Real estate agents across Florida faced a series of sophisticated fraud attempts in August. These attacks involved fraudsters using advanced technology to impersonate agents' family members, demanding money under false pretenses. The incidents highlight growing cybersecurity risks in the real estate sector.
Key Takeaways
- Fraudsters targeted 36 real estate agents in Florida using advanced impersonation tactics.
- The scams involved AI-generated voices and spoofed phone numbers, making calls appear legitimate.
- Victims' family members received urgent calls demanding money, believing their loved ones were in danger.
- Only a few families sent money, but the incidents caused significant emotional distress.
- Cybersecurity experts emphasize the need for stronger identity verification and multi-channel communication in real estate transactions.
Sophisticated Impersonation Attacks
The fraudulent activities began with an early morning phone call to the mother of a real estate agent. The caller's number appeared identical to her daughter's. The photo on the caller ID also matched her daughter's image. This made the call seem legitimate.
Casey Bryan, president of Berkshire Hathaway HomeServices Florida Properties Group, described the initial incident. She stated the agent's mother answered the call around 2:00 AM. A male voice on the line claimed to have her daughter. He threatened the daughter's life if money was not sent immediately. The mother also reported hearing what sounded like her daughter crying in the background.
In this first case, the agent's mother sent $1,000 to the fraudster. She later discovered her daughter was safe and had never been in danger. This single event caused significant trauma for Bryan and her team. However, it was not an isolated incident. Similar calls targeted another agent the following night.
Fraud Statistics
- 36 agents were impacted by the targeting scheme.
- Most victims were female, but some male agents also received threats.
- Only a small number of families ultimately fell for the scams and sent money.
Targeted Attacks on Real Estate Professionals
After several similar incidents, Bryan and her team realized their agents were specifically being targeted. "It wasn’t until it happened about three or four times that we realized that it was our agents specifically being targeted," Bryan explained.
Investigators believe fraudsters obtained a roster of agents. They then systematically worked through the alphabetized list. Their goal was to find family members of each agent to defraud. "We saw it happening to the A’s, then the C’s and eventually we could warn the D’s that they needed to tell their family member what to potentially expect," Bryan said.
The nature of the threats escalated over time. As the fraudsters reached agents further down the alphabet, their tone became more aggressive. They also began making threats of sexual assault against the agents. In total, 36 agents were affected by these scams. The majority were female, but a few male agents were also targeted.
"I’m going to pat ourselves on the back for a second, because I think we did a really good job of overcommunicating what was happening. As we saw trends and knew what letter would be next, we were able to inform our agents so they could talk to their families and prepare them."
— Casey Bryan, President of BHHS Florida Properties Group
Cybersecurity Awareness Becomes Critical
Despite the widespread targeting, only a few families sent money to the fraudsters. Bryan acknowledged that the outcome could have been much worse. However, the incidents served as a significant reminder. They highlighted the critical importance of cybersecurity and identity verification. This is especially true for the large financial transactions real estate agents handle daily.
Bryan emphasized the company's existing vigilance. "We are already super vigilant, and we have an IT department that ensures any type of attack or breach is mitigated before it even happens," she stated. "But then stuff like this happens and I think the only way to combat it is through knowledge. There is no way we are going to stop bad people from doing bad things, but we can be aware that they exist."
The Rise of AI-Powered Fraud
The speed of technological advancement allows fraudsters to create more sophisticated and believable schemes. Cybersecurity experts agree that sharing experiences like Bryan's is vital. This helps the industry prepare for emerging threats. Older fraud attempts often had obvious signals. Now, machine learning and AI agents make fraud feel very real.
Fraud in the Artificial Intelligence Age
Arpitha Gadag, director of fraud and risk products at CertifID, noted the changing landscape. "There used to be very obvious signals that someone had found your data and was impersonating you and it was easy to catch," Gadag said. "But what we are seeing in this new age of technology not only with machine learning but AI agents is that fraud is becoming more prevalent everywhere, and it is getting scary because they can make it feel so real."
The increased frequency of these attacks is partly due to the accessibility of inexpensive tools. These tools allow for the creation of deepfakes and the impersonation of phone numbers and contacts. Pat Kinsel, CEO of Proof, stated, "The bad news is that deepfakes are way more pervasive than people think."
Even Sam Altman, CEO of OpenAI, has publicly acknowledged the issue. He noted that generative AI has bypassed many identity verification methods used by financial services. Matt O’Neill, former head of financial cybercrime investigations at U.S. Secret Service and co-founder of 5OH Consulting, confirmed that deepfake tools are now standard for fraudsters. "Over the last six months these applications have become even better and more widely available," O'Neill explained. "We’ve gone from it taking 40 minutes to an hour to render a voice to make it say what you want, to now it is a matter of minutes."
Prevention and Preparation Strategies
Real estate cybersecurity experts recommend regular identity checks. This is crucial for verifying individuals involved in transactions. Gadag suggested implementing a series of checks throughout the customer's lifecycle. These checks should analyze identity, behavioral data, device analytics, contextual signals, and biometric information. This includes verifying identity through selfies.
O’Neill offers a simpler method: verify information received through one communication channel using a different channel. He noted that the real estate industry often lags behind others in cybersecurity controls. "We still see a lot of business email compromise and agents are still using email as a primary means of communication regarding very sensitive information," O’Neill said.
He advises against relying solely on email for sensitive communications. Ideally, a secure platform should be used. More importantly, never send money based only on an email. Always call a known correct number to verify instructions and information.
O’Neill also recommended family voice passcodes. If someone's identity is questioned during a call, a family-specific word can be requested. This provides an extra layer of security. "It is so easy to fake voices and now we are seeing fake video calls," he warned. "So it really makes you think especially as we are seeing these late-night family emergency extortion attempts."
Bryan and her agents are moving forward with these risks in mind. While no one suffered physical harm, the emotional impact was significant. "The trauma it created in our offices was pretty significant," Bryan concluded. "We had agents in tears. And even when we got further into the alphabet and an agent and their family knew it was coming, it was still very upsetting."
