35 people in Kitchener, Ont., out total of $40K, say police about one of latest online rental scams

Despite being aware of the many online rental scams in Canada, Suraj Thomas of Kitchener, Ont., says he was stunned to learn he can now be counted as one of the victims.

Police in Waterloo region saidat least 35 peoplehave been identifiedas victims of a recent online rental scam in the city, resulting in a total loss of $40,000.

In Thomas's case, his lease agreement was coming to an end when he saw a Facebook Marketplace ad in early August for a two-bedroom, one-bathroom apartmentin the Laurentian Hills area of Kitchenerthat wasgoing for $1,900 a month.

Thomas texted the phone number in the ad and was given a contact number for someone described as the owner. She got him in touch with someone who was called the current tenant, who ended up showing him the apartment. CBC is not naming the owner and tenant as they haven't been verified as the ones who spoke to Thomas.

Planning to move into the apartment with a friend, Thomas viewed it in person twice. The supposed tenant told him he had to give up the apartment because he was moving to Nova Scotia for a job.

Thomas agreed to take the leaseand after sending the requested documents including photo identification, pay stubs, credit scores and a credit report he transferred $4,100 to the apparent owner for the first and last month's rent deposit.

'Something bad was about to happen'

The morning Thomas and his friend were set to meet who they thought was the unit's owner to receive the keys, they tried calling and messaging her once they arrived, but no one answered.

"Then we had a feeling that something bad was about to happen," said Thomas.

They also attempted to contact the apparent tenant, but again, no response. That's when they met a building representative who said they had been scammed.

"He told us the whole thing yesterday there were like 15 people here. They were all trying to move into the same apartment, the same unit," Thomas recalled.

"We were absolutely shocked and devastated. Yeah, we lost our money, but other than that, we don't have a place to go."

CBC News attempted to contact both thealleged tenant and the owner by phone and via social media, but didn't receive a response.

Thebuilding is owned by Greenwin Corp. In an emailed statement to CBC News, the Toronto-based company confirmed it isaware of the scam.

"This incident was driven by bad actors who made attempts to exploit the system," reads the statement in part.

"It was not authorized by Greenwin and has no connection to our business operations. We do not condone what has transpired and remain committed to providing safe and well-maintained housing communities."

The company also notedthe property is "rental only residents must apply through the building, not an individual owner."

Rental scams on the rise

Unfortunately, rental scams aren't new or limited to Waterloo region, with people in various parts of Canada also reporting being conned by or being the subject of fake ads over the years.

They include:

• A mom in London, Ont., who almost lost thousands of dollars.
• An Oakville, Ont., couple who nearly lost $4,400 after being asked for first and last month's rent.
• A Fredericton resident who lost $1,700 for an apartment that didn't exist.
• A man who said his address was used in a fake rental ad, prompting aSurrey, B.C., police warning about rental scams.

WATCH | Surrey, B.C., man on how his address was used by a rental scammer:

Surrey, B.C., resident warns people about Facebook rental scam

21 days ago

Duration 2:00

Babul Miah is warning renters to be extra cautious after discovering his address is being used in a Facebook rental scam. The Surrey resident says he's been approached by several people who say they've lost hundreds of dollars.

Jason Van Kalsbeek of the Waterloo Regional Police Service (WRPS) fraud unit confirmed at least 35 peopledhad filed reports about the Kitchener unit that Thomas tried to rent, but so far no charges have been laid. Thomas told CBC that he's among those who had filed a police report.

Van Kalsbeek said there was a similar scam in the University District of Waterloo multiple people showed up to an apartment thinking they were renting the unit.

Nine victims came forward to police about the Waterloo scam, with a total loss of $10,000. Van Kalsbeek confirmed charges have been laid "but the investigation remains ongoing as there may be more suspects involved."

Despite similarities between the two scams, Van Kalsbeek said, the investigations aren't linked, but attributed the prevalence of such incidents to the advancement of technology.

"They [scammers] play on your emotions. They've very technically savvy and they're very good at what they do. A lot of times, this money is sent overseas and it's hard to prosecute or especially recover any money."

Investigations resulting in arrest

In 2023, The Canadian Anti-Fraud Centre(CAFC) said 508 victims filed reports aboutrental fraud, resulting in over $820,000 in losses.

John Armit, a detective sergeant with Ontario Provincial Police (OPP), works alongside the CAFC.

As part of investigating a rental scam, Armit said that if someone looking for a unit transfers money to the apparent landlord or owner, police can request that a consent form be signed to obtain records from the renter's bank.

"Typically the officers would have to write a production order, which is a version of a search warrant in order to get records from the financial institution," said Armit.

He said it could take 30 to 90 days to obtain the document.That means catching scammers may not happen quickly, due to a lack of resources, said Armit, also noting how complex these cases can be.

"The calls they're [police] taking, the time it takes to obtain records from a production order, the use of globalization of frauds where these scammers could be overseas and having intermediaries that are just opening fake bank accounts, and then moving the money around and moving it through crypto overseas it presents a significant challenge in the way we can conduct our investigations and actually make an arrest."

Tips to avoid being conned

Thomas said the same Kitchener scam posting has since been re-uploaded to Facebook Marketplace, and he's concerned more people are falling for it.

CBC News reached out to Meta for comment about scams on their platforms but did not hear back by time of publication.

Meanwhile, police said, they're working to apprehend the people involved.

"The investigation is ongoing and it's likely the person showing them the room obviously had access to the room or apartment. So they're likely associated with the person who received the money at that time," said Van Kalsbeek.

Nancy Cahill, communications outreach officer with CAFC, offers these tips on how to protect yourself against online rental fraud:

• Schedule a showing to confirm the listing is available.
• Research the market value of the area and be wary of prices that are lower than average.
• Request a lease agreement and review it thoroughly.
• Don't send money to strangers until you're face to face.
• Trust your gut.

Thomas said falling victim to the online scam is even more frustrating because he followed much of that advice.

Since the revelation of the scam, he has found a new place to live, but after connecting with some of the other victims, he knows the situation could have been much worse.

"I feel absolutely devastated but there are other people, they're students. At least I have work but they've lost all their savings."

Listen |Kitchener apartment rental scam leaves dozens of people out thousands of dollars:

The Morning Edition - K-W7:35Kitchener apartment rental scam leaves dozens of people out thousands of dollars

Doing all the right things, only to still be scammed out of first and last month's rent. We hear about a local rental scam that affected more than 30 people, who policesay are out tens of thousands of dollars.