The New York State Department of State reported a 340% increase in fraudulent listing complaints in 2025, driven largely by AI-generated fake properties. The Department issued a formal consumer alert in November 2025, and as of November 2025, NY enacted a separate rule requiring disclosure of any AI-generated or AI-edited image used in a listing. Here is how to spot the fakes before you lose money.
Since the disclosure rule took effect, the listings still missing labels are almost always the fraudulent ones. In Q1 2026, the FBI's IC3 logged a 22 percent year-over-year rise in rental-scam complaints nationwide, with NYC and Miami leading the pack. The good news: legitimate brokers now disclose AI-staged renderings on every comp set I pull from RLS, so an unlabeled-but-stunning interior shot is itself the red flag.
What Are AI-Generated Fake Listings?
Scammers are now using artificial intelligence to create convincing but completely fake property listings. These can include:
- AI-Generated Photos: Realistic interior and exterior images of properties that don't exist
- Fake Property Descriptions: Compelling copy written by AI that sounds professional
- Phantom Addresses: Listings at real addresses for properties not actually for sale or rent
- Deepfake Video Tours: Virtual tours created entirely by AI
Red Flags to Watch For
Protect yourself by looking for these warning signs:
- Price too good to be true: Significantly below market value for the area
- Pressure to act fast: Urgency to send deposits or sign without viewing
- No in-person showing: Excuses for why you can't tour the property
- Wire transfer requests: Asking for money via wire transfer or cryptocurrency
- Unlicensed agent: Cannot provide valid NYS real estate license information
- Inconsistent photos: Lighting, shadows, or perspectives that don't match
How to Verify Listings
- Check the license: Verify any agent at DOS License Lookup
- Cross-reference: Search the address on multiple platforms (StreetEasy, Zillow, MLS)
- Reverse image search: Check if photos appear elsewhere online
- Demand an in-person tour: Never rent or buy without seeing the property
- Work with a licensed broker: A trusted professional can verify listings for you
Verified Active Listings
Real MLS listings from the REBNY Listing Service
110 Cabrini Boulevard #CH1
Hudson Heights
1891 E 29TH Street
Madison
Listing information provided courtesy of the Real Estate Board of New York's Residential Listing Service (RLS). Information is deemed reliable but not guaranteed. Sale listings verified. ©2026 REBNY. RLS data displayed by Keller Williams NYC.
If You Suspect a Scam
Report suspected fraud to:
- NYS Department of State: dos.ny.gov or (518) 474-4429
- NYC Department of Consumer and Worker Protection: 311 or nyc.gov/consumers
- FBI Internet Crime Complaint Center: ic3.gov
My Commitment to You
Every listing I share is personally verified. I never use AI-generated content to represent properties, and I'm happy to verify any listing you find elsewhere.
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