Real estate fraud cases in the United States increased sharply in 2025. According to FBI data, 12,368 complaints related to real estate fraud were reported last year, with total losses of around $275 million, equivalent to more than ₹2,300 crore. In 2024, 9,359 such complaints were recorded, with losses of about $174 million, or nearly ₹1,450 crore. The figures indicate a significant year-on-year rise in both complaints and financial losses.
Real estate fraud covers several types of scams, but fake rental property listings have emerged as a growing concern. Scammers often copy existing listings of genuine houses or apartments from legitimate real estate websites. They use the same photographs, descriptions and, in some cases, video tours. They then replace the contact details and payment information and pose as landlords or authorised agents.
How Scammers Create Fake Listings
Scammers often advertise properties at rents slightly below the prevailing market rate to attract potential tenants quickly. They then make excuses to demand advance payments, security deposits or application fees. In several cases, prospective tenants are prevented from physically inspecting the property.
In one case from Southern California, a two-bedroom bungalow was advertised at an attractive rental price. The person claiming to be the landlord told the prospective tenant that an in-person viewing was not possible because the existing tenants had not yet moved out. To build trust, the person sent a professional video tour of the property.
The video was genuine, but it had been copied from an earlier legitimate listing. The victim eventually sent more than $2,500, or around ₹2.1 lakh, through Zelle to the supposed landlord. The person then stopped responding.
AI Is Also Being Used
Artificial intelligence is increasingly becoming part of the real estate fraud landscape. According to the FBI, 115 complaints in 2025 specifically referenced AI, involving reported losses of nearly $2.7 million, or around ₹22.5 crore.
AI can help scammers create more convincing messages, documents and fake identities. However, many real estate fraud schemes still depend on copied property photographs, fabricated identities and stolen listings.
The competitive rental market and limited availability of affordable housing can also make tenants more vulnerable. People facing school or college admission deadlines, job relocations, expiring leases or the possibility of losing an affordable property may feel pressured to make payments before properly verifying the landlord or property.
Warning Signs Tenants Should Watch For
An unusually low rent, pressure to make an immediate payment and refusal to allow an in-person property inspection should be treated as major warning signs. A professional-looking video tour does not prove that the person sending it actually owns or manages the property.
Tenants should search the complete property address online and compare information across multiple sources. They should also conduct reverse-image searches of property photographs to determine whether the same images have appeared in older or unrelated listings.
The identity of the landlord should be verified through available property records. If a real estate agent or property management company is mentioned, tenants should independently obtain its contact details and confirm the listing directly with the organisation.
Most importantly, tenants should never send a deposit or advance payment before verifying both the property and the identity of the person offering it for rent. Requests for payment through services such as Zelle, cryptocurrency, gift cards or wire transfers should be treated with particular caution because recovering authorised payments can be difficult.
Anyone who has already fallen victim to such a scam should immediately contact their bank or payment service provider and report the transaction as fraud. Screenshots, emails, chat records, payment receipts and copies of the property listing should be preserved as evidence.
The fraudulent listing should also be reported to the platform where it was posted, along with the relevant authorities.
