Criminals are now using AI for property-related scams
AI-powered property scams are becoming increasingly convincing. Here are some tips on how to spot the signs of a scam.
Criminals are increasingly using Artificial Intelligence (AI) to orchestrate complex property scams targeting buyers, sellers and tenants, particularly in sectional title schemes.
Pearl Scheltema, CEO of Fitzanne Estates, warns that these AI-driven scams are becoming more convincing and targeted, posing a significant threat to the property market.
According to BusinessTech, scammers are leveraging AI to generate fake property listings, forge official documents and produce deepfake videos of supposed owners or agents. In South Africa, AI-assisted rental scams have gained traction, with fraudsters creating realistic online listings using AI-enhanced photographs.
These listings often feature appealing properties that do not exist and unsuspecting tenants are pressured into paying deposits or levies upfront.
Scammers intercept levy statements and alter them to reroute payments into criminal accounts. They also use AI-forged letterheads and signatures to create convincing emails that appear to be from managing agents. This can result in financial loss, disputes with schemes and disruption to community trust.
Below are some of the scams that have come about:
Rental Scams: Scammers create fake rental listings with AI-enhanced photographs, pressuring tenants to pay deposits or levies upfront.
Sectional Title Scheme Scams: Scammers target multiple owners, trustees and service providers, intercepting levy statements and altering payments.
Voice Cloning Scams: Scammers use voice-cloning software to impersonate estate agents or attorneys over the phone, tricking clients into transferring large sums of money.
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To avoid falling victim to these scams, it's essential to be vigilant and take steps to protect yourself. This includes:
Verifying the authenticity of property listings and agents.
Being cautious of emails or messages with AI-forged letterheads and signatures.
Never pay deposits or levies without viewing the property.
Reporting suspicious activity to the relevant authorities.
As AI technology continues to evolve, it's likely that scammers will become even more sophisticated in their tactics. According to Guardio's research team, AI-driven scams will reach new heights in 2025, with hyper-personalised phishing attacks, deepfake-powered tech support scams and fake generative AI sites mimicking legitimate tools.
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