AI Scammers Target Real Estate Deals

Buying a new house is stressful enough. But scammers have found a way to heighten the angst by posing as participants in real estate deals. The Washington Post reported in December that a Virginia woman was conned into wiring a $255,000 down payment to a scammer after receiving what she thought was a legitimate email with wiring instructions from the title company.

The email did not have the tell-tale signs of fraud: no typos, grammatical errors or other red flags. That’s because it was likely written with the help of Artificial Intelligence (AI), which can create conversational language that sounds just like real life.

Raegan Bartlo eventually got half of her money back, but she was still out more than $100,000. “It was terrifying. You feel violated. I thought we lost everything,” she told the Washington Post.

Experts say that criminals are increasingly using AI to pose as trusted professionals in real estate deals – whether it’s the title company, real estate agency, or bank.

Fraudsters unearth personal information about the deals in public records, and then use AI-created videos, emails, and audiotapes to interact with unsuspecting participants.

As an increasing number of real estate deals are conducted virtually, participants should be aware of the risks.

The FBI warned in December that criminals were using AI tools in all sorts of financial scams. Realtor Magazine reported last year that “sophisticated scammers can hijack real estate transactions using deepfake audio and video to impersonate agents and other parties involved in a home purchase.”

The magazine cited the case of a Hong Kong investor who lost $25 million in a real estate scam in which the scammer participated in a live video call and described AI tools as “the next frontier in real estate scams.” The report emphasized that consumers need to be warned to be on the lookout for fraud.

To protect against AI fraud in real estate transactions, experts suggest that consumers independently verify the wiring instructions for down payments and other transactions through a separate phone call − before sending any money.

Social Security Tries to Limit Scams in 2025

In a recent letter to millions of beneficiaries, the Social Security Administration (SSA) warned about scammers who are masquerading as government employees in a bid to steal people’s Social Security numbers.

The letter, which announced a 2.5% inflation hike for 2025, noted that fraudsters use various tactics to capture people’s Social Security numbers. Scammers “may threaten you and may demand immediate payment to avoid arrest or other legal action,” the letter warned. “Do not be fooled!” The official notice came inside an envelope that referenced SCAM ALERT in large letters.

“Anyone who receives a suspicious phone call should hang up,” the letter said. It added: “Do not give them money or personal information.” Individuals who receive such overtures are advised to file a report with the Social Security’s Office of Inspector General at OIG.SSA.GOV.

In a separate report, Social Security officials explain that scammers use Social Security numbers to apply for credit in the name of their victims, and then make purchases they do not pay for.

Fraudsters may capture an individual’s Social Security number through the theft of wallets, purses, checks, and mail, including correspondence with their accountant. They also may search through trash or purchase the info from unscrupulous vendors, including on the Dark Web.

In a recent web posting, the SSA’s William Bardin, an acting associate commissioner, urged that people take steps to protect themselves from Social Security scams in the new year, and offered the following recommendations:

• Safeguard your social media profiles. Review your privacy settings and use judgment to limit personal information you put online.
• Be careful with QR codes. Scammers are tampering with QR [Quick Response] codes to steal personal data. The SSA cautions the public to avoid scanning a QR code if looks odd or altered in any way.
• Use strong passwords and passkeys. This can be achieved with the help of a password manager, an app that generates strong passwords for you and keeps them secure.
• Think before sharing personal information. Scammers may pretend to represent the Social Security Administration or other government agencies to get you to provide personal details, including your Social Security number or other data that can be exploited in identity theft.
• Stay informed of the latest scam trends. Fraudsters often modify their tactics to take advantage of new technologies including artificial intelligence that may copy people’s voices.

CONSUMER TIP : Protection You Do Not Need

We should all be on the lookout for scams and fraud. But we don’t need to waste time and money worrying about threats that may not exist. Take the case of RFID, Radio Frequency Identification, a technology that enables consumers to make payments by tapping or hovering credit cards over a payment device. Apple and Google also use RFID in their digital wallets.

According to AARP, a batch of new products are hitting the marketplace that claim to protect consumers from scams that steal data from credit cards that use the technology, which relies on tiny chips. The potentially expensive products include wallets, purses, and fanny packs that claim to offer protective features.

But is this a real threat? Experts interviewed by AARP suggest that the answer is no. For now, at least, there is little evidence that criminals are scanning credit cards to steal data remotely – and doing so would be difficult. “It’s just very theoretical fraud,” says Frank McKenna, chief strategist for Point Predictive, a San Diego-based fraud detection company.

Don’t Pay for Free Government Services

It shouldn’t cost you money to do business with the federal government. But scammers exploit the fact that most people don’t know that. The Better Business Bureau is warning that fraudsters are trying to trick consumers and businesses into paying for help with registrations on a free government vendor website, known as the US System for Award Management (SAM.gov).

The fraudsters send an email that claims it is from a SAM.gov representative, alleging that the user’s account is about to expire. The email asks for updated information and then steers the user to another website that asks for money to renew the account.

The fraudster sends an email that appears to be from a SAM.gov representative, alleging that the user’s account is about to expire. The email asks for updated information and then steers the user to another website that requests funds to renew the account.

The BBB says that you should never pay for SAM.gov registration. If you receive an email that appears to be from a government agency, contact them via the information provided in its official website.