Scams and fraud have always been a threat to landlords, but with the rapid development of AI, it is becoming an even larger problem. AI is able to realistically replicate documents, falsify identities, and more, making it much harder to spot fraud. In addition, AI is widely available, so more people are able to utilize these tools. Even with the rapidly changing landscape of AI rental scams, methods and strategies to combat this issue are improving just as fast. Be part of the solution by knowing what AI leasing fraud is and what to look out for.
Key Takeaways
- AI makes fraud easier and more convincing. Fake documents, identities, and even realistic audio/video are now widely accessible tools for scammers.
- Layer your defenses. Combine AI-detection tools, third-party background checks, document cross-referencing, and in-person verification for the best protection.
- Know the red flags. Watch for formatting inconsistencies in documents, evasive applicant behavior, and unverifiable references.
What Is AI Leasing Fraud?
AI leasing fraud is the use of artificial intelligence or digital tools to falsify, manipulate, or fabricate information, documents, identities, and other application materials to falsely lease an apartment. It is often difficult to spot using the typical screening tools, so landlords, their processes, and the tools they use are changing to meet this need.
Common Types of AI Rental Scams
AI is able to do many tasks, meaning it is used in a variety of scams as well. Here are some common types of AI leasing fraud that you may see.
Fake/manipulated documents
AI is able to replicate all kinds of documents, and it is getting better all the time. Whether it’s editing a document to erase red flags, generating text, or creating entirely fake ones, AI can do it all. Common fake documents include:
- Employment records
- Proof of income (bank statements, pay stubs, etc.)
- IDs
- Reference letters
- And more
False identities
These are not just IDs, but entire identities created by AI that people can submit as applicants instead of their real identity. These are often backed up by stolen identities and personal identifying information. Scammers use these AI-generated identities to falsely apply, making them look like the perfect applicant when they may not be.
In some cases, AI can even be used to generate extremely realistic media to make these identities seem like they actually exist. This can be through images, videos, and audio, all of which make it possible to get around remote verifications and make it hard for landlords to know they are speaking with a real person.
AI-usage in communications
AI doesn’t just generate documents; it can help scammers write convincing communication. From employment and reference letters to direct messages and emails, AI can help fraudulent applicants present themselves in a false manner. However, AI-sounding writing alone is not enough to reject an applicant since you can’t know for sure if they are using AI or not. Instead, use this as a sign to dig deeper into the application and verify their information more thoroughly through additional screening measures.
Fake cosigners or guarantors
Cosigners and guarantors act as a way to reduce your risk of taking on a tenant; however, you still need to vet them just as carefully as the applicant since AI can be used to fake these as well. A scammer may submit a fake cosigner or guarantor with strong income, good credit, and a strong employment background to help supplement their application.
Why AI Leasing Fraud Is Risky for Landlords
AI leasing fraud impacts more than just leasing; it also affects your day-to-day operations and finances. Fraudulent tenants can mean lengthy eviction processes, legal expenses, property damages, turnover costs, a loss of income, and more. These problems not only affect your profit and expenses but also add more onto your plate as a landlord. Taking a proactive approach during the leasing process is the most effective way to safeguard your properties and protect your bottom line from AI-driven fraud.
How Landlords Can Protect Themselves from AI Leasing Fraud
Techniques to combat AI leasing fraud are evolving with AI. There are many specialized tools, even AI-powered ones, that can help flag fake documents and other signs of scams using AI. However, these tools are not foolproof, which is why many landlords have adopted a combination of technology and human verification.
Cross-check documents
Cross-reference documents to confirm that all the information is consistent. For example, check the income from a pay stub and a bank statement to make sure the two align. Or check the address on the applicant’s ID to the one provided in the rental application. Require multiple forms of supporting documentation so you can cross-check them, such as multiple forms of identification and proof of income.
Keep an eye out for reused templates and information
AI is not perfect and can generate similar documents. This repeated information or template format is a sign of AI leasing fraud. A centralized screening tool can help identify these patterns and flag anything that is repeated or too similar.
Have a consistent screening policy
Screening all applicants consistently ensures that you find a good tenant. When every applicant has to pass the same checks, red flags and issues stand out. A clear process also helps you comply with fair housing laws and creates documentation of each step taken with an applicant.
Conduct a thorough background check including credit, criminal, and eviction reports
Don’t just accept background checks and reports from the applicant. Partner with a service, like Apartments.com Rental Tools, that does a thorough background check, including credit, criminal, and eviction reports. These tools pull information directly from reputable sources to avoid the issue of possible doctoring.
Use specialized tools
Tools for identifying AI scams are improving just as quickly as they flag AI-generated or AI-modified documents. Detection tools look for surface-level appearance inconsistencies like different fonts, template mismatches, unusual formatting, and more. However, they also do a much deeper analysis by examining the document’s structure, including pixel patterns, layer composition, metadata, and edit traces. That deeper analysis matters because AI-generated documents often leave behind clues that aren’t visible at a glance.
Hold in-person applicant interviews and tours
While images, videos, and phone calls are a good way to narrow down the applicant pool, increasingly realistic AI-generated media is adding a new challenge. AI-generated images, videos, and audio can make it tough to know if you are actually speaking to a real person, much less the actual applicant. That is why meeting the applicant face-to-face for a tour or interview helps prove they are actually who they say.
Maintain landlord insurance
Landlord insurance acts as a shield against some of the damages that AI leasing fraud can cause. It can help you recover the expenses from loss of rental income and non-occupied rentals under certain circumstances and if your policy includes these features.
AI Red Flags
While certain strategies and screening measures can help combat AI rental scams, you also need to know what to look out for during the leasing process. This includes both documents and information, but also the tenant’s behavior.
Document red flags
AI can make realistic documents, but they’re not always perfect. Here's how to spot fake documents:
- Inconsistent formatting (different fonts, misaligned numbers, uneven lines, misplaced decimals, etc.)
- Missing information
- Incorrect calculations
- Misspellings
- Illegible/blurry text
- AI-sounding language
- Letter “O” instead of the number zero
- Rounded numbers instead of exact amounts
Applicant behavior red flags
Meeting applicants in a tenant interview or during a tour also helps you confirm their identity and get a feel for what kind of tenant they may be. The rest of your interactions with them can be just as telling. Here are some other behavioral red flags to keep an eye out for:
- Rushing the process or creating urgency
- Asking to resubmit documents multiple times
- Avoiding meeting in-person or avoiding live verification
- Wanting to provide their own background checks and reports instead of following your process
- Not communicating via your preferred methods
- False or uncontactable references
- Inconsistent answer or information
Reference red flags
AI can even help fabricate landlord references, especially when it comes to written communication like emails or letters. Look out for:
- Suspicious email addresses (even personal email addresses can be a warning sign)
- Inability to answer basic property or tenancy questions
- Phone number not matching publicly available information
- Answers seem scripted
- Unverifiable contacts
Screen Smarter with Apartments.com Rental Tools
Protecting your rental business from AI-driven fraud starts with having the right screening tools in place. Apartments.com Rental Tools offers comprehensive tenant screening services that help landlords verify applicant identities and credentials with confidence. Screening reports include credit checks, criminal background checks, and eviction history so landlords have a fuller picture of who is actually applying for their property.
As AI leasing fraud becomes increasingly sophisticated, a rigorous screening process is more critical than ever. Apartments.com Rental Tools streamlines the verification process so landlords can make informed leasing decisions quickly, without cutting corners on due diligence. With reliable screening built directly into their rental management platform, landlords can stay one step ahead of fraudsters and protect their investment from the start.
FAQs
How to tell if a scammer is AI?
You can often spot AI leasing fraud by looking for inconsistent formatting, missing information, incorrect calculations, misspellings, blurry text, rounded numbers, AI-sounding language, repeated templates, unverifiable references, scripted answers, or applicants who avoid in-person meetings and live verification.
What are current rental scams?
Current rental scams include AI-generated or manipulated pay stubs, bank statements, IDs, employment records, reference letters, fake landlord references, false applicant identities, AI-written messages, and fake cosigners or guarantors used to make an unqualified applicant look trustworthy.
