realestate

As AI falls into wrong hands, industry concerns turn to stark reality

Florida Title and Trust representatives verified Margaret McCartney's identity via Zoom, but the meeting didn't proceed as expected.

F
lorida Title and Trust representatives joined a Zoom meeting with Margaret McCartney to verify her identity before selling her vacant Hallandale Beach property. However, they were unexpectedly connected with an AI-generated deepfake impersonating an elderly woman instead of McCartney. The scammer had created the fake using a photo of a 76-year-old missing California woman, and even fabricated a license and passport.

    Florida Title and Trust President Lauren Albrecht quickly realized that McCartney was not human but rather a sophisticated AI dupe. "I caught it," she said, "but that doesn't stop them from trying it with another realtor or title company." This incident highlights the growing concern of AI fraud in real estate, as highlighted by the National Association of Realtors in March.

    The technology behind these scams is still primitive but will continue to improve, potentially leading to a surge in incidents. The Broward County Property Appraiser's office is already investigating an AI-related real estate case and expects more to come. "It's just going to get more sophisticated," said Marty Kiar, the property appraiser.

Industry experts discuss AI ethics in wake of misuse and security breaches globally.