Real estate fraud involves illegal activities carried out during the buying and selling of real estate. These activities include increasing the price of real estate more than its normal value and trading with fake documents and identities. As it is a fairly common type of fraud, it is essential to take the necessary precautions.

What are Real Estate Fraud Types?

1. Property Value Manipulation: This type of fraud is carried out by misleadingly increasing the value of real estate. With fake documents or misleading information, the market value of the property is displayed higher and investors or buyers are deceived. This type of manipulation of property value is quite common.
2. Counterfeit Tenant/Buyer Fraud: Fraudsters act as potential buyers or sellers of real estate. In this process, carried out with fake documents, sometimes the owner of the property is also manipulated with a request for a prepayment or deposit. Scammers, who often have a trusted identity, can receive a high amount of unfair payments.
3. Property Phishing: Fraudsters can redirect tenants or buyers to fake websites by impersonating real estate ads. You can steal personal information or get paid by fooling people through these websites.
4. Property Owner Phishing: Fraudsters can perform real estate transactions by pretending to own property with fake identities or with fake attorneyship documents.

How to use AI for fraud detection?

The danger of fraud affects the real estate sector as well as every sector. It is necessary to develop some strategies to be alert against real estate fraud and take the necessary precautions. The most prominent among these strategies is the use of artificial intelligence because it is very effective in detecting and preventing real estate fraud. The methods used through artificial intelligence are as follows;

1. Data Analytics and Pattern Recognition: Artificial intelligence can identify patterns that point to fraud by analyzing large datasets. For example, similar properties of fake documents or certain patterns such as unusual transactions can be detected. This is important because it can protect against fraud by detecting even minor deviations from standard behavior patterns.
2. Machine Learning Algorithms: Machine learning can be used to analyze complex relationships and behaviors related to real estate fraud. Based on current data, algorithms can predict future fraud attempts and develop prevention strategies.
3. Text and Image Processing: Artificial intelligence can automatically analyze real estate ads, documents, and images using text and image processing techniques. In this way, fake documents or misleading advertisements can be easily detected and fraud prevented.
4. Behavioral Analysis: Artificial intelligence can perform behavioral analysis and create profiles by tracking users’ online behavior. These profiles can identify and recognize unusual and potentially dangerous activities. For example, it can be effective in detecting suspicious activities, such as shopping between multiple accounts or frequently changing IP addresses.

Artificial intelligence-supported fraud detection systems effectively provide companies in the real estate sector with the opportunity to prevent fraud. These systems can detect fraud signs more quickly and effectively than traditional methods, and can greatly help businesses.