Sometimes, Craigslist adds up to a scam

When Niki Lunsford moved to Minneapolis from Mexico in May, she needed two things: a home and a job. Lunsford, like millions of others, turned to Craigslist.org. Two months later, she hasn’t landed anything but a surprise credit card charge.

Now Lunsford knows how to tell the dot coms from the dot cons on the popular online classified site.

The relative ease of posting on Craigslist makes it an attractive option for scammers looking for personal information or a quick buck. Anyone can post free classifieds to the website, which attracts 50 million viewers monthly.

While the site itself cautions users against scams and lists specific examples, the sheer volume of traffic makes it hard to police posters, especially at the local level, said Minneapolis police Lt. Brad Sporny, commander of the department’s financial crimes unit.

While Sporny’s unit doesn’t track crime statistics related to specific websites, including Craigslist, Sporny said his unit recently investigated a particularly brazen Craigslist case involving a man who had listed his ex-girlfriend’s home for rent on the site. The man showed potential renters the home and accepted $1,000 rental deposits from interested tenants. It wasn’t difficult to discover who had posted on the site.

In most cases, though, scammers and spammers are able to hide behind the website’s anonymity, leaving people like Lunsford with few options. She reported two fake landlords to Craigslist in early June, but has yet to hear back.

Phone calls and e-mail messages to the San Francisco company and its public relations firm were not returned.

Still, the popular site is obviously aware that problems exist and warns users against them. For example, before viewing job listings, people are automatically directed to a scam alert page, which clearly explains eight examples of common scams. It also includes a “personal safety” tab on its housing rental page. The site also allows users to report potentially fraudulent posts.

People still fall victim to scammers, though.

Lunsford and her boyfriend, Dave Dale, began looking for rental housing in May. One generic post didn’t include pictures, but the couple inquired anyway. The landlord, who identified himself only as “Ricardo,” sent a quick reply. He couldn’t send pictures, he said, because the property had been vandalized in the past. Still, the property sounded ideal — free trash, water and lawn care and the option to pay the security deposit in two installments.

But Ricardo had a condition. He wanted a credit score. He even attached a link to a free credit check website. The couple followed his instructions, paid $1 to process the report and never heard from Ricardo again.

Two weeks later, a $30 charge from the supposedly free credit-check site appeared on their credit card. They reported it to their bank. But it happened a second time. And then a third.

Ultimately, they had to cancel the card to stop the bogus charges. “Some mastermind somewhere came up with this idea of, ‘Let’s rip off the public a little bit more,’” Lunsford said.

But the experience taught her not to respond a few weeks later, when people like “Maurita,” “Amanda,” and “Top Manager” all promised her a job upon the completion of a credit report. “I’m out here looking for a job, and these people are trying to scam me for money I don’t have,” Lunsford said.

Ricardo, Maurita, Amanda and Top Manager are among the countless scammers who profit by using Craigslist ads to drive traffic to other websites under what sound like legitimate auspices.

Sporny said the scheme and others like it have become commonplace, especially during a tough job market when people jump at the chance for guaranteed positions. When Craigslist deals sound too good to be true, they usually are, he said. “Anything that you can possibly think of — and then a little bit beyond that — can be used as a scam.”

July 9, 2010
source: startribune.com