Artificial Intelligence used to be something that was talked about in the “future” tense, something that we only experienced through futuristic movies and TV shows. Well, the future has arrived! We continue to see more companies launch their own Artificial Intelligence technology, and we have seen just how realistic some of these programs can be.

While AI brings many positive technological advances, it also brings opportunities for these advances to be used for fraudulent activity.  AI can be fraudulently used in real estate to create fake listings and impersonate real estate agents or other professionals involved in the sale of a property to defraud home buyers and sellers. Below are some tips to help increase safety and security when buying or selling your home.

1. Be cautious when receiving unsolicited emails: Scammers may use deep fakes to create convincing videos or audio messages, which can be used to deceive people. If you receive an email with a link or attachment from an unknown sender, do not click on it. Instead, verify the sender’s identity before opening the email.
2. Use reputable real estate agents: When buying or selling a home, it is essential to work with a reputable real estate agent who is well-versed in the market. They can help you avoid scams and fraudulent transactions. You can also check their online reviews and ratings to ensure their authenticity. Connect with any of our LUVA Real Estate Agents here (link to agent directory.
3. Verify identity and credentials: When communicating with someone over chat or email, make sure to verify their identity and credentials. This goes for agents, lenders, escrow/title companies, and anyone involved in your real estate transaction.
4. Be cautious of chatbots and automated messages: With the increasing use of AI in real estate, some companies are using chatbots or automated messages to communicate with buyers and sellers. While these tools can be helpful, we at LUVA Real Estate prefer to be a bit more personal than chatbots and automated messages. With your Real Estate Agent, determine your preferred method of communication (text, email, phone call) and if you are receiving any messages that you believe to be automated or from a chatbot – be sure to confirm that the message came from your agent before sharing any information. Make sure you are communicating with a real person and not a chatbot.
5. Educate yourself about deep fakes: Deep fakes are becoming increasingly sophisticated, and it can be challenging to spot them. Educate yourself about the technology and how it can be used to deceive people. Stay informed about the latest scams and techniques used by scammers.
6. Wire Fraud and AI: Preventing wire fraud has been a top priority involved in real estate transactions for years now and in the times of advanced AI, it is now more of an important topic than ever. Do your best to prevent yourself from wire fraud by verifying wire directions through multiple forms of communication with your escrow officer.

In summary, it is crucial to stay vigilant and cautious when buying or selling a home. By following these tips, you can reduce the risk of falling victim to scams and fraudulent transactions.