AI-powered scams increase real estate fraud risks

Artificial intelligence is driving a rise in sophisticated real estate scams, specifically targeting closing funds through digital mimicry. Fraudsters are utilizing deepfake audio and AI-generated documents to impersonate legitimate property owners and professionals, making these schemes increasingly difficult to detect.

According to the FBI’s 2025 Internet Crime Report, real estate fraud losses surpassed $275 million, an increase from approximately $173 million in 2024. The agency also reported over 22,000 AI-related fraud complaints, with associated losses exceeding $893 million.

Industry professionals note that these scams are no longer limited to simple wire fraud but are becoming embedded within legitimate transactions. Real estate brokers have reported instances where AI-generated identification and legal documents appeared credible until inconsistencies were identified during high-level verification processes.