Using AI to steal your homes from under your nose

The rise of artificial intelligence (AI) is changing the game for real estate scams, making it easier for criminals to pull off tricky schemes like deed theft. A high-profile case involves Spelling Manor, a luxurious $137.5 million mansion in Los Angeles. The owner claims to be a victim of deed fraud, as scammers filed fake documents that block the owner from selling the house to potential buyers, including former Google CEO Eric Schmidt.

As AI tools become more common, they help scammers create fake ownership documents faster and more convincingly than ever before. This has encouraged more people to attempt fraud, with many impersonating real property owners. A recent report found that 28% of title insurance companies faced attempts at seller impersonation fraud in 2023.

While the FBI handles thousands of real estate fraud complaints, they don’t track deed fraud specifically. However, the impact can be serious. In many cases, homeowners have discovered their properties sold without their knowledge, often using forged paperwork.

Experts say that as scammers get smarter, it’s crucial for offices that record property deeds to improve their identity checks. Many smaller transactions lack the careful oversight that can catch these scams, making them easier targets.

The influence of AI is significant; some scammers are using deepfake technology to create realistic video impersonations, which adds to their credibility in tricking people. With easy access to a wealth of public property data, these criminals can generate believable fake documents quickly. Experts warn that as technology advances, fraud methods will likely become even more clever, posing a growing threat to property owners.

In summary, the combination of AI and traditional fraud tactics is a rising concern for homeowners and the real estate industry. There’s an urgent need for better security measures and increased awareness to combat this emerging problem.

[Source: Business Insider]