Fraudsters using stolen credit card details
A chargeback is when a person disputes a charge on their credit card and the issuing bank removes it automatically. In the rental industry world, it is when a guest books a stay at the property, checks out, calls their credit card company and claims they have never stayed there.
Essentially, they get to stay for free, leaving owners to deal with the losses.
There are only limited counter-measures booking platforms use to detect unsolicited credit card payments. That said, it is relatively easy for a fraudster to make a booking under a fake name and a credit card. In a lot of reported cases, properties with self-access entries such as smart locks with no face-to-face verification lets fraudsters get away scot-free.
Unlawful activities and unaccountable damages
If a booking was made under the guise of someone else, chances are that the fraudsters are hoping to get away with unlawful activities and whatever damages that may be incurred during the stay. A missing TV or a broken shower door cannot be held accountable to a guest that “never stayed” at your property.
Public safety and property
Keep in mind that damage can also be done on surrounding premises, common areas and assets. There are serious muddy waters around rental property laws when it comes to public property and safety of the residents.
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