A VRBO phishing scam with an unhappy ending

February 16, 2012

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://pulse.yahoo.com/_EUTS4TUFMGQZAZLOWGCYXX7D6E Roger M

     I suspect that the OP may be getting all her friends and friends of friends to come to this website and vote yes.

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

    The problem is that even if you prevented blind transfers, certain countries tend to have a culture of lawlessness and the criminals would still be able to obtain the funds.

  • Anonymous

    I think they can try but probably will not be able to help. That money is long gone. Did Rieben try to contact the owner by telephone. If she did then she would have been told that she had to use the management company. If she didn’t get told that, then she should suspect that it is a bogus number probably obtained by scamming e-mailer. People turn their properties over to pros to take of them and pay them to do this and the management company makes money for its efforts. Unless you know an owner personally and they agree to rent you the property, you could probably pay when you get there if you know them real well. I have actuall stayed in a property free of charge because the owner wanted me to. The management company didn’t complain but they did not have it rented at that time either.

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

    And keep in mind that even if the recipient has to provide ID, that STILL wouldn’t help the situation.  Fake IDs in Nigeria are commonplace.  Any scammer can mock one up, tell the victim to wire it to Mr. Robertson, then walk into any Western Union in Lagos with the fake ID of Robert Robertson and the MTCN number, get the cash and disappear into the dust.  Nobody is going to go look for him.  Law enforcement in Nigeria certainly isn’t!  Being a “guyman” (internet scammer) in Nigeria is a respected profession.

  • Anonymous

    @scapel:disqus You are absolutely correct. We have a condo that is rented through a management company. There are actually 4 types of rentals:
    1) Personal – used for by our family
    2) Personal (friend/relative) – no charge rental for use by our friends and family. The cleaning fee is higher than #1
    3) Rental (owner referred) – lower commission rate (for friends who rent our unit but goes through the management company)
    4) Rental (non-referred) – for everyone else. Has the highest commission rate
    An owner “can” bypass the management company, and its allowed in our contract. However, it is intended to be for family and close friends. No way I would trust a stranger that contacts me directly without going through the management company.

  • Anonymous

     @Jeanne_in_NE:disqus Then there are some like me which for unknown reasons the poll never shows up! It only happens on my home computer, but to this date, I have never figured out why!

  • Anonymous

    Never wire money to someone you don’t know.  Period.

  • Anonymous

    HAHA!!!

  • Anonymous

    Right on, I agree. I noted No but I don’t usually comment because I read the comments first and more often than not, what I’m thinking has already been said  ~~ many times over.

  • http://pulse.yahoo.com/_UXMZPQ4FW5NIVC526OBXHVUJBA Decent American

    she lost all credibility when she tried to pull a fast one in the management company. Would Elliott intervene if she had purchased a plane ticket from some guy in the street? Come on, she got greedy and her own greed got her scammed. 

  • whatpop

    Sorry, Tania Rieben has “paid the price” for trying to undercut the (legitimate) rental agent…wouldn’t VRBO be just thrilled if she had? Oh, well, nice try!

  • Dave_Z

    “But if it wants to keep its reputation”

    What reputation would that be, much more to keep? You posted a story a few days ago, someone complained at your not helping her, you apologized to that person and explained what happened, yet you still have your hard-earned reputation, right?

    Frankly I’m disappointed that seemingly more users voted yes than no, just as I’m sure some (if not really many) are disappointed that others here won’t agree with them at how arguably wrong VRBO was not to help the OP. But like others here, I’m really skeptical as to the poll’s results since it turns out I can also indeed vote more than once.

    I too don’t know what else VRBO can do for the OP other than what they’ve already done. And yet, they still get dinged for it?

    Of course, you can’t please everyone.

  • Dave_Z

    “But if it wants to keep its reputation”

    What reputation would that be, much more to keep? You posted a story a few days ago, someone complained at your not helping her, you apologized to that person and explained what happened, yet you still have your hard-earned reputation, right?

    Frankly I’m disappointed that seemingly more users voted yes than no, just as I’m sure some (if not really many) are disappointed that others here won’t agree with them at how arguably wrong VRBO was not to help the OP. But like others here, I’m really skeptical as to the poll’s results since it turns out I can also indeed vote more than once.

    I too don’t know what else VRBO can do for the OP other than what they’ve already done. And yet, they still get dinged for it?

    Of course, you can’t please everyone.

  • drik

    i suggest alwaysonvacation.com as they give best owners…without any middle man

  • http://profile.yahoo.com/N3QFEUIZITL6VMEYB2A6EPPLEE KAY

    ok if its a direct deal, dont understand why shd vrbo be involve.

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