AI raises stakes on rental scams

Criminals are creating more sophisticated scams, putting tenants and applicants at greater risk.

Fake rental activity is a long-standing problem for the industry, and not only in South Africa. Criminals create fake rental listings and then put pressure on applicants to pay fees and deposits.

However, they are now harder to detect. Traditionally, criminals used stolen photos from real property listings, which could be spotted by observant rental agents. Now, they are making increasing use of AI to generate listing photos from scratch. Some more sophisticated criminals are even using AI to create fake video walkthroughs, or videos from fake owners or agents to make their scams more convincing.

The problem doesn’t end with rental listings. Some property professionals also warn that criminals are generating more convincing fake payment requests using AI, purporting to be from managing agents. They warn that tenants of sectional title properties are increasingly being targeted for this kind of scam.

What can agents do?

Scams like this can be a real threat to agencies’ reputations if scammers use their branding. They can also be difficult to guard against. Not all platforms verify listings, leaving it up to agents to scan for listings using their details and report them.

The other thing agencies can do is educate tenants and applicants on what to look out for. Ask tenants to verify suspicious payment requests by contacting your agency using contact details they already know, not just by replying to the e-mail they received. When searching for a new home to rent, it’s safer to go directly to a trusted rental agency than to use a platform that doesn’t verify listings.