Written for Daily Hive Urbanized by Hashim Arthur, who is the chief operating officer of Coldwell Banker Canada.

The phone rings with a familiar voice, urging a last-minute change to wire transfer details. An email arrives, perfectly phrased, seemingly from your realtor or lawyer. A Zoom call even shows the face of a trusted agent. In each case, something is very wrong. And by the time anyone realizes, the money is gone.

This is not science fiction. This is the unsettling new reality of real estate fraud in Canada, powered by deepfake technology and artificial intelligence (AI). As the chief operating officer of Coldwell Banker Canada, I don’t believe our industry can afford to sit still. This is a full-blown threat to our credibility, our clients, and the future of trust in real estate. We must act boldly, intelligently, and immediately.

Deepfakes were once a tech curiosity. Today, these AI-generated videos, voices, and images have evolved into an advanced tool of deception. With just a few seconds of audio, scammers can convincingly clone a person’s voice. Fake documents and impersonated professionals can now be generated with startling ease. In some alarming cases, homebuyers have been duped into wiring hundreds of thousands of dollars based on false information provided by someone impersonating their lawyer or agent.

Canadian real estate is not immune. This year, the Canadian Anti-Fraud Centre warned of a rise in deepfake videos being used in scams, where well-known figures appear to endorse fake investments. And while we haven’t yet seen a high-profile deepfake real estate scam on Canadian soil, the foundation is already cracking; organized fraud rings have been impersonating homeowners with frightening success.

In Ontario and B.C., at least 32 properties have been targeted by title fraud schemes where impostors pose as owners or tenants. In one case, a Toronto condo was sold out from under its rightful owner by scammers using fake IDs and stolen credentials. These fraudsters gave performances worthy of an Emmy to pass as the sellers. Now, with AI tools, the barrier to entry for such deception is even lower; a convincing fake persona can be generated with a few clicks, potentially fooling even a video closing or online ID check.

In the U.S. in 2023, the FBI tallied nearly 21,500 business email compromise cases across industries, resulting in over $2.9 billion in losses. Real estate transactions represented a significant portion of those cases, largely because of the volume and speed of money movement and the number of third parties involved. Meanwhile, a recent KPMG Canada survey found that 87 per cent of companies believe the shift to remote operations has increased the risk of fraud.

These threats are not just inconvenient. They are corrosive. They erode the essential trust that underpins our industry. And they are growing more convincing by the day. While AI-enabled impersonation is clearly illegal under existing fraud laws, Canada has not yet implemented legislation specifically targeting deepfake technology. The legal framework for such tools remains under discussion as policymakers catch up to rapid technological advances.

Everyone is at risk; the hidden risks of remote transactions

The rapid digitization of real estate has created new efficiencies, but also new vulnerabilities. Remote closings, virtual showings, and electronic signatures are now common. Yet each of these advancements, if not carefully secured, introduces openings for fraud.

In many modern transactions, buyers and sellers never meet face-to-face. Identity is verified through emails, video calls, or uploaded documents. This new digital environment, while convenient, allows sophisticated fraudsters to slip through the cracks. A convincing voice message or screen-shared document can bypass the safeguards that once relied on in-person interactions.

The rise of remote work has only compounded these challenges. With more participants conducting business online and under time pressure, the opportunity for impersonation and misinformation has never been greater.

Deepfake-enabled fraud affects every link in the real estate chain. Sellers may be impersonated by criminals attempting to list and sell properties they do not own. Buyers may receive fraudulent emails or calls with fake wiring instructions. Agents can be impersonated to lend legitimacy to a scam. Brokerages face reputational and legal consequences when their brands or platforms are exploited.

While everyone is vulnerable, seniors are particularly at risk. Emerging technologies can feel overwhelming, and the pressure to “keep up” can lead to rushed decisions or misplaced trust. But age aside, the truth is that no one is immune — the scams are simply that good.

These attacks are not random. They are precise, calculated, and increasing in both frequency and sophistication. And when they succeed, the consequences are severe, financially and emotionally.

How buyers, sellers, and agents can protect themselves

Canadians can protect themselves by remaining vigilant and taking several key precautions.

Here are specific, practical strategies that can help homebuyers and sellers stay secure.

Recognize red flags: Be cautious of anyone who refuses to meet in person or avoids verifying their identity through a known and trusted method. Be suspicious of sudden changes to payment instructions or unfamiliar email addresses. Watch for high-pressure tactics, such as urgent requests to act immediately or skip standard steps. Avoid exclusive communication through apps or messaging platforms that are harder to trace. Never send large payments or personal information at the beginning of a transaction.
Verify identities and property ownership: Confirm that any real estate professional you work with is licensed and in good standing with your provincial regulator. For legal professionals, confirm their status with the appropriate law society. Sellers should verify the identity of potential buyers, and buyers should confirm the true ownership of any property under consideration. Land title records are available through provincial land registries and are a small investment for peace of mind.
Be diligent with listings and virtual showings: Fake listings are increasingly common. Confirm listings through official channels like Realtor.ca or the brokerage’s website. Avoid engaging with listings that only appear on classifieds or social media platforms. Do not send deposits before verifying the property and the representative. In a virtual tour, ask for live proof, such as showing the house number or responding to real-time questions, to ensure the property is real and accessible.
Use secure communication channels: Treat all communication (email, text, and calls) with healthy skepticism. Always confirm payment instructions by calling a known, verified number, never the one provided in an email. Use secure digital portals provided by your real estate professional or legal team. Enable two-factor authentication where possible. When using e-signature tools like DocuSign, confirm the sender and navigate to the platform directly instead of clicking email links.
Pause and confirm before sending money or signing documents: Take a moment to independently confirm any instructions you receive, especially those involving financial transfers or contract changes. Independently confirm wiring instructions by calling the known recipient. Ask questions, request clarifications, and involve professionals you trust. Fraudsters rely on urgency. Refuse to be rushed.
Stay informed: Talk to your agent or lawyer about potential fraud at the start of the transaction. Read up on the latest tactics. Encourage open dialogue if something seems unusual. Being aware is the first and best defence.

The role of industry leadership

While individuals can take important steps to protect themselves, the responsibility for fraud prevention must be shared across the industry. This is where we, as leaders in Canadian real estate, must act decisively.

First, we must establish and implement national standards for identity verification and secure fund transfers. These standards should become non-negotiable. They must include universal adoption of secure communication platforms, formalized protocols for confirming payment instructions, and mandatory checkpoints at critical stages in every transaction.

Second, we must engage with lawmakers and technology providers to modernize the legal and technical frameworks that govern real estate. The pace of regulatory change cannot lag behind the pace of AI innovation. We need legislation that defines and punishes AI-powered impersonation. We currently lack legislation specifically addressing deepfake-driven impersonation; while AI fraud is prosecutable under general criminal statutes, more targeted laws are needed to close loopholes and reinforce enforcement. We need tech companies to do their part in building better detection tools. The real estate sector must be at the table during these conversations.

Third, we must launch a bold, national campaign to educate Canadians. Most consumers have no idea these scams are possible, let alone preventable. Awareness is our greatest ally. From open houses to webinars to contracts, we need to make fraud education part of the buying and selling process.

At Coldwell Banker Canada, we believe protecting clients and agents is non-negotiable. We’ve implemented ongoing network training to help agents recognize fraud risks in real-time. We’re investing in consumer education, so buyers and sellers know how to protect themselves. And we’re participating in industry think tanks focused on improving fraud detection and closing security gaps, not just within our network, but across the industry.

Real estate runs on trust. When that trust is broken, the entire system is at risk. Deepfake-enabled fraud is not just a technological threat. It is a reputational one.

But here is the truth: we are not powerless. We can set new standards. We can close the gaps. We can rebuild and reinforce the very trust that makes this business possible.

This is a defining moment for our industry. If we rise to meet it, Canadian real estate will emerge smarter, stronger, and safer.

We are ready. The question is: who else is?