Question about displaced family placement companies

[Nate Pucel]

I own a furnished home that I list on furnished finder. Multiple times now I've had people reach out in an effort to place a displaced family in my area, however the people who reach out are always from another state, and they don't work for the displaced family's insurance company.

It's a weird business model where they technically are the entity leasing the house. They tack on a couple thousand to the rent, collect the monthly rent check from insurance, pocket the upcharge and disperse the rest to me, or whoever is landlord.

Aside from this being insane, and probably shouldn't be legal, how are these people finding out about these displaced families if they don't work for the insurance company or live in the area? It just seems super shady, in many different ways.