Tourists lose tens of thousands in vacation scam rattling California’s billionaire playground

Vacation home renters in South Lake Tahoe are being targeted via scams on Craigslist involving listings that include pictures and lengthy descriptions of real houses with advance payment requirements, usually by check or Western Union wire.

When victims arrive at the advertised vacation home rental, they typically find it is either a full-time residence or already occupied by other renters.

The scam targets tourists looking for deals.

South Lake Tahoe vacation rental properties in the Sierra Nevada region
South Lake Tahoe vacation rental properties in the Sierra Nevada region via Tahoedailytribune
Tourists arriving at addresses for vacation homes they thought they had booked
Tourists arriving at addresses for vacation homes they thought they had booked via Ca Kayak

In some cases, the fraudulent Craigslist listings include pictures and lengthy descriptions of real homes, with vacationers paying in advance, typically by check or Western Union wire.

Once the “landlord” receives money, the scheme is complete.

When the victim arrives at the vacation rental, they learn the home is occupied by permanent residents or already rented.

Victims are left out their initial payments, sometimes $800 or more, sent through money orders to scammers.

Police say the problem is relentless.

It is nearly impossible to stop the scammers as they are relentless in posting fake listings on craigslist.

Summer 2025 saw massive vacation fraud totals.

Police warning signs about Craigslist vacation rental scams in South Lake Tahoe
Police warning signs about Craigslist vacation rental scams in South Lake Tahoe via Airbnb
Scammers using fake bank account and wire transfer methods to steal vacation money
Scammers using fake bank account and wire transfer methods to steal vacation money via Yahoo

Data from the Federal Trade Commission shows that there were 14,263 vacation and travel fraud reports filed between July and September of 2025, with losses peaking at an estimated $40 million.

California’s estimated total loss in the third quarter of 2025 was about $6.3 million, the greatest of any state.

The area known for billionaire estates faces a tourist crisis.

Lake Tahoe is home to billionaires including Mark Zuckerberg, Google co-founder Sergey Brin and Oracle co-founder Larry Ellison.

But many ordinary tourists now arrive to find nothing but disappointment.

California’s billionaire playground on edge as new vacation scam steals tens of thousands from tourists
via Yahoo

In some cases, scammers are asking potential renters to deposit money into a bank account or to buy gift cards and provide the numbers on the card.

Real estate fraud experts warn the scams are an epidemic.

“This is an epidemic,” said Robert Leach, the real estate fraud criminal investigator for the El Dorado County District Attorney’s Office.

“The best way to stop the fraud is not to rent a home on craigslist. Don’t send money to people you don’t know. Mail payment only to a company with a physical address.” According to Leach, homes being rented fraudulently are usually actual vacation rentals at the lake, but the scammers taking money don’t have anything to do with legitimate renting of the homes.

Holiday weeks see the worst activity.

During Christmas and New Year’s holiday week in 2015 there were 30 reported cases of vacation rental fraud in South Lake Tahoe, up from five cases in 2014.

Legitimate rental company owner Kathy Liebhardt discovered that teachers who had shown up to use a house she owned had been scammed and showed up with no place to stay.

Liebhardt quickly found the teachers alternative housing for the weekend, but they were out their initial $800 paid through money orders to the scammer.

Police urge caution when searching online for homes.

Credit card companies have already performed basic background checks on companies charging your card, unlike bank wires, certified checks, Western Union or other services where money is gone forever immediately after sending.

South Lake Tahoe Police Department warning about rental scams
South Lake Tahoe Police Department warning about rental scams via Yahoo
Legitimate vacation rental management companies that tourists should use instead
Legitimate vacation rental management companies that tourists should use instead via Yahoo

A typical scam begins with a criminal posting information about a real vacation home, complete with photos and information taken off real websites with valid listings, posting this on Craigslist in cities across the state and sometimes the country, waiting for people to book what they think is a great vacation in South Lake Tahoe.

Once the victim arrives in South Lake Tahoe they learn the address given is fake, it is a home already occupied or nobody will be there to greet them as arranged and never will be.

The warning came through official police statements and alerts.

The South Lake Tahoe Police Department continues warning potential vacation home renters that scams continue on Craigslist.

Victims of a vacation rental scam should contact the South Lake Tahoe Police Department at 530-542-6100.