BiggerPockets Daily Rental Fraud Becomes More Sophisticated as AI Software Dramatically Improves
9 snips
Oct 23, 2025 Scammers are becoming increasingly sophisticated, using AI-generated documents and stolen identities to exploit landlords. Small property owners are particularly vulnerable due to limited resources. Trends like remote leasing and new construction are fueling these fraudulent activities. Important tactics for landlords include requiring in-person viewings and adopting strict lease policies before accepting rent. Additionally, advanced screening tools are recommended to help identify potential fraud and keep properties safe from evolving scams.
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AI Enables Convincing Fake Applicant Profiles
- Rental fraud now includes AI-generated documents and stolen identities that can pass casual review.
- This technology shift lets scammers create full fictional profiles that defeat traditional screening.
Small Landlords Are Primary Targets
- Fraud detection tools exist but remain costly and less accessible to small landlords.
- Smaller owners lack bandwidth and enterprise tools, making them prime targets for sophisticated scams.
Remote Leasing And Incentives Widen Fraud Risks
- Remote leasing and pandemic-era processes amplified fraud by removing in-person checks.
- Free-rent incentives and online-only applications create openings scammers exploit to move in without upfront funds.