By Abria Hamberg, Marco Lima, and Stephanie Munthe 

Housing scams have surged, and some of them are using artificial intelligence (AI) to trick unsuspecting renters. Scammers in Rhode Island are increasingly listing fraudulent housing rentals and schemes, and college students, especially international students, may be especially vulnerable. What makes these scams particularly scary is the sophisticated use of AI-generated content, such as audio and video deepfakes, which can accurately impersonate real estate agents and even mimic video conferences.

Here’s how a rental scam typically unfolds: Fraudsters create AI-generated listings for rental properties or homes for sale, complete with photos, descriptions, and contact information. These listings often appear on reputable online platforms, making them appear trustworthy. 

Once a potential victim seems interested in a property, the scammers contact them through AI-generated emails or text messages, presenting themselves as legitimate landlords, real estate agents, or property managers. They may provide false assurances, offer enticing deals, and pressure renters to act quickly to secure the property.  Some even use AI-powered chatbots to handle initial inquiries from potential victims. These chatbots are programmed to respond to common questions and concerns.

To further deceive victims, these scammers arrange virtual property tours using AI-generated videos or conduct phone calls using AI voice technology. They provide plausible explanations for why the property cannot be viewed in person or insist on remote transactions, citing various reasons such as COVID-19 restrictions or personal circumstances.

In 2021, housing scams cost Rhode Islanders nearly $1.5 million. In one instance, according to the Federal Bureau of Investigations, a University of Rhode Island student wired $1,800 for an apartment in Wakefield in response to an online advertisement on Facebook Marketplace. He was told he couldn’t see the apartment because the landlord is always traveling.

In the first two months of 2023, Rhode Island Association of Realtors reported that scammers posed as vacant land owners at least six times, even using the true owners’ names in email addresses. In one instance, a scammer signed contracts with a cash buyer, but the true owner intervened upon discovering the unauthorized sale. In another case, a broker found a seller offering land well below market value, located out of state, and displaying unfamiliarity with the area.

To protect yourself from falling victim to an AI rental scam in Rhode Island, there are several precautions you can take. 

Firstly, always conduct thorough research on the property and the landlord or property manager. Verify the legitimacy of the listing by cross-referencing it with reputable rental platforms and conducting reverse image searches on property photos to ensure they are not stolen from other sources.

Secondly, be wary of red flags such as requests for upfront payments or personal information before viewing the property in person. Legitimate landlords typically do not require payment or sensitive data until after a rental agreement has been signed and keys have been exchanged. If a landlord insists on remote transactions or provides vague excuses for why the property cannot be shown, proceed with caution and consider it a potential warning sign of a scam.

Additionally, trust your instincts and exercise caution when communicating with landlords or property managers online. If something feels off or too good to be true, it probably is. Do not hesitate to ask for additional proof of identity or documentation, such as a copy of the property deed or lease agreement, to verify the legitimacy of the listing.

In conclusion, while AI has undoubtedly transformed the way we interact with content online, it has also given rise to new challenges in the form of sophisticated scams. In Rhode Island’s housing market, renters must remain vigilant and skeptical of AI-generated rental listings to avoid falling victim to fraud.