New York's housing crisis a goldmine for fraudsters running rental schemes, new data suggests

Rental schemes are on the rise in New York, with complaints jumping 55% over the last few years, according to new data obtained by CBS News New York. 

The findings suggest the state's housing crisis has contributed to a goldmine for fraudsters trying to lure in eager, sometimes desperate, tenants.

An exhaustive process

Allyson Becker thought she found a diamond in the rough on Apartments.com: a one-bedroom unit in Jackson Heights, Queens, for under $2,000 per month. 

In order to see the apartment, the lister told Becker to sign a one-year lease and pay the first and last month's rent to secure "a private showing exclusively for you." 

That set off a red flag. 

"After I stopped laughing that I thought that was stupid, I was enraged because there's probably people who aren't from here and don't know better, and think that's how it works and are giving this guy their money," Becker said. 

Apartments.com said the listing came from a third party, which it has since severed ties with "because they could not control fraud." 

The website would not name the third party or agree to an interview with CBS News New York, but a spokesperson said the listing was dropped the day Becker got that offer. 

"It was never a real apartment"

Robert Swiderski, a licensed broker and CEO of RealTegrity, says suspected scammers post fake apartments online to pressure renters into sending money or sensitive information. 

"Unfortunately, it has become rampant," Swiderski said. "Because it's such a shortage of rental listings, people have been paying the person on the other end of the phone a deposit or first month's rent just based on a virtual tour without actually seeing the apartment in person, and then they come to find out that it was never a real apartment to begin with." 

Data from the New York Department of State shows a 55% increase in complaints about suspected rental scams over the last few years.

There were 378 complaints recorded in 2023, followed by 568 in 2024 and 589 in 2025. So far, 2026 is on pace with the last two years. 

Swiderski recommends renters ask realtors to prove they're licensed before going forward. 

"If you're not sure if the person you're actually talking to or meeting with is a real agent, request to see their pocket card. They have to show it to you," he said. 

The Federal Trade Commission said Americans have reported 65,000 alleged rental scams and about $65 million in losses since 2020.

"It's predatory" 

Becker said she's seen other suspicious listings like the Jackson Heights apartment on Apartments.com, Redfin and Realtor.com, which said it also removed a listing and blocked the lister after Becker notified them. 

Becker wants online rental marketplaces to do more to verify listings before they go live. 

"It's predatory. It's awful. You're taking advantage of people at a time when they really need help," she said. 

Realtor.com also would not agree to an interview, but said it has safeguards in place, including a button that allows users to flag suspicious listings.

Apartments.com has a similar feature.