We’ve all heard about these, and we’re all aware that they exist, but I recently came across a friend-of-a-friend who was about to be duped into one!

Just when you think that everybody has at least some common sense, you hear a story like the following…

I have always been fascinated with Internet scams!

Not too long ago, a close friend of mine who we’ll call “Bubbles” was duped in an online scam.  Bubbles was trying to rent a room in his apartment and listed it on www.roommates.com to attract potential suitors.  I recall the excitement in his voice when he called me one day to announce, “Dude!  I’ve found a roommate and the best part is – she’s a friggin’ model!  She sent me a picture and she’s gorgeous!  She’s moving to Toronto from Nigeria next month!”

A few weeks later, Bubbles called me and with shame in his trembling voice he said, “I think I really screwed up.”

Bubbles had asked the model for a $1200 payment of first and last month’s rent, and she happily agreed.  She told Bubbles that she had just done a modelling job in London, England and that she had a $2600 cheque waiting for her.  She told Bubbles that she would have the modelling agency forward that $2600 cheque to him, and he could in turn send the difference of $1400 back to her.

And he agreed.

Bubbles put the $2600 cheque through the ATM at his bank, and then withdrew $1400 and sent it to the “the model” in Nigeria.

He came to his senses a couple of days later, and wondered “What have I done?”  The $2600 cheque eventually bounced, and he got the confirmation that he had been duped.

I told my mother this story about poor Bubbles and she laughed and said, “The Nigerian bank scam?  They’ve been running that thing since the 1960’s!  I never fell for it then; how could somebody fall for it now?”

Poor Bubbles…

Yesterday, a colleague of mine forwarded an email from a friend of hers who had received an “unbelievable offer” on a condo from a seller on Craigslist.

I spent four seconds skimming the email before I knew it was a scam.

I won’t include the email correspondence as it’s far too long, but basically the nuts and bolts of the deal was this:
-the property was a 1246 square foot, 2-bedroom, 2-bathroom unit on Bay Street; fully furnished with plasma TV’s and leather couches
-the price was a mere $1200 per month
-the owner was a 48-year-old construction engineer living in London, England
-the owner had happily lived here for five years, but moved back to England
-the owner is “having trouble finding a tenant” so of course she’s offering the property at a low price
-apparently, NAR (National Association of Realtors) will help facilitate the transaction
-the owner wanted $2400 for first/last month’s rent to be put in Escrow, and the keys would be mailed from England

My two favorite quotes from the condo owner’s email:

“The only problem is that I’m the only person who has the keys and I have nobody in Canada that could show you the condo.”

And…

“Obviously we need a way to complete this deal in a safe and fast way for both of us.  The solution is provided by NAR which will handle the payment and delivery of keys.  A friend of mine moved here from California and used the company to resolve the same problem.”

I’m not sure where to begin; this is all so ludicrous.

Okay, first and foremost: If a deal is too good to be true, it probably is!

This condo she is describing would ordinarily rent for upwards of $3,000 per month, yet she is only asking $1,200.

Here are the five main points I’ve identified with this scam:

1.  The “National Association of Realtors” is an American association.  Why is she claiming that they can help?  This woman claims to be in the United Kingdom.  Why would an American association be helping a British woman lease a condo in Canada?  Why aren’t CREA or the UK’s NAEA involved?

2.  The “National Association of Realtors” is not a company; it is an association.  This woman claims that NAR will handle payment and delivery of the keys.  NAR is not a moving company or a real estate firm, nor are they in the service industry whatsoever.  They are not in the business of dolling out keys and taking in cheques.  They are an association of Realtors, and that’s it!

3.  If this woman is successful and intelligent enough to own a $600,000 condo, then why can’t she hire a Realtor in Toronto to help her lease the unit?  Why is she “having trouble” finding a tenant?  Why is she “the only one with keys” and how can she “have nobody in Canada that could show the condo?”

4.  If this unit could rent for $3,000 per month, why would somebody rent it for $1,200?  Did Christmas come early this year?

5.  The “owner” actually sent photos of the condo.  Have some common sense – does this really look like a $1,200/month condo?

The average price of a 600 square foot, 1-bedroom, 1-bathroom condo without parking in downtown Toronto is $1,400 per month.

This person on Craigslist was advertising a 1246 square foot, 2-bedroom, 2-bathroom condo with parking and fully furnished with luxury furniture and electronics for $200 LESS.

Does common sense not eventually prevail?

You might say, “Hold on a minute – what if her story really is true?  What if everybody assumed it was a scam and nobody investigated?  What if nobody reaped the rewards?”

Let me tell you a story my second-year accounting professor once told me…

There was an advertisement in the newspaper that read the following:
FOR SALE: FERRARI TESTAROSSA IN MINT CONDITION.  PRICE: $1.00.

The ad ran for two weeks straight since nobody thought the offer was genuine, until finally a lady called on the car.

“I saw the ad in the newspaper.  Are you really offering this car for one dollar?” asked the potential buyer.

“That’s right,” said the car owner.  “Bring me one dollar, and I’ll give you the keys.”

The buyer asked the obvious question, “Why the heck are you selling this car for a dollar, if you don’t mind my asking…”

The owner responded, “Well you see, a month ago, my husband ran off to Aruba with his secretary.  He had his lawyers come to my door with papers and he’s now suing me for divorce.  Then two weeks ago, he called me and said, ‘I need money.  Sell the car, and send me the proceeds.'”

It’s a nice story, but quite anecdotal, wouldn’t you say?

For those of you that believe this story could be true, I’ve got a beautiful 2-bedroom condo on Bay Street waiting for you at only $1,200 a month.  If you’re lucky, you might find a beautiful Nigerian model to be your roommate…