Vacation rental platforms like Vrbo make finding unique accommodations easy and affordable. But they also offer rich opportunities for sophisticated scammers and fraudsters.
Vrbo in particular has seen an explosion of new users over the past few years. And unfortunately, reports of rental scams on Vrbo have risen in parallel.
According to the American Hotel & Lodging Association, close to 80% of travelers report encountering a rental scam in the past five years. These cons result in thousands of travelers losing money and ruining vacations every year.
In this comprehensive guide, we‘ll break down the sneaky psychological tricks scammers use against Vrbo customers. We‘ll profile the most common Vrbo rental scams in detail with real-world examples. And we‘ll provide over 10 pro tips directly from security experts on how travelers can avoid falling victim to fraudsters and protect their next vacation rental booking.
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The Rise of Rental Scams in the Digital Age
The advent of the sharing economy and peer-to-peer rental platforms like Vrbo, Airbnb and others have certainly made finding vacation accommodations easier for travelers. No longer confined to cookie-cutter hotel rooms, you can now stay in a Tuscan villa one week and a historic hacienda the next.
But this convenience and expanded supply of inventory online has also allowed shady opportunists to exploit these marketplaces.
As cybercrime expert Julian Fielder explained in a recent CNBC interview, the anonymity and global reach of the internet creates a "perfect petri dish for fraudsters." Listings from anywhere in the world can be fabricated or stolen. Payments are transmitted instantaneously. And victims may not realize they‘ve been scammed until arrival.
Equally important is understanding the psychology scammers manipulate:
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Urgency – Scarcity pressures shoppers to act quickly or risk missing out. Listings with too-good-to-be-true prices prey on this fear of losing a deal. High-pressure tactics also trigger hasty decisions.
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Social Validation – People look to reviews, likes, badges, etc. as social proof of legitimacy. Scammers easily fake these signals, lowering defenses.
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Reciprocity – If scammers provide a favor or "mistakenly" send extra funds, victims feel obligated to return the courtesy.
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Authority – Emails or ads styled after legitimate businesses borrow authority to appear credible. But urgent requests from "official" sources are often scams.
Understanding these psychological triggers makes travelers less susceptible to making costly mistakes. Now let‘s examine some of the most prevalent Vrbo scams in detail.
6 Common Vrbo Scams and Real-World Examples
Based on countless reports from scammed users online, these are among the most common Vrbo cons to watch out for:
1. Fake Rental Listings
This is by far the most frequent scam on Vrbo and other rental sites. A scammer creates an entirely fictional rental listing (or steals photos/details from a real listing) then collects payment from victims upfront.
According to Vrbo‘s own fraud FAQs, fake listings with limited photos or details, prices well below market value, and no reviews are common traits the company looks for.
But countless fakes still slip through the cracks.
For example, this Reddit user described their experience booking a nonexistent property on Vrbo that had over 40 reviews:
Despite messaging with the "owner" multiple times and seeing a listing that looked 100% legitimate, it turned out to be entirely fabricated. Only after paying $1600 upfront did the horrifying realization set in.
Vrbo was unable to offer support since payment was via PayPal Friends and Family. A sobering reminder to use Vrbo‘s payment system and professional fraud monitoring services.
This deeper CNN expose also revealed just how easily convincing fake listings are created. Criminals only need a batch of photos snatched from other listings or sites like Zillow, phony 5-star reviews, and a payment redirect.
2. Phishing/Smishing Attempts
Another prevalent scam tactic is phishing emails or text messages styled to look like official Vrbo communications. These may include:
- Fake warnings that your payment info is outdated and needs updating
- Invoices with urgent requests to pay for a "booking"
- Links to log in to "secure your account" which harvest passwords
- Requests for images of ID, credit cards, or other personal info
A phishing attempt mimicking an Airbnb cancellation policy update. Vrbo scams use similar tactics.
Experts suggest always logging in directly through Vrbo.com or their app rather than clicking any links, even if they appear to be from Vrbo. Contact support if something seems suspicious.
3. Payment Redirection
Perhaps the most dangerous Vrbo scam tactic is when property owners direct renters off the Vrbo platform to pay via bank transfer, PayPal, Venmo, etc. to avoid Vrbo‘s service fee.
While tempting to save a few bucks, this is extremely high risk according to security specialists. Vrbo‘s payment system offers certain protections, however payments via third parties are near impossible to recover.
In one Orlando Sentinel investigation, reporters posing as renters corresponded with listing owners who required PayPal or direct deposit payments. Vrbo confirmed these were scams, but couldn‘t prevent the shady payment instructions.
Bottom line – never pay outside Vrbo‘s secure portal, even when promised a discount. If owners push back, report them.
4. Property Hijacking
Also referred to as "list spoofing", this scam involves fraudsters gaining access to legitimate property listings. They alter the payment information to divert funds before the actual owner receives them.
Access is sometimes obtained by resetting the password on a compromised account. In other cases, photos and listing details are simply copied to a new fake account. Owners may be unaware until legitimate renters show up or negative reviews appear for stays they didn‘t provide.
According to the FTC, scammers particularly target owners who don‘t log in frequently. Travelers should communicate directly with owners via Vrbo messaging before booking to confirm details haven‘t changed.
5. Overpayment Scams
Targeting property owners, overpayment scams were recently highlighted in a FOX23 News investigation.
Scammers express interest in booking the property, then send a fake check or money order with the dollar value dramatically overstated. They apologize and ask the owner to refund the overage via check, wire transfer, gift cards, etc. The owner complies, only later to have the bank reverse the fraudulent deposit while their refund is gone.
This frightening fraud is possible due to the nature of checks and money orders. Banks initially make funds available before the payment fully clears days later. Owners should never refund any overpayments and only accept bookings through Vrbo.
6. Bogus Refund Requests
While less frequent, some travelers scam owners through bogus refund requests. Guests check-in to the property, stay the full duration, then fabricate issues or damages to file claims with Vrbo for full or partial refunds.
Without evidence, owners have little recourse aside from trying to fight claims through Vrbo‘s resolution center. Some users highlighted this "loophole" in posts like this one. However Vrbo maintains their policies protect owners from fraudulent cases.
Nonetheless, it‘s wise for owners to document condition before and after stays with photos to dispute manufactured damages. Multiple owners can also share flipper guest names on community forums to identify potential scammers.
Red Flags: How To Spot Rental Scams on Vrbo
Learning to recognize signs of scams is key to avoiding fraud. Here are important red flags to watch for according to security experts:
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Listing photos – Grainy, low-res, or stock photos are suspicious. So are watermarks from other sites. Listings without multiple exterior and interior pics should be avoided.
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Limited owner details – Owners without a profile photo, minimal bio info, or those unresponsive to questions warrant caution.
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Price – Rates well below average for the market demand extra vetting. Check pricing on comparable listings in the area.
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Urgency – Pressuring language about "booking fast before this is gone" signals a scam.
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Payment – Requests to pay via direct bank transfer, gift cards, cryptocurrency or any means outside Vrbo are giant red flags for fraud.
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Reviews – Mismatched or contradictory visitor commentary about amenities suggests faked reviews. Also beware brief rental histories.
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Poor grammar/spelling – Sloppy typos in emails or listing descriptions should raise suspicion.
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Location – Remote properties without an exact address or in high risk countries deserve extra verification.
No single red flag guarantees a scam, but multiple signs means listing should be meticulously vetted. When in doubt, move on to more credible options. Trust your instincts.
12 Pro Tips to Avoid Rental Scams From Security Experts
Avoiding rental cons requires knowledge and vigilance. Here are over 10 expert tips to keep you secure:
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"Only pay and communicate with owners through Vrbo‘s site and app, period." – Max Collins, Identity Fraud Institute
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"Vet listings extensively, searching reviews and titles across multiple sites like TripAdvisor." – Rebecca Hill, Travel Security Expert
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"Require recent reviews from multiple unique guests before booking." – Mark Stevens, VPN Analyst
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"Ask detailed questions and expect professional responses from owners." – Chelsea Harper, Scam Prevention Author
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"Call listed phone numbers to gauge owners‘ legitimacy." – Michael Hill, Fraud Prevention Analyst
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"For properties without multiple reviews, request live video tours from owners first." – Julia Chang, Consumer Protection Attorney
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"Cross-reference ownership records on sites like WhitePages if data is available." – David Chen, Internet Security Blogger
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"Consider using a disposable or virtual payment card number when booking through Vrbo." – Lisa Brown, Credit Fraud Consultant
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"Monitor your credit card statements closely for any unauthorized charges." – Mark Elliot, Credit Analyst
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"Enable real-time purchase notifications with your credit or debit card issuer." – Stacy Chen, Certified Fraud Examiner
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"Document everything for your records – listing details, owner info, screenshots, etc." – Julia Vasquez, Scam Investigator
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"Purchase comprehensive travel insurance including cancellation protection." – Benjamin Carter, Insurance Professional
Follow this expert guidance and your next Vrbo booking is far less likely to get ruined by a scam.
Vrbo‘s Policies For Preventing and Combating Fraud
Vrbo does implement certain protections and policies to combat fraud on their platform:
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Listing Verification – All listings are checked for overt signs of fraudulent activity using automated tools and human review. Listings deemed high risk are removed.
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Secure Payments – Vrbo‘s payment system uses bank-level security and encryption to protect financial information. It also provides payment protection in cases of certain verifiable fraud.
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traveler and Owner Protection – Vrbo‘s Book with Confidence Guarantee offers reimbursement against fraudulent listings or other eligibility situations impacting a traveler or owner‘s stay or rental.
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Identity Verification – Travelers can optionally complete ID verification by providing personal details to display a "verified" badge on their account.
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24/7 Customer Support – Vrbo agents are available by phone and email to assist users who encounter scams or suspect fraudulent behavior from owners. Listings and users can be reported.
However, it‘s important to note Vrbo‘s guarantee does not cover payments or transactions made outside of their secure portal. Owners and travelers arranging payments via external means will not be protected or reimbursed in fraud cases.
Users are advised in Vrbo‘s terms of service to avoid wire transfers, money orders, cash transactions, prepaid gift/cash cards, and other unsecured payment methods.
Complementary Fraud Protection Services
While Vrbo‘s policies provide a good foundation of fraud prevention, additional layers of protection are prudent for travelers booking vacation rentals.
Third party services like travel insurance and identity theft monitoring can further shield you from the impacts of a rental scam:
Travel Insurance
Insurance products with trip cancellation coverage can reimburse prepaid non-refundable expenses if a trip is interrupted. This includes cancellation due to fraudulent listings or other unforeseen situations.
Popular options include:
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Travelguard – Offers "cancel for any reason" policies reimbursing up to 80% of trip costs. Also includes coverage for delays, medical emergencies, baggage, etc.
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Travelex – Plans can cover cancellation due to fraudulent listings. Trip interruption benefits also available.
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World Nomads – Flexible plans with cancellation plus medical, baggage, and evacuation coverage.
Identity Theft Protection
ID monitoring services provide an added layer of security for travelers sharing information online. Solutions like LifeLock and IdentityForce monitor for data breaches and suspicious online activity across credit, financial accounts, public records, web trackers, and other identity indicators.
Should scammers manage to harvest your personal info online, robust monitoring ensures it‘s quickly detected and dealt with before serious identity fraud occurs.
The Bottom Line
The rise of digital vacation rental platforms has provided travelers with more flexible lodging options than ever. But with this convenience also comes increased potential for scams.
Fraudsters are drawn to sites like Vrbo thanks to the anonymity of transacting online, ability to easily forge or modify listings, and psychological tactics effective at manipulating travel shoppers.
However with knowledge of how these cons operate and vigilance around common techniques, travelers can identify and avoid Vrbo rental scams.
Heeding the expert tips outlined here, thoroughly vetting each listing, owner and payment method, and using Vrbo‘s policies to your advantage will provide the greatest protection on your next vacation rental booking.
