Deepfake Fraud in Real Estate: What Every Buyer, Seller, and Agent Needs to Know

The Latest AI-Enabled Fraud Trend is Changing the Real Estate Closing Process

The rapid advance of artificial intelligence is transforming every sector—including real estate. From enhanced phishing attacks to targeting password vaults, cybercriminals have continued evolving their fraud tactics to prey on unsuspecting victims. In recent years, one of the most pressing concerns has become the use of deepfake technology for fraud.

During the first quarter of 2025, deepfake-enabled fraud caused over $200 million in financial losses. Real estate is one of the industries hit hardest —and for good reason. When you're dealing with six-figure down payments and million-dollar properties, criminals know exactly where to strike.

Let's break down this issue together and explore actionable solutions for anyone navigating today's complex real estate market.

What Is Deepfake Technology?

Deepfakes are AI-generated images, audio, or videos that convincingly mimic real people or events, often making it difficult to distinguish actual footage from fakes. At the core, deepfakes involve machine learning algorithms—typically generative adversarial networks (GANs)—that 'learn' from vast amounts of data to produce highly realistic digital content. What started as a curious novelty in entertainment quickly grew into a tool for deception across sectors—politics, business, social media, and, increasingly, real estate.

The democratization of AI tools has lowered the entry barrier for creating deepfakes, allowing anyone with basic tech skills to manipulate property images, documents, and even virtual tours. In the real estate sector, the implications can be severe given the high-stakes nature of transactions and the trust required between parties.

How Deepfakes are Created Using Public Information

Think about it. Scammers can now craft a flawless digital impersonation of anyone using just a handful of voice samples from YouTube or a few photos from LinkedIn. With as little as 30 seconds of audio, they can replicate someone's voice with unsettling precision. The technology isn't merely improving; it's becoming more accessible and affordable. What once demanded Hollywood-level expertise and sophisticated equipment can now be done in mere hours for under $10 a month. That's right— for the cost of a streaming service subscription, fraudsters can impersonate your client, your attorney, or even you.

The Impact of Deepfake Fraud on Real Estate Transactions

Deepfake fraud in real estate can take many shapes, disrupting both residential and commercial deals. Common forms include:

• Forged identity videos—fraudsters impersonate sellers, buyers, or agents via altered video calls or submitted clips.
• Manipulated property photos and virtual tours—fakes may conceal defects, exaggerate features, or even fabricate entire properties.
• Counterfeit documents—lease agreements, deeds, and financial documents can be faked using advanced AI tools.

Examples of Deepfake Fraud in Real Estate

Several case studies have brought these dangers into sharp focus.

Remote Closing with Deepfake Video

In one incident, scammers created a deepfake video of a property owner authorizing a wire transfer, tricking both a buyer and an agent and resulting in hundreds of thousands of dollars in losses.

AI-Generated Listing Photos

Another example involved manipulated listing photos that showcased luxurious amenities that never existed, generating bids before the scam was uncovered at closing.

Buyers, sellers, and agents all face risks. Loss of funds, exposure to legal disputes, and reputational damage are real consequences. For real estate and title agents, failing to spot a deepfake can mean liability or regulatory scrutiny.

How to Identify Deepfake Content

Spotting deepfakes requires both technical savvy and a skeptical eye. While 60% of people claim they're confident in their ability to identify deepfakes, only 0.1% can actually do it accurately.

Watch for Key Indicators

• Subtle mismatches in lighting, shadows, or reflections on photos or videos.
• Unnatural facial movements and odd blurring on video communications.
• Inconsistent background details or artifacts when zooming in on images.

Use Deepfake Detection Tools

• AI-based platforms such as Deepware Scanner, Microsoft Video Authenticator, and Intel's FakeCatcher are specially designed to detect manipulated media.
• Browser plug-ins and image forensics software can help verify image authenticity before making decisions.

Best Practices to Combat Deepfakes in Real Estate

1. Insist on multiple forms of verification, such as requesting live in-person walkthroughs in addition to virtual tours.
2. Cross-check documents and ownership through trusted authorities and title companies, never relying solely on digital submissions.
3. Set up a simple verification system with clients and colleagues. If someone calls asking you to wire money or change account numbers, have them provide a pre-agreed code word that only the real person would know.

Protecting Yourself Against Deepfake Fraud

Proactive steps are key to staying one step ahead of deepfake scams. If you come across them, make sure to protect yourself and your business with the following steps:

1. Immediately flag and report any suspicious media or odd behavior during communications—don't risk moving forward with any transaction until legitimacy is confirmed.
2. Real estate professionals should educate their teams, clients, and partners about deepfakes and incorporate regular authenticity checks into their workflows.
3. Invest in cybersecurity tools and secure digital signing methods for contracts or financial documents.

Staying Informed and Prepared

With the evolution of AI, staying updated is both a personal and professional duty. Resources like the FBI's public bulletins, NAR's (National Association of Realtors) risk management guides, and training modules offered through platforms like LearnPrompting.org help keep everyone informed of the latest threats and solutions.

Title insurance remains a crucial safeguard against record fraud—by covering losses from forged deeds, false owners, or fraudulent liens, it adds a vital layer of financial protection to every transaction.

Regular education on digital security and fraud prevention ensures real estate professionals, buyers and sellers are adequately equipped to spot and stop threats before they escalate. Real estate's digital frontier is exciting, but also requires vigilance, smart tech adoption and trusted community education. By understanding the risks and applying best practices, everyone can help keep fraudsters at bay and the marketplace safer for all.

For continued updates on deepfake fraud trends, actionable tips and insights from real experts, follow Stewart Title on LinkedIn, Facebook and Instagram.

Cyber hygiene is more than just good passwords; it means securing personal data, scrutinizing unfamiliar contacts, and protecting financial transfers with multi-factor authentication.

Read more articles about cybersecurity in the real estate industry:
How Business Email Compromise (BEC) Attacks Real Estate Transactions
Passwords Are Key to Cybersecurity
Wire Fraud 101: What is Wire Fraud and How Can You Prevent It?