Deepfakes are a serious threat to our industry; but AI can help us fight back.
In my last blog article, I discussed how deepfake fraud is a growing threat in the real estate industry and what you can do to combat it in your workplace. This time, I thought it would be helpful to take a deeper dive into some of the latest AI tools on the market that may be able to assist in these efforts. Of course, careful consideration is warranted before implementing any new solution, and it’s important to consult with your IT and security team to ensure it aligns with your business needs and data security standards. With that said, let鈥檚 dig in!
What is deepfake fraud?
Deepfake fraud has exploded in recent years, with some reporting showing an increase of over 2,000%. Scammers are using AI-generated videos and voices to impersonate real people convincingly. To combat this technology, experts have developed cutting-edge tools and techniques to recognize and stop deepfakes.
What are people doing about it?
Here are some of the latest detection methods that your agency might consider to keep deepfake fraudsters at bay. Here鈥檚 how they work.
AI-powered detection tools are designed to analyze videos and images in real time to detect whether they have been manipulated. Just a couple promising tools include:
HONOR’s AI Deepfake Detection – Launching April 2025 HONOR鈥檚 deepfake solution can be thought of as a built-in lie detector for images and videos. The technology scans media in real time and alerts users if something seems fake. This could help businesses and individuals avoid being misled by AI-generated content.[i]
Reality Defender – Real-time Deepfake Detection for Video Calls In a world of constant video meetings, it has unfortunately become possible for someone to get on a call with you and pretend to be your boss or a family member by using deepfake technology. Reality Defender combats this type of fraud by scanning facial movements, voice patterns and subtle glitches in real time. If anything is flagged, the technology alerts the user so they don鈥檛 become victims of scams.[ii]
Lightweight AI models are another tool people are deploying to deal with the rise of deepfakes and other fraudulent activity. These AI detection tools offer unique advantages to users. For one thing, they require far less computing power than other models, but they are still capable of effectively detecting deepfakes. Let鈥檚 look at a specific example:
Tiny-LaDeDa – A mini AI model with 96% accuracy Unlike traditional AI models that suck up an inordinate amount of power, Tiny-LaDeDa can sniff out deepfakes even while running on smaller devices. Despite being lightweight, it still claims to detect 96% of deepfake videos out there by analyzing tiny details in the way faces and voices are generated.[iii]
Comprehensive benchmarking frameworks
Given that deepfake technology is always evolving, cybersecurity researchers are not resting on their laurels. The industry has been developing standardized testing platforms to improve detection tools and ensure that security solutions can keep up with even the most creative of fraudsters. Let鈥檚 take a peek at some of the most notable:
DF40 鈥� A giant deepfake training library The DF40 library can be thought of like a gym for deepfake detectors. It contains thousands of deepfake samples created using 40 different AI techniques. Researchers can train and test tools against a wide variety of fake content, which enables them to get far better at spotting new ones as they come online.[iv]听
DeepfakeBench 鈥� A fair testing ground As with many cybersecurity tools, not all deepfake detectors are created equal. Additionally, some detectors are good at spotting one type of fraud but perform poorly when dealing with another. DeepfakeBench seeks to remedy this by ensuring that every detection tool is tested under the same conditions. It is an important solution for those who want to compare different products and assess which ones are the most effective.[v]
Smarter deepfake detection techniques
Sometimes, deepfake detectors can cause more problems than they solve. For example, certain tools may focus too much on 鈥渇ake-looking鈥� elements instead of checking if a person鈥檚 identity is real by cross-referencing IDs against verified data or analyzing biometric consistency. Luckily, there are many researchers currently working hard to fix this problem:
Rebalanced Deepfake Detection Protocol (RDDP) RDDP improves deepfake detection by making sure tools don鈥檛 just look for obvious digital artifacts like weird lighting or blurry patches. This prevents hackers from bypassing detection by using better-quality deepfakes.[vi]
Government and military efforts
Governments are also stepping into the fight against deepfake fraud, especially because deepfakes can pose a considerable risk to national security and election integrity.
Defense Advanced Research Projects Agency (DARPA) DARPA is an agency within Defense Department that focuses on investigating emerging technologies. As part of that effort, it is investing in AI tools that go beyond simple detection and combat deepfakes on a forensic level. The agency sees this work as a critical piece of the puzzle in dealing with everything from misinformation and identity fraud to protecting against AI-generated impersonations.[vii]听
Tools for real estate transactions
While deepfake technology is advancing, so too are the tools designed to prevent all types of fraud in real estate transactions.
SecureMyTransaction庐 from 海角吃瓜黑料 SecureMyTransaction (SMT) leverages AI-driven facial recognition to verify identities by comparing ID photos with selfie images, helping ensure that parties involved in a transaction are legitimate. In addition, SMT helps verify bank accounts and business entities to add multiple layers of security. By integrating these advanced fraud prevention tools into the title and escrow workflow, SMT provides an important safeguard against deepfakes and other fraud tactics. Learn more at.
Final thoughts
Scammers are increasingly using AI-powered deepfakes to target real estate transaction stakeholders鈥攚hich makes them a major threat to our industry. But thankfully, new detection technologies are pushing back on these ambitious criminals. For title agencies, it is imperative to understand how these solutions work and how they may enhance your cybersecurity posture. The threat landscape is always evolving, but by staying apprised of the most cutting-edge solutions out there, you can fight fraud and keep your agency moving forward.
From Sci-Fi to Real Life: The Evolution of Deepfake Technology
Once upon a time, the idea of digitally swapping faces or creating hyper-realistic videos of people saying things they never actually said was confined to Hollywood blockbusters. Think of movies where actors were digitally de-aged or deceased celebrities made surprising cameos. However, in 2017, a new term hit the internet: “deepfake.” It was a blend of “deep learning” and “fake,” originally coined when a Reddit user used AI to swap celebrities’ faces in videos.
Since then, deepfake technology has evolved at warp speed. While some use it for harmless fun鈥攍ike making historical figures 鈥渟ing鈥� pop songs鈥攐thers have taken a more sinister route. Today, deepfakes are used in political disinformation, identity fraud, and cybercrime, including the more recent entr茅e into the fraudulent diversion of funds and properties in real estate transactions.
The Rise of Deepfake Fraud in Real Estate
Deepfake fraud has been making headlines in unexpected ways, and real estate is one of the latest industries to be hit. In the past two years, fraudsters have harnessed AI-powered deepfake technology to pose as property owners, financial executives, and even notary publics.
Take, for example, a case from 2023 where a scammer used a deepfake voice to impersonate a real estate attorney in a communication with a client. The unsuspecting buyer was convinced that he was talking to his legitimate attorney and wired a six-figure down payment鈥攕traight into the scammer’s account.
Another shocking case involved a fraudster using a deepfake video to pose as a property owner looking to sell a luxury home. The scammer managed to fool not only the buyer, but also the title company, leading to the fraudulent sale of a multimillion-dollar estate.
Of course, there was also the fraudulent attempt to force a foreclosure sale of Graceland, Elvis Presley鈥檚 home, which made headlines in 2024.
How to Combat Deepfake Fraud in Real Estate
With deepfake technology becoming more advanced, spotting fakes is harder than ever. But that doesn鈥檛 mean we’re powerless. Here are some strategies to avoid falling victim:
Double-Verify Identities Don’t rely solely on phone calls, video calls, or emails. Always confirm identities through multiple channels鈥攕uch as in-person meetings, official documentation, and voice confirmation through previously established phone numbers.
Use Multi-Factor Authentication (MFA) When transferring funds or signing critical documents, consider requiring MFA. This adds an extra layer of security beyond just visual or voice verification.
Scrutinize Video Calls and Emails If something feels off鈥攍ike unnatural blinking, delayed audio sync, or robotic speech patterns鈥攂e skeptical. Deepfake videos often have subtle imperfections that can give them away.
Conduct Due Diligence If a new client or seller suddenly appears with urgent demands, do your due diligence. Check property records, verify business affiliations, and ensure everything aligns with known facts.
Leverage AI Detection Tools Just as AI is being used to create deepfakes, it’s also being used to detect them. Some AI-driven tools analyze facial movements, voice anomalies, and inconsistencies in digital assets to help identify fraudulent activity. In the real estate sphere, 庐, developed by 海角吃瓜黑料, applies AI facial-recognition technology to verify identity documents such as driver鈥檚 licenses and passports.
The Bottom Line
Deepfake technology is no longer a futuristic concern鈥攊t鈥檚 here, and it鈥檚 changing the way fraudsters operate. By staying vigilant and implementing multi-layered verification methods, you can ensure that your next property transaction doesn鈥檛 turn into a deepfake disaster.
See 海角吃瓜黑料鈥檚 most recent , which was inspired by a real-life attempt to commit wire fraud using deepfake technology.
The U.S. economy is expected to fare well in 2025, according to economists from across the spectrum, with few headwinds anticipated. However, forecasters are predicting only small gains in the real estate market, as interest rates remain stubbornly in +6% territory and inventory continues to show only modest improvement.
Investment firms Goldman Sachs and Charles Schwab are particularly optimistic about the potential for growth and expansion in the economy in the coming year. predicts GDP growth will reach 2.5% for 2025. 鈥淭he US economy is in a good place,鈥� said David Mericle, chief U.S. economist in GSR. 鈥淩ecession fears have diminished, inflation is trending back toward 2%, and the labor market has rebalanced but remains strong.鈥�
Internationally, envisions consistent 3% growth across the board in 2025, despite trade war concerns emanating from the threat of increased tariffs.
鈥淣ot one of the top 45 economies in the world are expected to be in recession next year,鈥� said Jeffrey Kleintop, Managing Director, Chief Global Investment Strategist in a Dec. 2 release. 鈥淢ost are expected to grow faster in 2025, including Europe, Japan, Canada, and the U.K., according to the latest outlook from the Organization for Economic Cooperation and Development (OECD), International Monetary Fund (IMF), and the consensus of economist forecasts tracked by Bloomberg.鈥�
While all of this should point to an improving housing market, there are still plenty of headwinds for consumers, including the elevated cost of living in general, as well as a tight housing market that has kept prices from moderating despite dwindling sales over the past year. That is not expected to change heading into 2025.
Recent data indicators, including resilient employment and cooling inflation, point to a stronger economic foundation, especially if interest rates moderate in 2025.
The Consumer Price Index rose 2.6% through October, up from 2.4% in the September data, but moderate compared to the peak of 9.1%. Employment has been surprisingly resilient with an unexpected jump in jobs numbers in September after a sluggish summer. And although jobs bottomed out in October due to two hurricanes and several significant labor strikes, the economy quickly rebounded by adding a healthy 227,000 jobs in November.
The continued strength of the economy has allayed some consumer fears, opening the door to the potential for increasing home sales in 2025.
Consumer Confidence
Although inflation has diminished consistently through 2024, persistent elevated prices from two years of high inflation continued to contribute to consumer frustration. As job growth lagged over the summer, consumers became increasingly pessimistic, but according to , that tide is beginning to turn.
鈥淐onsumer confidence continued to improve in November and reached the top of the range that has prevailed over the past two years,鈥� said Dana M. Peterson, Chief Economist at The Conference Board. 鈥淣ovember鈥檚 increase was driven by more positive consumer assessments of the present situation, particularly regarding the labor market. Compared to October, consumers were also substantially more optimistic about future job availability, which reached its highest level in almost three years.鈥�
The question foremost in the minds of real estate professionals is will all of this good news result in a stronger real estate market in 2025.
Interest rates hold the key to 2025 housing market
On Sept. 18, Federal Reserve Chair Jerome Powell announced a widely expected .5% point rate cut, saying it reflected the agency鈥檚 鈥済rowing confidence that, with an appropriate recalibration of our policy stance, strength in the labor market can be maintained in a context of moderate growth and inflation moving sustainably down to 2%.鈥�
More significantly, Powell noted that FOMC participants at the meeting prepared individual assessments of an appropriate path for the federal funds rate, determining that if the economy evolves as expected, the appropriate level of the federal funds rate would be 4.4% at the end of this year and 3.4% at the end of 2025.
The FOMC followed up with a 0.25% rate cut in November. However, during the December meeting, policymakers signaled a more restrained outlook for future rate cuts, reflecting concerns about inflation and broader economic conditions. The updated “dot plot” now indicates expectations for only two quarter-point cuts in 2025, marking a slower pace of monetary easing than previously anticipated.
Despite the Fed’s actions, mortgage rates have remained elevated, hovering around 6.5% through the final quarter of the year. This persistence in higher rates has further tempered expectations for the housing market.
In its , Freddie Mac noted that while the U.S. economy remained resilient with strong Q3 growth, unexpected volatility in mortgage rates has weighed on housing and mortgage activity.
鈥淎s we get into 2025, we anticipate that rates will gradually decline throughout the year,鈥� the GSE reported. 鈥淭he expected decline in mortgage rates in 2025 should loosen some of the rate lock-in effect for existing homeowners, offering more inventory in the market.鈥�
However, in its November Spotlight Report, Freddie Mac noted that the housing market continues to be plagued by a housing shortfall, which has persisted for years.
鈥淗ousing affordability remains one of the top economic issues facing American households,鈥� the GSE noted. 鈥淏oth homeowners and renters have seen the cost of housing increase faster than other consumer prices, putting a significant strain on household budgets. As we have documented in several previous research notes, the root cause of decreased housing affordability is the fact that housing supply has not increased enough to match demand. Inadequate housing supply leads homeowners and renters to bid up the sale price and rent of available housing, which puts a squeeze on affordability.鈥�
Fannie Mae has also revised its home sales projections for 2025, saying they are expected to rise by only 4% next year. According to the from the Fannie Mae (FNMA/OTCQB) Economic and Strategic Research (ESR) Group. the downward revision to the existing home sales outlook, which was previously forecast to rise 11% in 2025, is the result of significant upward movement in mortgage rates.
鈥淲hereas previously the ESR Group had expected mortgage rates to dip below 6% in early 2025, the revised forecast now shows mortgage rates ending 2025 at 6.3% and remaining above 6% through 2026,鈥� the report noted. 鈥淭he ESR Group does expect a significant improvement in existing home sales of around 17% in its inaugural 2026 forecast, as affordability conditions improve, the lock-in effect weakens, and pent-up demand to move materializes. Furthermore, the ESR Group continues to expect new home sales to improve on already-robust levels in both 2025 and 2026, as homebuilders continue to offer buyers incentives to move existing inventories.鈥�
A changing market
For real estate agents, the volatility of the 2024 real estate market was compounded by the National Association of Realtors (NAR) settlement, which brought significant changes to real estate practices. While these changes led many part-time agents to exit the profession, full-time professionals have quickly adapted and are ready to move forward under the new system.
In the mortgage arena, lenders have encouraged their loan officers to become far more consultative with their clients to ensure borrowers have the tools and knowledge to make the best decisions about the range of home they can afford and to be prepared to increase their downpayment to make their monthly payments more affordable.
Affordability and availability are going to be the keynote for a real estate comeback in communities across the U.S. in 2025 due to high interest rates and the persistent escalation of home prices. Migration trends may shift from states impacted by environmental disasters or housing markets that are overpriced to areas that boast affordability, availability and with fewer downsides such as high taxes and climate impact.
Real estate professionals should stay vigilant and adapt to these evolving trends within their regions, positioning themselves to better navigate market challenges and seize emerging opportunities in 2025 and beyond.
The buzz is in the air with more questions than answers.
FinCEN published its Final Anti-Money Laundering Regulations for Residential Real Estate Transfers on August 28, 2024 (鈥淔inal Rule鈥�), throwing the entire real estate industry into a state of high anxiety. What does it all mean? How do we meet its requirements? Will the expense of compliance be a financial drain 鈥� or even put us out of business? Title agents 鈥� who most often also fill the role of settlement or closing agents and would be the first elected reporter under the Final Rule 鈥� have been asking themselves these questions. While law firms and industry associations, as well as news outlets, have discussed the black letter text requirements set out in the , no one knows exactly how this is going to play out. Of course, our biggest fear is always the great and looming unknown.
So, what can we say and do to allay those fears? First of all, the Final Rule does not become effective until December 1, 2025. This gives the industry time to become prepared and adapt to the new requirements. Secondly, ALTA has stated in its , that it 鈥渨ill develop and provide several education and training opportunities to prepare the industry for the rule鈥檚 requirements.鈥�
Moving forward to operationalize the Final Rule, FinCEN released the unpublished version of its on November 12, 2024 with the formal published version to follow; thereafter the collection form is open for a 60 day comment period. Additionally, FinCEN agreed to provide as it goes through implementation. If saying 鈥渉elp will be on the way鈥� doesn鈥檛 quite do it for you, then think about the things that you can do now 鈥� including strategic planning 鈥� to take control, empower, educate and prepare yourself.
What kind of strategic planning are we talking about? Here are a few ideas:
Consider setting up a workflow to help you identify reportable transactions and direct the information, documents and forms to the appropriate personnel for processing the required report; including providing a secure intake portal to accept and store documents and forms containing non-public personal information
This would include identifying any order regarding a purchase of residential real property by an entity or trust/trustee for cash (without a traditional lender that has a required AML program and who must file SARS) as the term 鈥渞esidential real property鈥� is defined:
1-4 family occupancy residential units (e.g. a stand-alone, such as a single-family residence or townhouse; or even a unit within a multi-unit complex, such as a condo or shares in a coop; or even a residential unit in a mixed use building; as well as entire buildings designed for occupancy by one to four families)
Vacant land upon which the purchasing entity or trust/trustee intends to build a structure that is designed principally for occupancy by 1-4 families building such a residential real property
So, if you have an internal IT team or outsource your IT needs with a particular vendor, having a conversation with them now about how they can help you accomplish the work discussed above would not be premature.
Consider the Final Report鈥檚 required information, identifying what you already have and what you need to obtain from other sources 鈥� i.e. from the bank, from the purchaser鈥檚 representative, the seller or seller鈥檚 representative, and from the signer for the purchaser.
The Final Rule requires bank account information for the bank from which the source of funds originated. A title agent does not typically get that information on the wire confirmation or receipt that it receives from its own bank when an incoming wire or certified check is received or deposited. However, you can talk to your bank manager and inquire if the bank would be willing to provide you with that additional information on the documentation that it sends to you.
While the Final Rule only requires retention of the Purchaser鈥檚 Certification of Beneficial Ownership Information (and of any Designation Agreement that you may enter into), it is still both important and smart to retain all of the data in writing that is provided to you by others. If a question regarding your compliance should ever arise, then you would have documented evidence to show what you relied upon. This would apply to even an analysis of whether or not you have a reportable transaction under the Final Rule. For example, if the transaction is a purchase of vacant land, you may want to have the buyer鈥檚 representative state its future intent for the land in writing (because if it doesn鈥檛 intend to build a structure that is designed principally for occupancy by 1-4 families, then you don鈥檛 have a reportable transaction under the Final Rule).
Consider the cost of compliance with the Final Rule and how you can make your process be the most efficient and effective in terms of the expense 鈥� and perhaps even recoup some of the expense depending upon what your state law and regulator allow.
The biggest cost driver is going to be the administrative personnel鈥檚 time for those who will be working on collecting the data and reporting it. Here are some tips that may help:
Have two well-trained staff members whose education, experience, workload and market rate are appropriate for the time and tasks required to comply with the Final Rule. In case one staff member is unavailable to do the reporting, you will have ready coverage by having a backup person. Remember that there is a due date for compliance 鈥� which is the later of either:
(i) the final day of the month following the month in which the date of closing occurred; or
(ii) 30 calendar days after the date of closing.
In other words, if November 1st is the closing date, then December 31st would be the last day for submitting a timely report to FinCEN.
If you have very few transactions that would be subject to reporting under the Final Rule, perhaps it does not make sense for you to have your own staff members trained to take on the task. In that event, you may want to investigate your options for designating another reporter as identified in the Final Rule. In this event, you would want to do your due diligence and vetting in advance of December 1, 2025. Be aware that if you see a vendor advertising to provide this service, unless it is identified as an optional designated reporter within the Final Rule, it cannot relieve you of your reporting responsibilities.
This can鈥檛 be stressed enough: collect the data from the respective parties or people before the closing date. Our experience with FinCEN鈥檚 Geographic Targeting Orders has shown that if you wait until after closing, then you will be wasting a lot of time (and money) chasing after the needed information.
If you have repeat entity or trust customers who typically purchase residential real estate for cash, educate them in advance of the effective date of the Final Rule regarding what to expect. This may help your customers to have their information ready for data collection while at the same time building their trusted relationship with you. The Final Rule does not require confidentiality as to its contents.
Since the Final Rule does not discuss recoupment of cost, there is no federal prohibition against it. Your state laws and regulators will be the ones who ultimately determine what kind of recoupment, if any, is allowed for the expense you will incur to comply with the Final Rule. Start having conversations with your state land title association early, as they are your advocates and may be able to provide you with guidance from your state regulators.
Stay abreast of developments (e.g. any amendments to the Final Rule or FinCEN FAQs) by subscribing to (sent to you via email or text messages). Also, keep an eye out for ALTA鈥檚 publications and resources as they become available.
Read informative articles from trusted sources. One such recent article that is worthy of mention is , published September 9, 2024.
Review the which has 111 distinct fields; get familiar with the form and write down your questions for future discussion.
海角吃瓜黑料 is with Dream Finders Homes, one of the fastest-growing homebuilders in the country. This is an exciting announcement, and it was only possible because of the support of our agents. I鈥檇 like to take this moment to share what this means for our agents, and why we can all look forward to this new chapter together.
First and foremost, let me assure you that our mission remains the same: we are committed to independent title agents and the model that makes 海角吃瓜黑料 special. Dream Finders recognizes the value in our independent approach, and our success because of it. They love what we do, and they want to help us do more of it.
Our partnership with Dream Finders is all about growth and new opportunities to better serve our agents. Through this collaboration, our team will gain access to additional resources and capabilities that will allow us to expand our reach and elevate the support we provide. Dream Finders shares our vision of building something enduring and impactful. 2025 marks 海角吃瓜黑料’s 20th year of operations, and in that time, our team has worked to place our relationship with you at the heart of everything we do. Our partnership with Dream Finders will help us strengthen those relationships. We are excited to supercharge our capabilities while staying true to our core mission and values.
In this time of transition, I would also like to acknowledge Presidio Investors, which acquired 海角吃瓜黑料 in 2018. Their support facilitated our evolution and expansion over the last several years, and we are deeply grateful for everything we have accomplished together. I know change can sometimes feel unsettling, but I’m confident that joining Dream Finders will allow 海角吃瓜黑料 to become an even stronger partner for you in the years to come.
Thank you for your continued trust and friendship. This is just the beginning of a new and exciting chapter for 海角吃瓜黑料, and I am honored to be on this journey with you.
