AI seen as major fraud threat to private rental sector
Summary
Research cited in the article suggests that letting agents are increasingly concerned about financial fraud, with AI-enabled impersonation and deepfake scams now viewed as the biggest emerging threat to client money safeguards. A significant minority of respondents lack full confidence in their ability to detect suspicious transactions before funds are transferred, and many have encountered attempted fraud in the past year.
Why it matters
Residential property surveyors working alongside letting and management functions should be aware that fraud risks are becoming more sophisticated, particularly where client money handling and identity verification are involved. The findings reinforce the need for robust controls, verification processes and awareness of AI-assisted scams across the wider property sector.
Key points
- 36% of letting agents are not fully confident they can identify suspicious client money transactions before transfer.
- 35% reported an attempted financial fraud or scam linked to lettings activity in the last 12 months.
- AI-generated fraud, impersonation and deepfake scams were identified as the biggest future threat.
- Phishing and impersonation of landlords or tenants remain the most commonly encountered fraud types.
- Most respondents believe exposure to fraud and scams has increased over the past three years.
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