Sunday, June 7, 2015

Warning: Fraud on HomeAway Vacation Rentals Site!



Many people use HomeAway.com to search and book their vacation rentals.  They think that this is a reputable site and safe to use.   As my son and his friends recently discovered, there are scammers who use this site to defraud people, and HomeAway does not do enough to prevent fraudulent postings on their site.  They also refuse to reimburse the victims for the losses as per their guarantee promise.  Please read the short story below to avoid being scammed when you book your vacation rental.

My son and his friends were looking for a vacation rental for this summer’s senior week.  One of his friends, Brian, volunteered to make the arrangements.  Brian found several houses they liked on HomeAway and send inquiries.  He received various responses.  One response looked as it came from the HomeAway site stated that the apartment he inquired had a cancellation, and, if he moves fast, he could reserve it.  The property number was different than the one he inquired on (which he did not notice), but it represented a legitimate property on HomeAway.

The group made a  mistake paying this fraudster up front by making a money transfer.  After the money transfer was made, the “property owner” emailed Brian that there was a mistake in account number and the funds he wired were not received.  He provided another bank account and requested to make another wire transfer.  The group checked whether the money was transferred back to Brian’s account, and since they were not, they tried contacting the home owner and requested to check what happened.  The emailing back-and-forth went for a few days.  At this point they finally suspected that something was fishy and tried to reverse the wire transfer.  They were notified by the bank that it was not possible to reverse the transfer because the account the money was wired to was closed.

Before the payment was made, HomeAway identified the false listing and sent an email notifying Brian that they delisted this listing for suspected fraud.  However, since the listing of the property now Brian was dealing with was different, he figured this email was in reference to one of the other listings he inquired on and took no action. 

When I contacted HomeAway to see what could be done to recover the lost money and find out how do they let fraudulent listings on their site, their Trust and Security customer service person first implied that it was very likely that the group would be eligible for a $1,000 refund as part of the HomeAway guarantee.  He asked me to collect and submit all documentation including all communications, wire transfer records and signed contracts. 

After I submitted all documentation, HomeAway notified me that my son and his friends were not eligible to receive the $1,000 guarantee, because they made the payment after HomeAway sent the email notifying of suspicious listing.  My pleas and explanations that listing number was cleverly changed by the fraudster did not help.

I feel that although Brian and his friends made many mistakes in this process, HomeAway was partially responsible for the fraud by letting an illegitimate person to make a listing on their site – they obviously do not check good enough whether the listing is legitimate and do not authenticate the people who make the listings.  It is unfortunate that so far they have not been willing to take responsibility for this and honor their guarantee. 

Who knows what other fraud schemes are happening on HomeAway site.   I would not recommend using their service for your vacation rentals -- you are risking losing your money and spoiling your vacation plans.

6 comments:

  1. Hi Simon –

    I feel badly for the situation that happened with your son and his friends, but thought I’d take a second to fill you in on the other side of the coin. I am a vacation rental owner who represents our house on HomeAway/VRBO, and in February of this year was also the victim of fraudulent activity.

    We own a beautiful home in the Florida panhandle, between Destin and Panama City Beach. We bought the home for its fun style, location, and rent-ability. I spend hours each day managing our housekeepers, current renters, upcoming guests, and fielding inquiries. We care about our home, our guests’ experience, and how we are represented online. I want you to know that HomeAway/VRBO is FULL of owners like us – it is not a site that is full of fake ads, fake reviews, and fraudsters ready to grab your money and run. That said, as in all e-commerce, one has to be savvy.

    Last February I must have received a “phishing” email that was created to mimic one commonly sent to owners from HomeAway. I apparently clicked the hotlink in the email and went to a site that again, looked like the HomeAway owner page, and entered my email and password. I don’t remember doing any of this, but this is routinely how bad guys receive the information required to enter and hijack an owner’s site and data. Now that scammer can act as me and interact with incoming inquiries, and I was none the wiser. That is, until one of our potential guests had the presence of mind to call my phone number, listed on our VRBO ad, before completing her wire transfer of thousands of dollars to a foreign bank account! I was SO relieved that she called, and immediately set about working with HomeAway to once again lock down my account. Happily, that gal ended up booking her vacation at our home anyway – directly through me, as intended.

    So you see, our rental home is legitimate. I am legitimate. We care about our home and our guests’ vacation experience. There are legions of folks like us on HomeAway/VRBO. It is unfortunate that you have chosen to paint us all with a bad brush because of your son and his friends’ experience. And though I agree, given the information you presented, that HomeAway should have worked to refund your money lost, there are red flags that anyone doing business on the internet, and specifically when renting a vacation property should know:

    1. No owner in their right mind would knowingly rent to a high school senior and his buddies, without responsible parents also staying in the home. Most rental contracts stipulate that the minimum age for the responsible party is 25, and that person MUST stay with the group in the home for the duration of the stay.
    2. The vast majority of owners in the U.S. would never ask for a wire transfer of funds for payment. We prefer e-check or credit card payments made through the HomeAway or another secure site, which means that we never see our guest’s card numbers. Many owners prefer paper checks as well, which is generally safe and convenient.
    3. Scammers often offer deep discounts over the rates viewed on the property site. These discounts are suggested if you pay right away, pay via wire transfer, etc. Don’t fall for it!
    4. For peace of mind, CALL THE OWNER listed on the property before making any payment.

    Again, I am so sorry for your experience. Thank you for the opportunity to share the other side of the story!

    ReplyDelete
  2. Hi Simon –

    I feel badly for the situation that happened with your son and his friends, but thought I’d take a second to fill you in on the other side of the coin. I am a vacation rental owner who represents our house on HomeAway/VRBO, and in February of this year was also the victim of fraudulent activity.

    We own a beautiful home in the Florida panhandle, between Destin and Panama City Beach. We bought the home for its fun style, location, and rent-ability. I spend hours each day managing our housekeepers, current renters, upcoming guests, and fielding inquiries. We care about our home, our guests’ experience, and how we are represented online. I want you to know that HomeAway/VRBO is FULL of owners like us – it is not a site that is full of fake ads, fake reviews, and fraudsters ready to grab your money and run. That said, as in all e-commerce, one has to be savvy.

    Last February I must have received a “phishing” email that was created to mimic one commonly sent to owners from HomeAway. I apparently clicked the hotlink in the email and went to a site that again, looked like the HomeAway owner page, and entered my email and password. I don’t remember doing any of this, but this is routinely how bad guys receive the information required to enter and hijack an owner’s site and data. Now that scammer could act as me and interact with incoming inquiries, and I was none the wiser. That is, until one of our potential guests had the presence of mind to call my phone number, listed on our VRBO ad, before completing her wire transfer of thousands of dollars to a foreign bank account! I was SO relieved that she called, and immediately set about working with HomeAway to once again lock down my account. Happily, that gal ended up booking her vacation at our home anyway – directly through me, as intended.

    So you see, our rental home is legitimate. I am legitimate. We care about our home and our guests’ vacation experience. There are legions of folks like us on HomeAway/VRBO. It is unfortunate that you have chosen to paint us all with a bad brush because of your son and his friends’ experience. And though I agree, given the information you presented, that HomeAway should have worked to refund your money lost, there are red flags that anyone doing business on the internet, and specifically when renting a vacation property should know:

    1. No owner in their right mind would knowingly rent to a high school senior and his buddies, without responsible parents also staying in the home. Most rental contracts stipulate that the minimum age for the responsible party is 25, and that person MUST stay with the group in the home for the duration of the stay.
    2. The vast majority of owners in the U.S. would never ask for a wire transfer of funds for payment. We prefer e-check or credit card payments made through the HomeAway or another secure site, which means that we never see our guest’s card numbers. Many owners prefer paper checks as well, which is generally safe and convenient.
    3. Scammers often offer deep discounts over the rates viewed on the property site. These discounts are suggested if you pay right away, pay via wire transfer, etc. Don’t fall for it!
    4. For peace of mind, CALL THE OWNER listed on the property before making any payment.

    Again, I am so sorry for your experience. Thank you for the opportunity to share the other side of the story!

    - Katie

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