1 in 3 Renters Hit by Fake Listings as Rental Scams Decrease in Frequency but Increase in Financial Severity

Reported scams fell in 2025, but a troubling trend is emerging: rental scams are growing increasingly sophisticated, and 43% of victims never recover their lost deposits or fees

VANCOUVER, British Columbia, Oct. 31, 2025 (GLOBE NEWSWIRE) -- Despite fewer reported cases, rental scams continue to evolve — fueled by advanced tactics, convincing fake listings, and the growing use of Artificial Intelligence (AI) in the rental market. Renters now face a digital landscape that demands greater awareness and caution.

The cost of convincing scams

While rental scams were reported less often in 2025, the average financial loss per case increased as scammers used more sophisticated tools and methods. In fact, the average dollar loss per victim has climbed steadily over the past three years, rising 21% from $1,706.82 in 2023 to $2,071.60 in 2025 (CAFC, 2025). Nowadays, scammers are investing more effort into hyper realistic listings, using real addresses, professional or doctored photos, and fake but convincing documentation. Scams can also be multi-step and high value, involving costly falsified lease agreements and even identity theft that cause major personal disruptions. Due to these embarrassing, time-consuming and exploitative operations, many victims don’t report cases or recover funds. In 2025 alone, 43% of rental scam victims never recovered their lost deposits or fees (BBB, 2025).

“Recent trends show that scammers are prioritizing quality over quantity—targeting fewer people with more convincing schemes that result in higher financial losses,” says Matisse Yu, Head of Marketing at liv.rent. “Constant vigilance is required in the already exhaustive process to find a place to live.”

The rise of AI-powered rental scams

Artificial intelligence (AI) is undoubtedly one of the most transformative technologies of our time. As it becomes more deeply integrated into everyday industries, it has also opened new doors for misuse. Unfortunately, bad actors are quick to exploit these advancements for fraudulent purposes. In the rental market, scammers are now using generative AI tools to produce fake listings that look strikingly real (CityNews), and 1-in-3 renters reported encountering a fraudulent listing during their housing search in 2025 (National Multifamily Housing Council, 2025). Scammers can quickly duplicate legitimate postings, craft authentic-sounding responses that mimic real landlords, and even generate realistic fake IDs. This makes it increasingly difficult for renters to distinguish between genuine and fraudulent listings, leaving many vulnerable to financial loss and emotional distress. Rental scams ranked #5 in the BBB's 'Top 10 Most Reported Scams' for Q1 2025, with a 20% increase from 2024 (BBB Annual Risk Report, 2025), which is why liv.rent takes steps to actively educate renters about threats and offer advice based on firsthand experience.

Verification remains renters’ best defense

In light of these evolving threats, the most effective way for renters to protect themselves is by using trusted platforms that prioritize safety and verification. Choosing a platform with multiple layers of identity and listing authentication can make all the difference. For example, the liv.rent platform takes a verification-first approach, ensuring that users go through a comprehensive authentication process. By verifying IDs, reviewing documentation, and cross-checking information, liv.rent minimizes the risk of scams before they even reach users. Moreover, as deceptive practices continue to pose challenges for renters, liv.rent consistently enhances its verification system, adding new layers of protection to safeguard users against emerging threats. This commitment to security has made liv.rent one of Canada’s safest and most reliable rental platforms, giving renters peace of mind as they search for their next home.

About liv.rent 

Based in Vancouver, liv.rent is an all-in-one rental platform that goes beyond listings, helping Canadian renters and landlords discover an easier, safer way to rent. Since launching in 2018, liv.rent has been a leader in the rental industry, transforming the way Canadians rent with the integration of technology and innovative safety measures. By automating every step of the rental process from searching for and creating listings to signing digital contracts, this platform has grown to create a safe and trusted community of landlords and renters.

From liv.rent’s inception, strict verification processes for both landlords and listings have been a core part of the platform. The rental platform has put together a dedicated Rental Scams Resource Hub as well, designed to educate renters about the danger of scams through first-hand reports, details on common types of scams, and tips for staying safe while renting.

Matisse Yiu 
Head of Marketing
liv.rent 
media@liv.rent

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