AI Technology Sparks New Wave of Real Estate Scams Targeting Homeowners

With rapid advancements in AI technology, scammers have gained new ways to exploit real estate systems, focusing on title theft or deed fraud. This trend affects a wide range of homeowners—from those in upscale properties to owners of smaller residences and land plots—according to experts on real estate fraud.

Research from the American Land Title Association and NDP Analytics highlights the scope of seller impersonation fraud: of the 783 title insurance companies surveyed, 28% reported facing impersonation attempts in 2023, with 19% of companies encountering cases by April 2024.

The FBI’s Internet Crime Complaint Center reported 9,521 real estate fraud complaints in 2023, amounting to over $145 million in losses. The availability of public property data, including transaction records and property details, makes it easier for scammers to target specific homes.

Using AI, scammers can craft convincing fraudulent documents with speed and accuracy. These tools also help identify vacant homes and unmortgaged properties—preferred targets for scams like unauthorized refinancing. The ease of access to personal information online has simplified the process of impersonating property owners.

Stay Vigilant: Always confirm the identity of anyone involved in property transactions. If something feels amiss, consulting a real estate professional can offer the expertise needed to safeguard your interests.