A VRBO phishing scam with an unhappy ending

Today I’m revisiting a case I first reported on back in November and followed up on last month. It involves Tania Rieben, who had rented a condo in Maui through VRBO.com.

Or at least, she thought she had.

After she wired $4,300 for a six-week rental, the person claiming to represent the property stopped answering her e-mails, and she soon made a stunning discovery: The “owner” was actually a scam artist who had obtained the real owner’s e-mail password and assumed his identity.

VRBO said it wasn’t responsible for her loss, since the owner’s email address had been compromised. But it promised to help negotiate a settlement between Rieben and the condo owners.

And that’s where we left off. But before I get to the rest of the story, I wanted to revisit some of the emails between Rieben and the scammer. I thought it would be instructive to see how these criminals operate.

Scammer: For 1 month the lowest price i can offer you is $4850. And we can work a little bit on it if you are willing to pay the whole month in advance, i say i can cut another 20%. Let me know when you make a decision, by the meantime if you have any other question please do not hesitate to contact me.

Rieben: I’m actually looking to rent this for my parents in law. I think they were looking for something around $3500. I can ask if they would be okay to pay up front but is this price something you would consider? Thanks so much!

Scammer: As i have told you in the previous e-mail, if you pay upfront i can give you another 20% discount, so that would mean around 3800, i am afraid is the best price i can give you. Let me know what you decide.

Anyway, the point is, she fell for it. I might have, too.

VRBO got in touch with the condo manager, who added a few facts. Apparently, Rieben had contacted the condo manager first and was given a higher price. She was also told that the rental management company was the only one authorized to rent the units — in other words, that anyone else saying they’d rent her the condo wasn’t legit.

A VRBO representative said Rieben approached the scammer, believing he was the owner and presumably would undercut the management company with a lower price. And that’s when she was scammed.

Rieben says she believed she was dealing with the real owner the entire time. (And besides, doesn’t it make sense to shop around?)

The property manager told me that she was the only one authorized to rent units AFTER everything was said and done. My whole point was that if she had told me this when I first called her the money would never have been wired.

“At this point,” a VRBO representative told me, “it’s a case of ‘he said/she said’.”

VRBO’s position is that it’s done all that it can. It’s tried to get both parties talking, but last I heard, they were playing phone tag. (The condo owner, according to VRBO, had left messages for Rieben and her father, but Rieben doesn’t recall receiving any messages.)

It pains me that I can’t help Rieben, and others like her, recover their money. But I’m equally troubled by the attitude VRBO and its parent company, HomeAway, has taken about these complaints. They regard themselves as nothing more than the intermediary in the transaction, and appear to be behaving as if they have no obligation toward the guest.

The folks who found their scammy rentals through VRBO and HomeAway obviously feel otherwise, and I can understand why. HomeAway has a commanding market share and it presents itself as a trusted intermediary that stands behind every rental, not some fly-by-night rental operation that’s a half-notch above Craigslist.

Does VRBO have to do anything here? No. It is not legally liable. But if it wants to keep its reputation, it might consider ensuring every one of these phishing cases — including Rieben’s — is resolved.

  • http://profiles.google.com/leeannewrites LeeAnne Clark

    You are 100% correct.  And to take it a step further, the emails from the scammer contain certain markers that he is from West Africa (Nigeria, Ghana, Ivory Coast).  They have a tendency to mix up English phrases in specific ways, and one VERY common one is “by the meantime” instead of “in the meantime”.  Another is not capitalizing “I”, as you can see throughout his emails.

    This was a Guyman, no doubt.

  • Tanya Bidwell

    If I am understanding this story correctly, she went through VRBO first and was told this was the only way to legitimately book the rental.  However, she took it upon herself to go around them and found the owner’s e-mail address, in order to try and secure a LOWER rental price plus not have commissions to pay.  An e-mail that had been hacked.  Then, she fell for multiple e-mails that had grammatical errors/ typos.  Now she expects VRBO to compensate her because she went around attempting to not use them, but blames them because it was VRBO’s listing?  I feel sorry for her that she was scamme, but I do not feel like it is VRBO’s problem, she did not technically use them (again if I am reading this correctly).  I would not hold a newspaper liable if they put an ad in the paper that was a scam (unknowingly).  You have to take personal responsibility for your actions.  She tried to game the system (as she had every right to do) but she cannot come back now and say, I was burned, you pay up, even though I did not follow the rules and I actually tried to prevent you from earning a deserved commission.  This is one of those very valuable (and for her, costly) life’s lessons that she had to learn the hard way.  Hopefully, she learned a leson.   

  • Anonymous

    Karma deluxe.  Fully agree with some of the comments below.  You try to cheat someone, you get cheated

  • Anonymous

    It would be generous if VRBO could give them a week at one of their properties.

    If I were in her shoes I would be hysterical, but I think ultimately, VRBO does not have to do anything for them.

  • Anonymous

    Why would the owner have to scam her when she was willing to rent the place?  I suppose they could have been double-renting the property, but doing that habitually would raise a lot of red flags and probably get the property removed from VRBO which would severely impact the legitimate rental income. It makes much more sense that it was some random scammer who had nothing to lose.

  • Anonymous

    I don’t think you have much to worry about because if think you re-read the details you’ll see this scam took place completely outside of VRBO. She paid this scammer directly and ignored the explicit instructions from the real property manager that all rentals need to go through VRBO. She could have insisted on using PayPal, but undoubtedly the scammer insisted she pay directly and thinking she was getting a steal, that’s what she did. She was right about the “steal” part; it just didn’t go the way she anticipated.

  • Joel Wechsler

    You are of course correct that property ownership in Maui is not predicated on English being your native language. However, given the likelihood of non-native speakers being in the minority and the prevalence of internet scams, at thevery least the OP should have exercised more caution than zsjhe

  • Anonymous

    If she thought she could get around VRBO to avoid a higher fee and that sending a wire is safe then I hope she does not think that doing “it” the first time you will not get pregnant!  Because men don’t lie!

  • Kevin Mathews

    Chris,
    I’m not trying to be mean by my next statement, but is this women completely oblivious to the way the world really works?  Who in their right mind Wires that much money to someone that they don’t even know?
    Almost every reputable company around takes some form of credit card as payment, or at least to secure payment.
    In addition to that, her transaction was not made through VBRO.  Sure, she may have found the listing there, but that doesn’t mean that they owe her anything when she decided to bypass the system and go straight to the seller.
    That would be like someone on E-Bay contacting a seller directly outside the website to set up a deal and then complaining to E-Bay when that person ripped them off. 

    These companies are paid to do a job and with that job comes some amount of risk that they bare the burden on.  With said risk also comes a slightly higher price tag.  Sure you can usually get a better price bypassing the middlemen and going straight to the source.  but you also lose that middle layer of protection as well and that is exactly what happened here.

    Neither the company nor the property owner owe this woman a thing.  She tried to bypass the system set in place and it bit her in the backside.

    I’m not sure why you are torn on this one Chris.  Sure it’s a shame that this woman got scammed.  But that’s a matter for Police, not a Travel Advocate.  Had VBRO scammed her, it would be different, but since she actually went out of her way to NOT be a VBRO customer, I’m impressed that they’ve entertained her complaint this long and not told her to go pound sand…

  • vulturesandhyenas

     The owner could rent the condo through VBRO in a legitimate transaction AFTER the scammer associate took money via the illegitimate transaction.  Note that the victim realized the transaction was fake before showing up at the property. If this worked, the owner would make money from the rental, the owner would get a split from the scammer, the scammer would make money, and the property would be rented one time.  I know that is it sometimes easy to take over an email account. But would not the real owner have noticed this fairly quickly?

    Apparently, this would be a good scam as 2/3 of the responders to my scenario believe it is not likely to happen.

  • http://profiles.google.com/leeannewrites LeeAnne Clark

    That’s just silly.  The reason 2/3 of the responders think it’s unlikely is because IT DOESN’T MAKE ANY SENSE. 

    This reflects very badly on the property…any property that has this type of activity in their history is going to be harder to rent.  In today’s world of social media and user-generated review sites (e.g. TripAdvisor, Yelp), why would a property owner want to set themselves up for getting bad reviews?  They want to RENT their property, not steal money from potential renters.  How does that help them?  It doesn’t – it makes it harder for them to rent their property going forward, so they would LOSE money.

    Using a red-herring argument like “this would be a good scam because 2/3 of the responders believe it’s not likely” invalidates your entire premise.  We believe it’s not likely because…um…it’s not likely.  There’s no logic to it.  And lack-of-logic is what led to this lady getting ripped off in the first place!

  • Anonymous

    I voted no for the following reasons, the first three of which have been mentioned by others:

    1.  While it’s reasonable to be skeptical of statements like “this is the only legitimate way to secure the rental,” that is quite likely the case in a condo rental.

    2.  Insistence on wiring money is a dead giveaway of an unscrupulous operator.

    3.  What is VRBO supposed to do to help resolve the problem?  They didn’t receive the money.  By all appearances, the legitimate owner didn’t receive the money.  So where is their liability?

    4.  While I can’t fault the OP’s attempts to find a lower rate, the fact that the “owner” was willing to operate outside what is likely an exclusive contract tells me the “owner” has no business ethics, either, and is not someone I’d want to do business with.

    I do feel for the OP; I’m not completely heartless!  But the only one with any liability is the scammer, and good luck tracking him down!

  • http://profile.yahoo.com/QMLMUB3H2ZNPFF5HFSO6VR2KKM Mary Ellen

    VRBO and HomeAway should start offering insurance.  There must be a policy out there that would protect both the owner & the renter if they got scammed like this…

  • Dave Williams

    I do not think VRBO or the owner has responsibility for this. The criminal (scammer) does. Saying that VRBO is responsible would be like saying a newspaper is responsible for a phony classified ad.

  • Anonymous

    My statement was meant as a general statement unrelated to this particular scam. It seems to me that if vrbo wants to continue enjoying a good reputation, it would take steps to rectify such problems with their product. There are plenty of sites that take more precautions than vrbo seems to be doing to protect their customers.

  • Anonymous

    Chris, I’m glad you’re not able to help Rieben. She doesn’t deserve it. She tried to save a few bucks by cutting VRBO’s throat. I think it’s wonderful that she got screwed. :-) 

  • http://pulse.yahoo.com/_OEPJGQPIEB75YYDE5CJY6R3VFE Carver Clark Farrow II

    That would require the legit transaction and the  scam to be for the same time frame.  Otherwise the owner would just rent the condo to the second person.

    Makes no sense whatsoever.

  • Anonymous

    Dave, when you said “The criminal”, I at first assumed you were talking about Rieben. Even if trying to cut VRBO out of the loop wasn’t criminal, it was damned sure immoral. I love that she got burned! 

  • Anonymous

    Dave, when you said “The criminal”, I at first assumed you were talking about Rieben. Even if trying to cut VRBO out of the loop wasn’t criminal, it was damned sure immoral. I love that she got burned! 

  • http://pulse.yahoo.com/_OEPJGQPIEB75YYDE5CJY6R3VFE Carver Clark Farrow II

    I have a keychain dongle for one of my brokerage accounts.  The online verifies possession of the dongle, the idea being that password plus dongle equals me. Verifying IP only works to the extent that a second passphrase is used. The problem is that most passphrases can be obtained via facebook.

  • http://pulse.yahoo.com/_OEPJGQPIEB75YYDE5CJY6R3VFE Carver Clark Farrow II

    I have a keychain dongle for one of my brokerage accounts.  The online verifies possession of the dongle, the idea being that password plus dongle equals me. Verifying IP only works to the extent that a second passphrase is used. The problem is that most passphrases can be obtained via facebook.

  • http://pulse.yahoo.com/_OEPJGQPIEB75YYDE5CJY6R3VFE Carver Clark Farrow II

    I concur.  The speech patten strongly suggests  a West African scammer.

  • http://pulse.yahoo.com/_OEPJGQPIEB75YYDE5CJY6R3VFE Carver Clark Farrow II

    I concur.  The speech patten strongly suggests  a West African scammer.

  • http://pulse.yahoo.com/_OEPJGQPIEB75YYDE5CJY6R3VFE Carver Clark Farrow II

    If this was done via Western Union, the chances of catching the perpetrator is basically ZERO.  When you send money via Western Union, it goes into the system an can be picked up anywhere in the world where this is a Western Union office.

  • http://pulse.yahoo.com/_OEPJGQPIEB75YYDE5CJY6R3VFE Carver Clark Farrow II

    If this was done via Western Union, the chances of catching the perpetrator is basically ZERO.  When you send money via Western Union, it goes into the system an can be picked up anywhere in the world where this is a Western Union office.

  • Anonymous

    Pretty hard to protect people who are purposefully trying to operate outside the system. 

  • Anonymous

    Pretty hard to protect people who are purposefully trying to operate outside the system. 

  • http://pulse.yahoo.com/_OEPJGQPIEB75YYDE5CJY6R3VFE Carver Clark Farrow II

    +1

  • http://pulse.yahoo.com/_OEPJGQPIEB75YYDE5CJY6R3VFE Carver Clark Farrow II

    +1

  • http://pulse.yahoo.com/_OEPJGQPIEB75YYDE5CJY6R3VFE Carver Clark Farrow II

    The problem is any insurance policy would undoubtedly require that the OP be a VRBO customer and go through them.  Since the OP chose to bypass VRBO no VRBO insurance policy will cover this scenario

  • http://pulse.yahoo.com/_OEPJGQPIEB75YYDE5CJY6R3VFE Carver Clark Farrow II

    The problem is any insurance policy would undoubtedly require that the OP be a VRBO customer and go through them.  Since the OP chose to bypass VRBO no VRBO insurance policy will cover this scenario

  • Anonymous

    Every single person scammed would immediately contact VRBO, just like this person did. And as the owner, it’s not exactly easy to hide once the authorities start looking into it.  If there were a million rental sites with similar exposure, this sort of scam could work. But there are only a handful of big ones and several of them are owned by the same company. It’d be “rental suicide” on the owner’s part.

  • Anonymous

    Every single person scammed would immediately contact VRBO, just like this person did. And as the owner, it’s not exactly easy to hide once the authorities start looking into it.  If there were a million rental sites with similar exposure, this sort of scam could work. But there are only a handful of big ones and several of them are owned by the same company. It’d be “rental suicide” on the owner’s part.

  • Anonymous

    VRBO might stand behind rentals made legitimately through its site but I don’t see how it is liable (even morally) for a fraud that used its site. The real problem is that the owner’s email account was hacked and the “renter” fell into the trap. Whether VRBO could have prevented or even detected the fraud is questionable.

  • Anonymous

    But wouldn’t the world be a lot more interesting if that “logic” actually worked? 95% of people don’t believe the Bellagio could be robbed Oceans 11 style, thus me and my buddies stand an excellent chance of getting rich this coming weekend.  We’ll be the ones in the SWAT uniforms carrying out all the money!

  • Anonymous

    HAHA – only $5000 your majesty?  :)

  • Anonymous

    But in each case, they emailed the owners and WIRED money – since this is not the standard way VRBO does business, it would be the renter’s fault.

  • http://profiles.google.com/leeannewrites LeeAnne Clark

    Like somebody else said below:  You can’t fix stupid! ;-)

  • http://profiles.google.com/leeannewrites LeeAnne Clark

    99% of these scams involve wiring money via Western Union or Money Gram.  Thjat means you are anonymously wiring money to strangers.  Anyone can pick it up, provided they have the MTCN number generated by Western Union, and the password that you agree upon with the scammer.  They walk into any WU office in Nigeria, give the MTCN number and the password – they don’t even need ID.  They get the money, and laugh all the way back to the internet cafe, where they sit down and try to scam more gullible people.

  • Anonymous

    A recent consumer affairs story on a local tv station spotlighted an elderly couple who wired $150,00 in 90+ transactions, all at the same Western Union.  That store TOLD the couple that they were being scammed.  The couple stopped using that Western Union and went elsewhere.  “Pigs get slaughtered, indeed!”

  • Anonymous

    @Christopher Elliott:  I’m going to echo @Philippa_FRA:disqus  and @google-cec950b8fdbdf4f9ea6f8f2f171f2d69:disqus here.  I’ve pointed out before that your polls can be gamed – all you have to do is reload the website and you’re good to vote again.  There is no way in the world that “Yes” is the legitimate winning vote, especially when one reviews the comments.

    I’m wondering if there isn’t a connection between the “Yes” vote winning, despite the apparent public sentiment for “No”, and Ms. Rieben’s own end-running of VRBO.

  • Anonymous

    Oh – and I tested the poll again, just to make sure.  That’s 5 “No” votes coming from my IP address.  You can subtract the 4 “Chicago” votes.

  • Anonymous

     Given the 100% unanimous “No” comments, I also wonder where all the yes votes are coming from.  I’ve never seen complete unanimity in Chris’s comments section before!

  • Anonymous

    Post 9/11, this does not make sense.
    I know US law requires the transmitting entity to know thy customer.
    So, having an anonymous RECIPIENT does not make any sense.
    The Feds should clamp down on this practice.

  • Anonymous

    Nigeria

  • http://profiles.google.com/leeannewrites LeeAnne Clark

    HAHAHA!!!  That’s funny.  I’m picturing Rieben sitting at her computer voting YES over and over. ;-)

    Maybe it’s the Nigerian scammers voting like crazy?

  • Anonymous

    The only comment I would like to make is that if the above “Scammer” e-mails are verbatim (grammatically and spelling), then to me, that is a huge red flag.  I’m often quite dubious about communications that are less than “professional”.  If one can not write and spell, as simply as this example shows, then  I would certainly question their veracity.

  • Anonymous

    After getting more details, the case looks increasingly sketchy to say the best.

    She tried to run around the VRBO protections to get a cut. So she can’t complain of the consequences.

  • Anonymous

    Well, I said this the first time this story ran.  VRBO needs to:

    1.  Ban ANY landlord from asking for wire transfer, under any circumstances.  If the landlord is to cheap to have a merchant account, or some other secure way of accepting payments, they have no business advertising their property.  If renters know landlords are banned from asking for wire transfers, it might cut this scam off at the knees.  And  …

    2.  Add click through pop-ups warning all users that wire transfers are banned and anyone asking for one is a scammer.  Users would have to click thru the pop-up to get to listings.

  • http://profiles.google.com/leeannewrites LeeAnne Clark

    Make sense or not, that’s how it works.  Walk into any Western Union and ask them.  US law doesn’t do anything about these blind-wires.  If they weren’t allowed, 99% of internet scams would disappear.

    I know whereof I speak. I spent years learning about these types of scams.