Criminals are increasingly using Artificial intelligence (AI) to carry out sophisticated property scams in South Africa, putting buyers, sellers, tenants, and even sectional title schemes at risk.
Fitzanne Estates CEO Pearl Scheltema explained that the risks are growing rapidly as scammers use technology to create more convincing and targeted attacks.
“AI can generate fake property listings, forge official documents, and even produce deepfake videos of supposed owners or agents,” Scheltema said.
“That’s why working with trusted property professionals, particularly experienced sectional title managing agents, is more important than ever.”
Recent international cases have shown how advanced these scams have become. In one incident in the United States, criminals used AI-generated deepfake videos to impersonate a property owner during a Zoom call, nearly succeeding in selling the home without the owner’s knowledge.
In South Africa, there has also been an increase in AI-assisted rental scams. Fraudsters create convincing online listings using AI-enhanced images and pressure victims into paying deposits or levies before viewings.
According to a report, AI is also being used to produce highly realistic identification documents and legal contracts. This makes fraudulent transactions more difficult to detect.
Sectional title schemes are attractive targets for these scams because they involve multiple owners, trustees, and service providers.
“In some schemes, levy statements have been intercepted and altered so that payments are redirected to a scammer’s account,” Scheltema explained.
“An email that looks like it’s from your managing agent, complete with AI-forged letterheads and signatures, can be incredibly convincing.”
The risks are not limited to sectional title schemes. Across the wider property market, AI scams are appearing in various forms, from fake rental listings with AI-generated interior photos to impersonated estate agents offering “urgent” deals.
Overseas, there have even been reports of AI-powered voice cloning used to imitate an agent or attorney over the phone, instructing clients to transfer funds into fraudulent accounts.
AI scams are not the only threat to the property market, either. Scammers are also taking photos from legitimate property adverts and posting them on social media platforms such as Facebook groups, Facebook Marketplace, and WhatsApp groups.
They lure people with attractive rental amounts and claim the property is in high demand. Victims are pressured to pay a deposit or viewing fee upfront, only to discover the listing was fake and the scammer has disappeared.
Staying safe on the property market
Scheltema advised property owners, trustees, tenants, and buyers to take specific steps to protect themselves from these AI scams.
“Always verify payment instructions directly with a known contact, be wary of urgent requests for funds, and confirm that any property professional you engage is registered with the relevant authority,” she said.
“For sectional title owners, regular attendance at trustee meetings and open communication with the managing agent can help ensure transparency and security.”
While these scams are concerning, Scheltema noted that AI and its use in the property market are not inherently negative.
“We use technology ourselves to streamline processes, improve communication, and enhance the security of the properties we manage. The challenge is making sure technology serves our clients rather than criminals,” she said.
According to Scheltema, professional sectional title managing agents are in a strong position to protect communities against these threats.
They can implement secure communication channels, confirm payment instructions in person or via verified calls, and educate trustees and owners about the warning signs of AI-generated scams.
Managing agents are the first line of defence against financial and digital threats. Because they know the industry and its risks, they can implement proper safeguards.
Although many of the most alarming AI property scams have so far been reported overseas, South African property professionals are seeing clear signs that these methods are making their way into the local market.
As more property transactions and communications shift online, both owners and professionals need to adapt, she said.
Source: dailyinvestor.com