Deed Fraud: How Scammers Are Using AI to Try to Steal Multimillion Dollar Properties

October 2, 2024
2 mins read
Architectural Digest logo


Albrecht experienced this first-hand when her company was hired for a potential vacant land sale that ended up being fraudulent. The “owner” provided a deed with identification from West Virginia, but their bank account was based in the Bahamas. “That was the first red flag,” she says. Following the firm’s standard practices, she asked for a proof of life video, in which the seller joins a video call and shows two forms of ID on camera. After sending a Zoom link, “I was very shocked that somebody actually appeared,” she says. Though it looked like a real person, who did appear to match the photos of the provided West Virginia driver’s license, the face on the other side of the computer was eerily unresponsive. “It was just somebody sitting in front of a camera making small movements, and we quickly realized those movements were repetitive.”

Though Albrecht doesn’t know exactly what type of software was used, it was likely a deepfake AI-generated video using the likeness of a real person not involved in the scam. “We did a reverse image search of the ID image, and it was a photo from a missing person’s flyer in California,” Albrecht says. “It’s heartbreaking, because a family whose grandmother, sister, or mother is missing have to see their loved one’s image used in this way.”

Scammers most often target vacant properties or land rather than residences owners currently live in. According to the New York City Department of Finance, seniors, immigrants, and people of color are most at risk for these types of scams, though anyone who owns property could be a victim. Once a fake deed is filed, it’s up to the rightful owner to prove ownership in court, which can be an expensive and drawn-out process. If the home is unlawfully sold, it creates an additional mess for the new “owner,” who may have moved in, built infrastructure, or otherwise used the property.

Deed fraud is considered rare, though a number of high-profile occurrences have brought the topic to light.

Photo: Getty Images

“As licensees, we have the fiduciary obligation to confirm identities to the best of our abilities and confirm ownership of any property sale,” Albrecht says. Strictly written communication, the desire for a quick transaction, and asking for an all-cash sale are among the most common indicators of potential fraud, she adds.

From an ownership perspective, the NYC Department of Finance recommends purchasing title insurance, which can protect against financial losses should there be a defect in your title, in addition to a number of best practices including not leaving properties vacant for extended periods of time and making it clear who inherits your property when you pass away.

Albrecht also notes that unencumbered properties can be more at risk, since having another party involved such as a bank for a mortgage acts as an unofficial extra layer of protection. “I own my house fully, but my husband and I recorded a mortgage against our property for a company,” she says. “I don’t actually owe myself any money, but it protects the property because it can’t be sold unless that mortgage is satisfied.”



Source link

curationteam

Curation Team will curate content from different sources and present for you. We will not edit any content. Source link is provided for the source from where its received .

Leave a Reply

Your email address will not be published.

Architectural Digest logo
Previous Story

Early Prime Day Home Deals 2024—Our Editors’s Picks

Architectural Digest logo
Next Story

Victoria and David Beckham Embrace the Sunshine State With New $80 Million Mansion

Latest from Blog