5 real estate scams fueled by AI that buyers and sellers should know

Cyber-enabled fraud surged in 2025, with total losses exceeding $20 billion, according to the FBI’s Internet Crime Complaint Center report. Real estate transactions are particularly vulnerable, accounting for over 12,000 fraud complaints and losses exceeding $275 million. Scammers increasingly rely on AI to mimic property owners, real estate professionals, and even title companies, exploiting the urgency and complexity of home sales. HomeLight surveyed 950 top-rated real estate agents nationwide to identify the most common AI-driven scams. One prevalent tactic involves sellers who refuse in-person or video meetings, communicating only via email or text. These fraudsters often list properties below market value, demand quick closings with minimal contingencies, and insist on using a specific title company—a red flag indicating potential deception. Another scheme targets buyers with fake wire instructions. Scammers spoof emails or messages from lenders or title companies, directing funds to fraudulent accounts. Victims may receive urgent requests to wire money immediately, exploiting pressure to finalize transactions. AI-generated documents and stolen identities make these scams harder to detect. Agents report scammers also impersonate buyers, submitting fraudulent offers to inflate property values or divert earnest money deposits. Some use AI to create fake identities, making it difficult for sellers to verify legitimacy. Matthew Gibbs, an agent in Middletown, New York, warns that unoccupied homes or vacant land are prime targets for these schemes. To protect against AI-driven fraud, experts advise verifying identities through direct communication, avoiding rushed transactions, and using reputable title companies. Kip Barnard, a San Jose-based agent with 22 years of experience, recommends insisting on in-person or video verification before proceeding with any sale. The FBI’s report highlights the need for heightened vigilance as scammers continue to leverage emerging technologies to scale their operations.