“Legal and title experts state that AI property fraud is on the rise. Advancements in AI have made some property fraud schemes more sophisticated and easier to execute. AI-generated documents have been used to forge property deeds and carry out fraudulent transactions. Common tactics include would-be scammers selling properties they don’t own, taking out fraudulent loans, renting out occupied properties, or refinancing mortgages using forged documentation. As Lauren Albrecht, President of Florida Title & Trust, notes, in most cases, the money is gone before anyone realizes it’s a scam.
Hallandale Beach, FL
AI-powered property fraud schemes are becoming increasingly sophisticated. Scammers often file forged deeds to gain ownership of properties they don’t own. They can then sell the property, take out loans, or rent it illegally. Albrecht said her company encountered a deep fake scam where a seller provided forged identification and appeared on a video call. But, upon closer inspection, it became evident that the movements were unnatural and repetitive. The video was revealed as a deep fake generated by AI using the likeness of someone else. A reverse image search confirmed the photo used was from a missing person’s flyer. Albrecht notes potential fraud indicators can include a fraudulent seller asking for a quick or an all-cash sale, and requesting only written communication.
Randolph, NJ
A real estate agent in Randolph was contacted by a property owner wanting to sell and take advantage of soaring prices. He provided a property deed, claiming to have acquired the property through a complex transaction 25 years earlier, even though he had never visited NJ. A sale took place and half of the $140,000 selling price was sent to the seller. However, identification documents provided by the seller were subsequently revealed to be fake but were indeed the names and addresses of the real property owners. The seller, however, was not the owner of the property but he was connected to a crime web with international connections in Vietnam and Canada. The FBI got involved and stopped the remaining payment from occurring, but the fraudulent seller is now listed as the owner of the property, not the original and rightful owners.
Memphis, TN
If it can happen to Elvis, it can happen to you. After the passing of Elvis Presley and subsequently his daughter Lisa Marie, their beloved Graceland mansion in Memphis was almost lost due to real estate fraud, specifically home title theft. It was alleged that Lisa Marie had used Graceland as collateral on a loan which defaulted after death forcing the property into foreclosure. It was set to be auctioned off by a private lending company, however, lawyers for granddaughter Riley Keough proved that Lisa Marie’s signature was forged and therefore the pending foreclosure and sale were invalid. The scammer? A 53-year-old woman from Kimberling City, MO.
Los Angeles, CA
Remember TV producer Aaron Spelling? Spelling once owned a mansion in Los Angeles that was up for sale. According to the Wall Street Journal, a dispute resulted between the couple that purchased the property from a British billionaire and another couple that claims the property is legally theirs because of a confusing saga that includes misappropriated funds, a federal government settlement, and Thomas Girardi, former husband of Erika Girardi of Real Housewives of Beverly Hills television fame. You can’t make these things up.
New York City, NY
The New York City Department of Finance identifies that while any property owner could be the victim of property fraud, immigrants, seniors, and people of color are most often targeted. Scammers most often go after vacant land or properties rather than occupied homes. If a fraudulent deed is filed, the rightful owner must prove ownership in court, which can be costly and time-consuming. If an owner is unaware that a fraudulent deed has been filed, it’s possible that the home could be unlawfully sold and the legal process to recover it could be even more extensive. The New York City Department of Finance suggests a trio of ways to protect yourself from property fraud, including buying title insurance, clearly identifying who will inherit your property upon your passing, and not leaving properties unattended for extended periods.
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Author – Connie Motz
