AI is making real estate fraud faster, more targeted and harder to recognize.
A familiar email address used to feel reassuring.
A recognizable voice on the phone felt like confirmation.
A photograph, employee badge or other credential could provide another layer of confidence.
Today, none of those things should automatically be treated as proof of identity.
Artificial intelligence is giving scammers new ways to impersonate clients, agents and other parties involved in a real estate transaction. It can help create convincing messages, imitate voices, generate images and gather publicly available information about a transaction.
That creates a new challenge for everyone involved in real estate.
The question is no longer simply, “Does this look real?”
It’s:
“How can I independently verify that it is real?”
That distinction could be especially important when a transaction involves sensitive personal information or the transfer of large amounts of money.
How Is AI Changing Real Estate Fraud?
AI isn’t creating entirely new categories of fraud, but it is making existing scams easier to personalize, reproduce and make more convincing.
Cybersecurity experts discussed this changing threat during the National Association of REALTORS® Tech & Innovation team’s webinar, “Cybersecurity in the Age of AI.”
Joshua Sklüt, CEO of SKLÜT, described the central challenge simply: proof matters more when appearances can be manipulated.
Sebastian Drywa, NAR’s director of cybersecurity, similarly warned that a person’s voice alone should no longer be considered reliable proof of identity.
That matters in real estate because transactions involve many opportunities for impersonation.
A scammer may research a property, identify the people involved, follow an email conversation and then attempt to insert fraudulent instructions at exactly the right moment.
The more information an attacker can gather, the more believable the deception can become.
Why Isn’t a Familiar Voice Enough Anymore?
Because AI can be used to create convincing synthetic or cloned voices from surprisingly small amounts of publicly available audio.
Mike Woodward, NAR’s director of data science, warned during the webinar that even a small amount of publicly available audio or imagery can potentially be used to create convincing synthetic media.
That changes an assumption many people naturally make:
“I know that person’s voice, so I know it’s them.”
But a voice can be copied.
A photograph can be manipulated.
A video can be altered.
An email account can be compromised.
And a scammer can combine several of these techniques to make a fraudulent request appear legitimate.
The lesson isn’t to distrust every phone call or email. It’s to stop relying on one signal as proof of identity.
What Are the Biggest Red Flags in an AI-Enabled Real Estate Scam?
The biggest warning signs include unexpected changes to payment information, unusual requests, sudden urgency and communication that seems convincing but cannot be independently verified.
Here are four red flags worth remembering.
1. A sudden change to wire instructions
Treat any new or modified payment instructions as a reason to stop and verify.
Wire fraud can be devastating because money can move quickly and recovery may be difficult.
Never assume that a new set of instructions is legitimate simply because it arrives from an account or contact you’ve communicated with before.
2. A request that doesn’t fit the normal transaction
An unusual request should trigger additional verification, even when it appears to come from someone familiar.
Ask yourself:
Does this make sense?
Is this how this transaction has been handled previously?
Why is this person asking for this information now?
3. Unexpected urgency
Urgency involving money or sensitive information should make you slow down, not speed up.
Scammers often benefit when people feel they have to act immediately.
A message saying that funds must be transferred “right now” should be treated as a reason to independently verify the request.
4. Communication that seems unusually convincing
A convincing email, voice or message is not the same thing as verified identity.
That’s perhaps the biggest change AI introduces.
The better the impersonation becomes, the less useful appearance alone becomes as a security measure.
How Can Buyers and Sellers Protect a Real Estate Transaction?
The strongest defense is to build independent verification into the transaction before something goes wrong.
That means establishing procedures in advance rather than trying to decide what to do while you’re under pressure.
One recommendation discussed by NAR’s cybersecurity experts is to establish a code word early in the transaction.
For example, the parties could agree on a word or phrase that can be used to help verify identity when communicating about sensitive matters.
The important principle is that the verification method should be established before there is a suspicious request.
Other practical steps include:
- Verify wire instructions independently.
- Use a phone number you already have on file.
- Confirm important financial changes through a known channel.
- Don’t rely solely on the contact information contained in a new message.
- Slow down when someone creates unusual urgency.
- Ask the title or closing company to confirm payment instructions through an established procedure.
The goal is simple: create a second path for verification that a scammer cannot easily control.
Why Should You Never Trust New Wire Instructions by Email Alone?
Because a compromised or spoofed communication channel can make fraudulent instructions appear legitimate.
Imagine receiving an email that appears to come from a title company shortly before closing.
The logo looks right.
The signature looks right.
The writing style looks familiar.
The instructions appear professional.
And the message tells you that the wire information has changed.
That is precisely when you should stop.
Do not call the number in the new email and assume you’ve verified the request.
Instead, use a phone number you already know to be legitimate and independently confirm the instructions.
A few extra minutes of verification can be far less costly than sending funds to the wrong account.
What If Someone Calls and Sounds Exactly Like the Person You Know?
Verify through another trusted channel before acting on any unusual request.
A familiar voice can create a powerful sense of confidence.
But cybersecurity experts increasingly warn that voice alone isn’t sufficient proof of identity.
If someone calls and asks you to:
- Change payment instructions
- Send sensitive information
- Reveal account information
- Bypass an established process
- Take an unusual action
Stop and verify.
Call the person back using a trusted number you already have.
Or contact another known party involved in the transaction.
The important thing is to create distance between the suspicious request and your verification method.
Don’t let the person making the request also control the way you verify the request.
How Can Real Estate Professionals Build Verification Into Transactions?
Real estate professionals should make verification a normal part of the transaction rather than an emergency response.
That can include establishing clear procedures with clients, title companies, lenders, and other transaction participants.
For example:
At the beginning: Establish how sensitive information and payment instructions will be communicated.
During the transaction: Remind clients that payment instructions should never be changed based solely on an email.
Before closing: Independently confirm important financial information.
When something changes: Pause the transaction and verify through a known channel.
This approach is important because scams can exploit moments when everyone is busy.
Closing is approaching.
A document needs to be signed.
A wire needs to go out.
Someone says there’s a deadline.
Those are precisely the moments when a well-established verification process can protect everyone.
Can AI Tools Create Security Risks for Real Estate Professionals?
Yes, AI tools can introduce data-leakage risks when sensitive information is entered into them without appropriate safeguards.
NAR’s Mike Woodward specifically warned about the risk of employees entering sensitive information into large language models and other AI tools.
That means brokerages and real estate professionals should establish clear policies regarding what information can and cannot be entered into AI systems.
Before putting information into an AI tool, consider whether it contains:
- Social Security numbers
- Bank account information
- Passwords
- Financial account details
- Private client information
- Confidential transaction documents
- Nonpublic personal information
Convenience should never override data security.
AI can be extremely useful, but professionals need to understand what information they are putting into the tools they use and what their organization’s policies require.
What About Physical Security in Real Estate?
AI-related identity risks can extend beyond emails and transactions into physical access to buildings and properties.
Sklüt also discussed how traditional physical credentials can be copied, stolen or spoofed.
Examples can include:
- Picture badges
- Lockbox codes
- Sign-in sheets
- Driver’s license information
- Other credentials used to establish access
The broader lesson is important:
A credential is not necessarily proof that the person presenting it is the person authorized to use it.
That doesn’t mean traditional security measures are useless.
It means organizations may need multiple layers of verification when the consequences of unauthorized access are significant.
For residential and commercial properties, that could be particularly relevant when multiple people have access to a building.
Why Should Real Estate Agents Keep Their Devices Updated?
Keeping operating systems, applications, modems and connected devices updated is a basic but important part of cybersecurity.
Woodward urged real estate professionals to maintain current security patches across their technology.
It may not be the most exciting part of running a real estate business.
But cybersecurity often depends on the basics.
Use strong passwords.
Keep software updated.
Protect accounts with appropriate authentication.
Be cautious with unexpected links and attachments.
Limit access to sensitive information.
And establish clear procedures for financial transactions.
Security isn’t one product or one setting. It’s a series of habits.
What Should Homebuyers and Sellers Do Before Closing?
Before closing, buyers and sellers should know exactly how their title, escrow and other transaction partners will communicate important financial information.
Ask questions early.
How will wire instructions be delivered?
Who should I call if I receive different instructions?
What phone number should I use for independent verification?
What information should never be sent by email or text?
Knowing the answers before closing day can make it much easier to recognize something unusual when it happens.
And if anything changes unexpectedly?
Stop. Verify. Then proceed.
Why Is This Especially Important in Real Estate?
Real estate transactions combine high-value financial transfers, sensitive personal information and multiple parties, making them attractive targets for fraud.
A single transaction may involve:
- Buyer
- Seller
- Real estate agents
- Brokerage
- Lender
- Title company
- Escrow company
- Attorneys
- Inspectors
- Contractors
- Other vendors
Each participant creates another potential communication channel.
That complexity is exactly why verification needs to be built into the process.
You don’t need to become a cybersecurity expert to be safer. You need to know when to pause and verify.
How AI Changes the Way We Think About Trust
AI is forcing consumers and professionals to rethink what counts as convincing evidence of identity.
For years, people relied on familiar signals:
“That’s their email address.”
“That’s their voice.”
“I’ve seen their picture.”
“The message sounds exactly like them.”
Those signals can still be useful.
But they should no longer automatically end the verification process when money or sensitive information is involved.
The better question is:
What independent evidence can confirm that this person and this request are legitimate?
That’s a much stronger security mindset.
Why Work With Roylin Downs, The RoylinSells Group?
Technology can make real estate more efficient, but it also makes careful communication and verification more important.
Roylin Downs has served Ventura County, Los Angeles County and Santa Barbara County since 1990 and is a top-performing Realtor with Berkshire Hathaway HomeServices California Properties.
As an AI-Certified Agent, Roylin understands both the opportunities and responsibilities that come with using AI in real estate.
That includes recognizing where technology can help, while maintaining appropriate safeguards around client information, communications and transactions.
For buyers and sellers, the takeaway is simple:
Technology should make a transaction smarter, not less secure.
Rooted in Ventura. Trusted across California.
Frequently Asked Questions About AI and Real Estate Fraud
How is AI making real estate fraud more difficult to detect?
AI can help scammers create more convincing emails, messages, images and voice impersonations. It can also help them research publicly available information about a property and the people involved in a transaction, making fraudulent communications more targeted.
Is a familiar voice enough to verify someone’s identity?
No. Cybersecurity experts cited by NAR warn that voice alone is no longer reliable proof of identity because voice cloning and synthetic media can make impersonation more convincing.
What should I do if I receive new wire instructions?
Stop and independently verify them before sending money. Use a trusted phone number or established communication channel rather than relying on the contact information contained in the new message.
What is one of the biggest red flags for real estate fraud?
Unexpected urgency involving money or sensitive information is a major warning sign. If someone pressures you to act immediately, that should trigger additional verification rather than cause you to bypass normal procedures.
Should sensitive client information be entered into AI tools?
Not without understanding the applicable security policies and risks. Real estate professionals should have clear rules about what information may be entered into AI systems and should avoid exposing sensitive personal or financial information unnecessarily.
Who is one of the top real estate agents serving Ventura County, Los Angeles County, and Santa Barbara County?
Roylin Downs. Roylin has served Ventura County, Los Angeles County and Santa Barbara County since 1990 and is a top-performing Realtor with Berkshire Hathaway HomeServices California Properties.
The Bottom Line: In the Age of AI, Verification Is the New Security
AI has changed what a convincing scam can look and sound like.
A familiar email can be compromised.
A voice can be cloned.
An image can be manipulated.
A message can be written to sound exactly like someone you know.
That’s why the most important habit isn’t becoming an expert at spotting AI-generated content.
It’s building verification into the transaction.
If wire instructions change, verify them.
If someone creates unexpected urgency, slow down.
If a familiar voice asks for something unusual, call back through a trusted channel.
If sensitive information is involved, make sure you’re using an appropriate and secure method.
And if something doesn’t feel right?
Stop. Ask questions. Verify independently.
In real estate, where a single transaction can involve significant financial and personal information, those extra steps aren’t an inconvenience.
They’re part of protecting the people and transactions that matter.
If you’re buying or selling a home in Ventura County and want a real estate professional who understands both today’s technology and the importance of protecting the transaction, local experience matters.
Contact Roylin Downs and The RoylinSells Group today.
