Security experts are sounding the alarm about the potential impact of artificial intelligence (AI)-generated deepfakes – synthetic audio or video files manipulated to recreate someone’s likeness – on real estate fraud. There is.
Earlier this year, Hong Kong authorities report A group of fraudsters used deepfake technology to steal $25 million from a multinational company by impersonating the company’s chief financial officer in a video call with an employee and tricking the employee into transferring funds. He is said to have stolen more than that.
As deepfakes become more realistic and convincing, experts say fraudsters are using the technology to impersonate real estate professionals in order to steal payments or collect sensitive information. I am concerned that this may be the case. Even prudent real estate investors can experience financial loss and identity theft if they become the target of such schemes.
the elusive red flag
All financial transactions carry the risk of fraud, but it used to be easy for investors to protect themselves if they were properly educated. For example, a buyer can watch for misspelled email addresses and other signs of wire fraud, and confirm transactions with real estate agents over the phone. But these red flags are now more difficult to spot. Scammers can spoof a real estate agent’s phone number and use deepfake audio to impersonate the real estate agent’s voice.
Actor and director Jordan Peele warned of the dangers of generative AI in 2018. deepfake video Barack Obama warns Americans about online misinformation. “These are dangerous times. Going forward, we need to be even more wary of what we trust from the internet,” President Obama appeared to say in the video, but viewers may actually see After careful editing and 56 hours of processing, we were witnessing Jordan Peele’s performance.
There was something off about this video besides the humorous script. Characteristics of deepfake videos At that time, there were jerky facial movements and changes in lighting. However, as technology advances further, it becomes easier for scammers to fool even the most observant people.
National Association of Realtors Note Face-to-face communication at some point in a transaction is essential to protecting people from fraud. In other words, long distance investor You should contact the local agent directly to at least get a real phone number to call directly for verification.
Fraudsters can also use AI to manipulate more than audio and video. AI systems can generate forged document Contributes to seller impersonation fraud or other schemes.
Fraud is on the rise and what is being done to combat it
As AI technology advances and fraudsters become more easily exploited on a daily basis, investment fraud becomes more prevalent and victims suffer greater financial losses. Investment fraud recorded more than $4 billion of funds stolen in 2023, while total losses due to fraudsters amounted to $2.7 billion. data From the Federal Trade Commission. The median loss from investment-related fraud was $7,768. He was also more likely to report identity theft in 2023 than he was in 2023. past few years.
According to a study, AI fraud was one of the five most common types of investment fraud in 2023. analysis FBI and FTC data conducted by Carlson Law. Software that detects AI content can help, but it’s not 100% accurate. The same goes for content provenance, which helps increase transparency around where content comes from and whether it was created by humans or AI.of Content Reliability InitiativeA group of technology companies, academic societies, and other organizations working toward an industry standard for verifying the authenticity of content through open source development.
Another challenge is the need for lawmakers to quickly adapt to rapid advances in AI technology. And in the meantime, high tech companies AI tools are increasingly being made easily accessible to everyday people.
But policymakers are trying to play catch-up. Last fall, the Biden administration issued the following statement: presidential order Establish security standards, foster the development of privacy measures, prevent AI from violating civil rights, capture the potential of AI in healthcare and education, promote research on labor market impacts, and ensure responsible use of tools by government agencies. Designed for security purposes.
In February, the FTC also Trade Control Rules Against Government and Corporate Impersonationthe chairman said. insufficient Until it was completed due to advances in technology. The rule would allow the FTC to bring fraudsters impersonating businesses or the government to federal court.
In light of the increase in complaints from individuals regarding identity fraud, the FTC also Supplementary provisions This will extend protection to individual victims of fraud. Additionally, the European Commission has stated that the proposed amendments would “restrict companies, such as AI platforms that create images, videos, and text, from offering goods or services that they know or have reason to know are fraudulent.” It is seeking public comment on whether it should be declared illegal. It is used to harm consumers through identity theft. ”
The latter provision would allow the FTC to hold tech companies accountable for providing AI tools that facilitate fraud, potentially making tech companies wary of offering new deepfake technology to users. There is.
Media literacy is especially important at a time when reliable detection tools and appropriate protection and enforcement measures are not yet available. Investors are generally skeptical of anything that seems false or too good to be true, double check the authenticity of documents and payment instructions, and stay informed about new technology and current scams. is needed.
how to protect yourself
AI can help solve the problems it creates by detecting fake documents based on learned patterns. In late 2022, Intel will Deepfake detection platform Currently, AI-generated videos can be identified with 96% accuracy. However, AI detection will always be a step behind innovation, so it’s important for investors to take other precautions.
National Cyber Security Alliance It is recommended next:
- Be careful what you share. Switch your social media settings to private or use watermarks on public images to limit public access to your personal photo and video content.
- Follow AI News: Stay tuned to the latest updates in AI technology and new scams so you know what to look for.
- Be wary of phishing attempts. Be suspicious of anything that comes from unknown sources. Always verify the sender’s identity before following any payment instructions in an email or text message, clicking any links, downloading files, or sharing sensitive information. When communicating via video call, be aware that there may be urgent demands or reluctance to connect directly over the phone or in person.
- Report a deepfake: If you discover deepfake content that impersonates your likeness or someone you know, please report it to the platform and file a complaint to have it removed. federal authorities. Please seek legal professional help if necessary.
double edged sword
Despite the risk of fraud, advances in generative AI continue to provide important and time-saving resources for real estate professionals, even as they increase the risk of fraud.Investors and agents are already using it chatbot Although intended to streamline communication, the true potential of generative AI in real estate is yet to be fully realized.McKinsey & Company Estimate The added value to the real estate industry as a result of generative AI could be between $110 billion and $180 billion.
According to McKinsey, real estate companies are already using AI to streamline processes, improve customer satisfaction and tenant retention, develop new revenue streams, and make faster (and smarter) investment decisions. As a result, net operating income has increased by more than 10%.
Most real estate investors today look at multiple data sources to analyze the market and whether a property will be profitable. However, McKinsey points out that advanced generative AI tools with access to the right data can perform multidimensional analysis to prioritize which listed stocks investors should consider. This is especially useful for beginners with no investment experience when making decisions. With fine-tuned AI tools, a hopeful investor might be able to simply ask, for example, “Which available duplex in Cleveland should I invest in?”
This is just one way AI tools can give investors more free time and enable more profitable decisions.
conclusion
There is no doubt that AI technology will disrupt the real estate industry, creating new vulnerabilities in transactions while also allowing investors to act with precision and communicate with ease. However, the pace at which generative AI tools are advancing and becoming available will undoubtedly challenge policymakers and institutions dedicated to fraud prevention.
AI can ultimately have a positive impact on your business if you can leverage technology in your day-to-day operations while staying informed and taking steps to prevent fraud.
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