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11 Modern Rental Fraud Schemes and How Real Estate Pros Can Stop Them
Tech & Tools

11 Modern Rental Fraud Schemes and How Real Estate Pros Can Stop Them

February 20, 2026 6 min listen 0 reads

In today's rapidly shifting digital environment, rental fraud has evolved far beyond basic Craigslist tricks. It is now powered by high-tech tools like artificial intelligence and deepfake media. Data shows that real estate wire fraud has surged fourfold over the last five years, creating a significant threat for both agents and property investors. This article curates 11 of the most effective and actionable strategies from a comprehensive analysis, helping real estate agents focus on high-impact tactics that drive results in 2025.

1. Sophisticated Wire Fraud

Wire fraud remains one of the most financially devastating scams in the industry. Hackers often monitor communications to intercept wire instructions at the final moment of a closing. In 2023 alone, Business Email Compromise (BEC) schemes resulted in approximately $2.9 billion in reported losses, with the real estate sector being a primary target.

  • How to Spot It: Be extremely wary of sudden, last-minute changes to wiring instructions delivered via email or text. Scammers frequently use AI to mimic the tone or even the voice of trusted escrow officers.
  • Expert Strategy: Never trust email for financial data. Use platforms like CertifID to validate identities and secure transfers with insurance. Always perform a "call-back" to a verified phone number before sending funds.

2. The Squatting and Fake Listing Trap

Squatters are increasingly tech-savvy, sometimes forging ownership papers to list a vacant home on Airbnb or Facebook Marketplace. They collect deposits from victims while the actual owner is completely unaware.

  • How to Spot It: Monitor your vacant properties through non-Wi-Fi dependent security cameras. If neighbors report activity you didn't authorize, or if you find your own property listed on a rental site by someone else, take immediate action.
  • Expert Strategy: Watermark every listing photo so they cannot be easily stolen. Services like PropertyShield can provide real-time monitoring to detect and automatically take down unauthorized listings of your property.

3. Data Phishing and Account Takeovers

With roughly 3.4 billion phishing emails sent daily, property owners are constant targets. Clicking a single malicious link can give a fraudster full access to your financial data and tenant records.

  • How to Spot It: Look for minor typos in sender addresses or unusual phrasing. High-pressure requests to update banking details are major red flags.
  • Expert Strategy: Implement Multi-Factor Authentication (MFA) on all professional accounts. Consider cyber insurance from providers like Pro Group International to mitigate potential financial fallout from a breach.

4. AI-Generated Document Forgery

Fraudsters are now using AI to craft incredibly convincing fake deeds, identification cards, and proof-of-funds letters to deceive investors during the due diligence phase.

  • How to Spot It: Look for tiny inconsistencies in fonts, seals, or layouts. Always verify ownership via official county tax records and title companies rather than relying on documents provided by a stranger.
  • Expert Strategy: Use identity verification tools like Forewarn to check a prospect’s history for past bankruptcies or legal issues. Ensure every major document is cleared through a neutral third-party title officer.

5. ListingHub.ai Listing Description Writer

While protecting against fraud is essential, maintaining high-quality, professional communication is equally important to attract legitimate tenants. ListingHub.ai offers an AI-driven tool specifically designed to generate SEO-optimized listing descriptions and localized social media content from basic property details.

  • What it does: This platform creates multiple content outputs including MLS descriptions, Instagram captions, Facebook updates, and email blasts in various tones ranging from luxury to professional.
  • Key Features: It features automatic hashtag generation, keyword optimization for search engines, and a URL parsing tool that can extract data directly from Zillow or Redfin to save time.
  • Best For: Property managers and agents who need to maintain a consistent, high-quality brand presence across several marketing channels simultaneously.
  • Pricing: Offers a free tier for up to 5 generations per day, with credit-based options for higher volume needs.

6. The 'No Rent Intent' Tenant

In this scenario, a tenant pays the security deposit and the first month's rent but never makes another payment, exploiting local laws to stay in the unit for months during the eviction process.

  • How to Spot It: Be cautious of applicants who pressure you to skip the screening process or offer extra cash upfront to bypass traditional background checks.
  • Expert Strategy: Use comprehensive screening software like Avail to verify employment, credit scores, and past rental history. Solid documentation at the start is your best defense in housing court later.

7. Service Animal Documentation Fraud

Landlords frequently encounter forged Emotional Support Animal (ESA) letters designed to bypass pet restrictions or fees, which can lead to unexpected property damage.

  • How to Spot It: Many fake letters come from online "certification mills." Check the credentials of the signing healthcare professional.
  • Expert Strategy: Educate yourself on HUD and ADA guidelines. Call the medical provider listed on the letter directly to confirm they have an active relationship with the tenant, rather than just trusting the paper.

8. Voice-Cloning and Deepfake Calls

By using just a few seconds of recorded audio, scammers can clone the voice of a property manager or real estate partner to request urgent wire transfers or sensitive login credentials.

  • How to Spot It: If a call involves extreme urgency or asks for something outside of normal procedure, hang up and call the person back on their known, saved phone number.
  • Expert Strategy: Establish "secret passphrases" with your team or clients for high-stakes transactions. If the person on the other end can't provide the code, assume the audio is a deepfake.

9. Fractional Ownership and Seminar Scams

Scammers lure investors with "guaranteed" high returns on partial ownership of luxury properties or high-priced "secret" investment seminars that turn out to be high-pressure sales pitches for worthless assets.

  • How to Spot It: If the returns are significantly higher than market averages or if you are pressured to pay large fees immediately to "lock in" a spot, walk away.
  • Expert Strategy: Conduct your own due diligence through independent property records. Research the track record of seminar speakers through the Better Business Bureau (BBB) before investing a cent.

10. Fraudulent Rent and Security Checks

This traditional scam involves sending a fake check for more than the required amount and asking the landlord to wire back the "excess." By the time the bank realizes the check is stolen or forged, the landlord’s money is gone.

  • How to Spot It: Any request to refund overpayments from an unverified check is a scam.
  • Expert Strategy: Move away from paper checks entirely. Utilize secure digital rent collection tools like Baselane to ensure all payments are authenticated before you grant property access.

11. Occupancy Misrepresentation

Tenants may lie about the number of occupants to avoid extra fees or because additional residents would not pass a background check. This often leads to excessive wear, noise complaints, and legal liability.

  • How to Spot It: Secretive behavior during walkthroughs or reports from neighbors about high traffic are clear indicators of unauthorized sub-tenants.
  • Expert Strategy: Use lease agreements with strict occupancy limits and clear penalties for violations. Digital safety apps like TetherRE can help verify the identities of all adults living on the premises before the lease starts.

Final Thoughts

Real estate wealth is built on security and trust. By implementing these technological safeguards—from secure payment platforms to AI-assisted marketing tools—you can protect your assets against modern fraudsters. Stay alert, formalize your verification processes, and never let urgency override your due diligence.

11 Modern Rental Fraud Schemes and How Real Estate Pros Can Stop Them
0:00 / 5:42
Host 2: Real estate wire fraud has surged fourfold over the last five years, and with AI-powered deepfakes entering the mix, the stakes have never been higher.
Host 1: It’s a completely different landscape than it was even two years ago. We aren't just looking for typos in emails anymore; we’re looking for sophisticated tech-driven scams.
Host 2: Today we’re covering the top 7 strategies from this comprehensive guide to help you protect your assets and your clients in 2025.
Host 1: They’re playing the long game. They monitor email threads for months, waiting for the closing day.At the final hour, they’ll send an email that looks identical to the escrow officer’s, claiming there’s a "last-minute change" to the wiring instructions.
Host 2: Let’s start with the big one—wire fraud. These schemes resulted in nearly $3 billion in losses recently. How are hackers getting past professional agents?
Host 1: If the client hits send, that money is gone.
Host 2: So, even if the email looks perfectly legitimate, what is the hard-and-fast rule for 2025?
Host 1: Never trust email for financial data—period. You need to use a dedicated validation platform like CertifID. But more importantly, implement a mandatory "call-back" protocol.
Host 2: Moving on to the tech side—AI isn't just for writing descriptions. Scammers are using it to forge deeds and proof-of-funds. How do we spot a fake that looks perfect?
Host 1: Before a single dollar moves, you or the client must call a verified, pre-existing phone number to confirm the details. Do not use the phone number listed in the "new" email instructions.
Host 2: Are there specific tools that can help an agent vet these prospects before they even get to the document stage?
Host 1: You have to stop relying on the documents a prospect hands you. In 2025, if someone provides a proof-of-funds letter or a deed, you assume it's AI-generated until proven otherwise.
Host 2: This next one sounds like science fiction, but it’s real: voice-cloning. Someone calls claiming to be a partner or a manager, and it sounds exactly like them.
Host 1: You need to verify ownership directly through official county tax records and neutral third-party title companies.
Host 2: If the voice sounds identical, how can an agent possibly defend against that?
Host 1: Use identity verification tools like Forewarn. It allows you to check a prospect’s criminal and financial history instantly.
Host 2: Let's talk about property security. Squatters are now forging papers and listing vacant homes they don’t own on Airbnb.
Host 1: If a "cash buyer" has three recent bankruptcies that didn't show up on their forged documents, you’ve just saved yourself a massive headache.
Host 2: Is there a more "active" way to monitor these vacant properties?
Host 1: It only takes about 30 seconds of recorded audio from a YouTube video or a social media clip for a scammer to clone a voice.They’ll call an assistant or a client with an "emergency" request for a wire transfer or a password.
Host 2: We're seeing a rise in "No-Rent-Intent" tenants—people who pay the first month and then exploit local laws to stay for free for a year. What’s the red flag there?
Host 1: Because the voice is familiar, the victim’s guard drops.
Host 2: Another classic that's still catching people is the "excess funds" check scam.
Host 1: You establish "secret passphrases." It sounds old-school, but it’s the only way to beat deepfakes. If your team or your client receives a high-stakes request, they ask for the code.
Host 2: Is the solution just to wait for the check to clear?
Host 1: If the person on the other end can't provide it, you hang up immediately.
Host 2: Finally, while we’re talking about tech, let’s look at the offensive side. How can agents use AI to stay professional and avoid looking like the scammers themselves?
Host 1: Exactly. They collect deposits from unsuspecting victims while the actual owner is unaware. To fight this, you have to watermark every single listing photo.It stops scammers from "scraping" your photos to create those fake ads.
Host 2: Great insights. To recap the top takeaways: First, never move money based on an email—always use a call-back protocol. Second, use passphrases to defeat voice-cloning.
Host 1: Use non-Wi-Fi-dependent security cameras. Professional scammers will often cut the internet or use signal jammers.
Host 2: And third, move all payments to secure digital platforms like Baselane to avoid check fraud.
Host 1: Also, look into services like PropertyShield; they monitor the web 24/7 and automatically issue takedown notices if your property address pops up on an unauthorized site.
Host 1: The biggest red flag is pressure. They’ll offer extra cash upfront or try to convince you to skip the formal screening because they "need to move in tonight." Never skip the process.Use a platform like Avail to verify employment and past rental history.
Host 1: A few hundred dollars in cash today is not worth a ten-month eviction battle tomorrow.
Host 1: This is simple but effective. A tenant sends a digital or paper check for $2,000 over the required amount "by mistake" and asks you to wire back the difference.
Host 1: By the time the bank marks the original check as stolen or forged, you’ve already wired your own real money back to them.
Host 1: No, because "cleared" doesn't mean "verified." The best move is to stop accepting paper checks entirely. Move to secure digital rent collection tools like Baselane.
Host 1: This ensures the payment is authenticated and the funds are actually there before you ever hand over the keys.
Host 1: It’s about consistency. If your listings look sloppy, you attract the wrong crowd.Tools like ListingHub.ai are great because they take basic property specs and generate SEO-optimized descriptions and social media content.
Host 1: It keeps your brand looking high-end and professional across Instagram, Facebook, and the MLS, which builds the trust necessary to attract legitimate, high-quality tenants.
Host 1: That’s our top strategies—go implement them today.