Airbnb Donors Getting Duped
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March 5, 2022
During times of crisis, human kindness compels us to search for ways to comfort those in pain. As I watch the devastation in Ukraine from half a world away, it’s not so easy to take direct action. Like most people, I want to find someone I can help. Having that personal connection is so important. It’s what makes us feel as if what we are doing matters.
Perhaps that’s the motivating factor in the popular meme going around suggesting people book listings on Airbnb in order to help Ukrainians. Media outlets from Bloomberg, to CNN, and users from Utah to Australia have jumped on this bandwagon, lured by the promise of a personal connection to someone in need. Looking for some way they can make a difference.
Having some expertise on how Airbnb operates, I can tell you, donating through Airbnb is a terrible idea. If good-hearted people want to send money, there are many other worthy organizations, such as Doctors Without Borders and Amnesty International who have a proven track record of providing aid in war-torn areas. You might not get the feel-good rush from thinking you’ve connected with someone in Ukraine, but at least you’ll know you’re not being scammed.
The whole movement seems to have started on social media, and is attributed to a user named Quentin Quarantino, whose Instagram page boasts of raising $9.4M in 2021. Quarantino is the alter ego of Tommy Marcus who acquired thousands of followers after claiming to have rescued dozens of refugees in Afghanistan through a GoFundMe campaign.
But, instead of creating a similar campaign for the war in Ukraine, he appears to have simply pulled the Airbnb idea out of his ass.
Long before the first wave of Russian tanks rolled into Ukraine, Airbnb had a history of illegal listings which are not legitimate. They also earned a dubious reputation for engaging in practices which have harmed communities and damaged local housing markets. In fact, many see Airbnb’s offer to help refugees as nothing more than a way to repair its tarnished image by racking up millions in free publicity. All the attention certainly benefits a company that is forced to spend millions in “black box” operations to cover up the ills it perpetrates on society.
Due to the anonymity with which Airbnb operates, there is no guarantee the money spent on a listing actually reaches a real person in need. Hosts are able to list multiple properties and often these listings benefit a corporation, not an individual.
There is also no requirement the host actually lives in Ukraine. Many foreign owners have properties listed on Airbnb and you could be giving your money to a wealthy landlord who’s sitting safe and warm in another country.
With many people fleeing the city, refugees may not have access to computers or online accounts to access the money. Plus, Airbnb only pays after the first date of check-in, so if this date is not relatively soon, or is for a substantial stay, it could be months before a host gets the money.
In most cases, hosts are required to pay income and local taxes on money earned through Airbnb, charges which Airbnb does not have the authority to waive. And, any money sent through Airbnb is not tax deductible because Airbnb is not a legitimate charity. (Note: Airbnb customers are making ghost reservations through Airbnb, Inc., the main Airbnb platform, which is a for-profit organization not established as charity.)
It would be quicker and more cost-effective to Venmo money to Ukrainians.
Now, with the prospect of money pouring in, there is nothing to stop nefarious players from taking advantage of people’s generosity and there are early reports donors are getting duped.
For example, I set up an Airbnb listing within five minutes using the address of a McDonalds in Kyiv (see Kyiv Condo photo above). Needless to say, there were no verifications done to ensure the listing is real before it went live. (I removed the listing immediately after taking the screenshot so that no one would try to book a reservation.)
There is literally nothing stopping anyone from setting up dozens of listings throughout the country in order to scam people. For all you know, your money may end up in the pockets of a Russian hacker.
Airbnb fraud is so rampant where I live in Los Angeles, there are thousands of listings that violate the law. L.A. City Planning has acknowledged there is little they can do to stop it even after spending in excess of $1.4M per year to license an enforcement platform. Likewise, Airbnb has done nothing to curtail the problem on its own. You have to wonder, if Airbnb fraud is this bad in a major city like Los Angeles, what’s to be expected in the carnage and chaos of Ukraine?
Instead of supporting a multi-billion dollar company in its efforts to gain free publicity, consider working with local groups such as NovaUkraine, which has a long-time presence in Ukraine and a track record of helping real people.
Host4Ukraine is providing free housing for refugees on a larger scale than Airbnb and without the corporate angle. These are volunteers doing the hard work, so why not shine a light on them?
Or, how about the amazing humanitarian work of Chef José Andrés whose World Central Kitchen is already on the front lines feeding refugees? What could be more personal than putting food in a hungry child’s stomach?
Unfortunately, people just don’t want to listen to good advice because they’re convinced by the voices on the other end of the conversation, even when there are all kinds of red flags going up (rental management company, setting up a rental listing for a solider, creating duplicate listings, Airbnb waiving taxes). Con artists understand these human frailties all too well, which is why they are particularly adept at taking advantage of people in times of crisis.
So, please don’t give your money to Airbnb. If you still haven’t decided on a charity, consider these suggestions promoted by the Ukrainian Culture Center of Los Angeles.
You can make a difference through legitimate charities. And chances are much better that you won’t get scammed.
