How AI Is Fueling a New Wave of Property Scams in South Africa

South Africans are no strangers to scams, but criminals are now taking their tricks to the next level, using Artificial Intelligence (AI) to pull off increasingly convincing property fraud. From fake rental listings to forged levy statements, buyers, tenants, and sectional title owners are finding themselves at risk in ways that weren’t possible just a few years ago.

When Tech Turns Against You

Pearl Scheltema, CEO of Fitzanne Estates, has raised the alarm, warning that scammers are harnessing AI to create fake property adverts, deepfake videos, and even forged identity documents that are almost impossible to spot at first glance.

“An email that looks like it’s from your managing agent, complete with AI-forged letterheads and signatures, can be incredibly convincing,” she explained.

The result? Unsuspecting victims are pressured into paying deposits, levies, or “urgency fees” to secure properties that don’t exist or to bank accounts that belong to criminals.

Sectional Title Communities in the Crosshairs

While scams hit across the housing market, sectional title schemes have become particularly attractive to fraudsters. With multiple owners, trustees, and service providers involved, these communities generate a steady flow of levy statements and financial transactionsperfect conditions for scams.

Criminals intercept legitimate levy invoices, alter the payment details, and reroute funds into fraudulent accounts. For residents, this not only drains pockets but also sows mistrust among neighbours who suddenly find themselves in disputes about missing payments.

Social Media: A Marketplace for Scammers

The problem isn’t confined to emails or levy statements. According to Anton Jansen van Vuuren, COO of Harcourts South Africa, fraudsters are increasingly turning to platforms like Facebook Marketplace and RentUncle to lure tenants.

These sites are popular because of their accessibility, but their lack of strict verification makes them fertile ground for fake listings. Scammers often advertise below-market prices, then pressure would-be tenants with lines like “this property is in high demand pay now to secure it.”

It’s a classic scam tactic, but with AI-enhanced images and documents, the deception looks far more professional than the crude attempts of the past.

A Global Trend With Local Impacts

While South Africa is now grappling with these high-tech scams, the trend isn’t unique. Overseas, criminals have already used AI voice-cloning tools to impersonate estate agents and attorneys over the phone, tricking buyers into transferring massive sums.

The difference is that South Africa’s already vulnerable property sector strained by affordability issues, limited regulation of online platforms, and rising housing demand, makes fertile ground for such schemes.

How to Stay Safe

Scheltema and other experts stress that vigilance is the strongest defence. Her advice:

• Verify payment details directly with a known contact before sending money.

• Beware of urgent demands for funds – scammers thrive on pressure tactics.

• Check credentials – ensure that any estate agent or property professional is registered with the relevant authorities.

• Stay engaged – sectional title owners should participate in trustee meetings to strengthen transparency and community resilience.

“Technology itself isn’t the enemy,” Scheltema pointed out. “We use it every day to improve communication and security. The challenge is ensuring it works for clients, not criminals.”

As South Africa adapts to the digital age, so too must its citizens. AI may be helping scammers level up their game, but informed buyers, vigilant tenants, and trusted professionals can make all the difference in keeping communities safe.

The next time that “too-good-to-be-true” listing pops up on your feed, remember: in today’s market, it probably is.

{Source: BusinessTech}

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