkansas, who said they would review Walmart security camera footage to see if they could identify the person who picked up the money.

Hagans — who said this week she hoped the scam didn't have an effect on her efforts to sell her house — said she was surprised that people not only took the Craigslist ad at face value but sent money to the scam artist.

"People were renting it without even looking inside," she said.

Other than through Hagans' windows, that is.

Contact Keith Roysdon at 765-213-5828 and follow him on Facebook and Twitter.