Your screening process may not be enough anymore.
Rental fraud has always been part of the property management landscape, but what's happening right now is different. The tools available to fraudsters have changed dramatically, and the financial stakes have never been higher.
According to the FBI's Internet Crime Complaint Center, cybercriminals stole more than $275 million through real estate-related fraud in 2025, based on more than 12,000 complaints filed that year alone. That's a jump from $173 million in losses reported in 2024, a surge that federal agencies are attributing in large part to the rise of AI-enabled schemes.
For rental property owners, the threat appears at the application stage.
How the Fraud Works
Gone are the days of obviously doctored pay stubs with mismatched fonts. Today's fraudsters use generative AI to produce fake bank statements, employment letters, and income documentation that look completely legitimate. According to the FBI's report, AI technology now enables the creation of convincing synthetic content at scale, making schemes harder to detect and more convincing than ever before.
Synthetic identity fraud takes it a step further. Rather than stealing someone's identity outright, bad actors combine a real Social Security number with fabricated personal details to create a brand-new "person" with a functioning credit history. That applicant can pass a standard background check without triggering a single red flag.
By the time the fraud surfaces, the damage is already done: missed rent, costly evictions, and in some cases, significant property damage.
Why Self-Managing Landlords Are Most at Risk
Individual landlords who manage their own properties typically rely on basic screening tools that were not built to catch this level of sophistication. Professional property management companies use layered screening technology that goes beyond a standard credit pull, including document forensics, identity verification, and income source validation that connects directly to payroll data rather than relying on uploaded documents.
Benjamin Gene, President of Keyes Property Management, puts it plainly: "What we're seeing now isn't the fraud of five years ago. AI has made it possible for a completely fabricated person, with a real credit score and convincing documentation, to apply for your property. Standard screening was never built for that."
For property owners who aren't working with a professional management team, now is a good time to reconsider. The fraud environment has changed, and the cost of getting it wrong has never been higher.
Protecting Your Investment
The right property management team brings screening infrastructure that most individual landlords don't have access to on their own. To learn more about how Keyes Property Management protects owner investments, visit keyespm.com or contact Benjamin Gene at bgene@keyespm.com.
Data and Information Sources
FBI 2025 IC3 Report (primary): ic3.gov
National Association of Realtors, April 13, 2026: nar.realtor
RISMedia, April 13, 2026: rismedia.com
