A title company in Florida is about to close a property sale. The final steps are in motion, including a video call to verify the seller’s identity. On the screen, the seller appears, answers all the questions as expected. The transaction, involving a large sum of money, is just about to be completed. Then, a last-minute suspicion shakes things up – the person on the Zoom call isn’t the seller at all. It’s a deepfake – a fake live video generated by AI that perfectly mimics the seller’s face and voice, controlled by a scammer.
This is not science fiction. It’s a new reality. In industries like real estate, where identity verification is critical, AI-powered fraud presents a massive, evolving threat. The very things industry professionals have always relied on to build trust – like recognizing someone’s voice or face – are being undermined by AI technology. What once seemed like reliable methods of verification are now dangerous vulnerabilities in every transaction.
Why the Mortgage Industry is Ground Zero for AI Fraud
The mortgage and title industry is uniquely vulnerable to AI-powered scams. Every closing involves huge amounts of money. A single successful scam can be immensely profitable for a scammer. But it’s not just about the money – it’s also about the high-pressure environment. The closing process involves a network of buyers, sellers, real estate agents, loan officers, title agents and more. This creates numerous points where fraudsters can slip in undetected.
AI can take advantage of this complexity. Imagine an AI-generated email that sounds just like a senior partner communicating a banking issue and urgently requesting a last-minute change to wiring instructions. The pressure to close on time makes people more likely to act without questioning the request, leaving the door wide open for fraud. AI gives scammers the ability to craft messages that are indistinguishable from legitimate ones, exploiting the industry’s most vulnerable moments.
The Voice Clone on Line One
Remember the classic scam where a fraudster impersonates an executive and demands a wire transfer? Now, AI has made this scam even more dangerous. With voice cloning technology, scammers can replicate someone’s voice with terrifying accuracy, using just a small audio clip. This can be taken from a public interview, a podcast, or even a voicemail.
The result? The executive’s voice, speaking directly to an employee, may sound completely authentic. That “familiar” voice you trust is now a vector for attack. It’s a clear reminder that what we once considered personal assets – like our voice – are now part of the scammer’s toolkit.
Perfectly Forged Phishing Emails
For years, phishing emails were easy to spot, thanks to obvious grammar mistakes and awkward phrasing. Those days are gone. Today, AI tools can generate flawless emails, mimicking the exact style and tone of a specific individual. This makes it incredibly difficult to distinguish between legitimate requests and fraudulent ones.
Moreover, scammers are no longer lone hackers; they operate like businesses. They’ll spend money to register domains that closely resemble a real company’s, creating emails that look almost identical to a trusted source. For example, an email from “jane.doe@alpinemar.com” may be blocked, but “jane.doe@alpinnemar.com” will often get through. These targeted, sophisticated attacks require vigilance far beyond just checking for typos.
Fortifying the Digital Gates
Fortunately, there are ways to safeguard against these threats. Email authentication protocols – like SPF, DKIM, and DMARC – can help prevent email spoofing. Think of them like a verified digital letterhead that makes it much harder for scammers to impersonate your domain. While these protocols may sound technical, their job is simple: they ensure that emails sent from your domain are authentic and haven’t been tampered with.
Despite the power of these protocols, many businesses overlook them. Cloud platforms like Microsoft 365 and Google Workspace have robust security features, but they’re not foolproof. Many advanced settings are off by default and require proper configuration to work effectively. Don’t assume your cloud service is enough – make sure you’re actively securing your systems.
Verifying Who’s on the Line
Caller ID spoofing is another common tactic, but there’s a growing solution. Called STIR/SHAKEN, this framework is designed to verify that the number displayed on a phone call is legitimate. It works by digitally “signing” calls, making it harder for fraudsters to fake caller IDs. This technology is helping combat the rise of phone scams, providing more confidence that the call you’re receiving is from the person it claims to be.
From Automatic Obedience to Mandatory Verification
Even the best tech defenses aren’t enough if your people aren’t prepared. The final line of defense is always the human element, and it’s often the weakest link. To strengthen it, companies need to shift their culture from automatic obedience to mandatory verification. Employees must feel empowered to question any suspicious or urgent request for money or sensitive information, regardless of who it appears to come from.
Creating this kind of culture requires leadership from the top. CEOs and senior managers must actively promote and reward verification practices, creating an environment where security is seen as a core responsibility rather than an afterthought.
Training That Actually Sticks: Beyond the Annual PowerPoint
Cybersecurity training can’t be a one-time event. It needs to be ongoing, interactive, and practical. Companies should run simulated phishing exercises and give immediate feedback to employees who fail to catch the test scams. This ensures employees stay vigilant and know exactly what to do when faced with a potential scam. It’s not just about recognizing a phishing email; it’s about knowing how to respond, such as verifying a request for money by calling back on a trusted phone number.
Beyond Defense: Security as a Market Differentiator
Finally, cybersecurity shouldn’t just be a cost center. In today’s world, it’s a competitive advantage. As AI-powered fraud becomes more common, companies with strong, demonstrable security practices will stand out. Mortgage lenders and title companies that can show they’ve invested in robust defenses and a culture of verification will be trusted more by clients. In this climate, a secure business is not just safe – it’s a market differentiator.
Ian A. Schlakman-Holub is chief information officer for Alpine Mar, offering tax, accounting, advisory, compliance and audit services.