Rental scams are on the rise with 42 victims in Rhode Island losing $1,414,709 last year, according to the FBI's Boston division.

Nationwide,11,578 people reported losing $350,328,166 through such scams, a 64% increase from the previous year, the FBI says. The actual number is probably even higher because victims often hesitate to report scams, the FBI says.

The increase in scams has coincided with the surge in real estate prices, according to the FBI.

“We have seen a significant increase in the amount of money being lost by people who are desperate for a good deal. Scammers are cashing in on renters who need to act quickly for fear of missing out, and it’s costing consumers thousands of dollars, and in some cases, leaving them stranded,” Joseph R. Bonavolonta, special agent in charge of the FBI Boston Division, said in a news release. “We are asking everyone to exercise caution, especially over the next few months, as folks look to book last-minute summer getaways.”

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The FBI says these are examples of real estate scams in Rhode Island

An Idaho man was moving to Rhode Island and responded to a Craigslist ad for a year-long rental in Narragansett. After getting a $21,756 advance from his employer, he wired the money to the “owner” and set up a time to get into the residence. Before they were supposed to meet, the Idaho man received a text canceling the meeting because the “owner” was in Chicago with his sick son. The victim went to the residence, where he met the actual property owner, who told him it was not a rental property and he had not posted an online ad.

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An East Providence man responded to an online ad for an apartment in Cambridge, Massachusetts, requiring the first and last month’s rent and a security deposit. He was told he wouldn't be given the keys and access the apartment until the $6,000 check cleared. When that happened, the East Providence man made an appointment to get the keys for the apartment, but no one answered the door. After calling and texting the purported owner, the victim received a test saying, “You got scammed, do not text this phone anymore.”

A University of Rhode Island student responded to an online ad on Facebook Marketplace for an apartment in Wakefield. The student wired $1,800 after he was told he wouldn’t be allowed to see the apartment before moving in because the landlord is "always traveling". When he showed up to move in, he discovered that the address he was given was for the leasing office, and he was told there were no units available.

Reacting to the FBI's report, South Kingstown Police Chief Matthew C. Moynihan urged "both renters and property owners" to be vigilant.

“South Kingstown is a great place to live and visit and our rental properties are in high demand,” Moynihan said in a news release. “If you are renting a property here or own a rental property, remember to be cautious, do your research, and handle your financial transactions carefully. If something seems too good to be true, it probably is.”

The FBI provided the following tips to avoid being scammed:

• Do not wire funds to people you do not know.

• Do not put money towards a house or apartment you have not seen.

• Confirm the identity of the landlord by researching public records to find out who owns the property you are seeking to rent or purchase.

• Do not fill out applications online until you have met directly with the property manager.

• Know local rental rates.

• Look for online reviews, references, and testimonials from past inhabitants.

• Be wary if a potential tenant wants to rent property sight unseen.

• Be wary if a potential tenant says they are out of town and will send you a cashiers’ check.

• Be wary if a potential landlord says he is out of the country and wants the rent sent to a foreign account.

• Do not accept overpayment for properties. If you receive a check for more than the specified amount, return it. Do not deposit it.

• If you find yourself the target or victim of a rental scam, stop all contact immediately, and if you have already sent money, it is extremely important to report any transfer of funds to your financial institution and file a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov.

jperry@providencejournal.com

(401) 277-7614

On Twitter: @jgregoryperry

This article originally appeared on The Providence Journal: RI rental scams cost victims more than $1.4 million says FBI