Middle Eastern Real Estate Fraud Grows with Online Listings

Real estate scams have been rising across the Middle East as scammers exploit the trust associated with online listings and the urgency often felt when securing a property. 

With the increasing use of digital platforms for property searches, many users skip essential verification steps, leaving them vulnerable to fraudsters.

Group-IB’s latest analysis, published today, highlights that the region’s median financial loss per scam case is $3,064. Annual losses for financial institutions could reach millions, the firm warned.

According to the new report, scammers frequently target expatriates and those relocating to new cities, as they may be unfamiliar with local processes and more likely to bypass due diligence checks.

How Scammers Operate

Fraudsters typically create fake property listings on popular online platforms. After gaining the victim’s trust, often through messaging apps, they present a fabricated rental contract via a legitimate property registration platform. Payments are then requested, either through an electronic wallet linked to the registration system or a direct transfer to a mule bank account. In both cases, funds are quickly laundered.

Several real estate professionals in the US have reported similar trends. In 2023, 54% encountered at least one seller impersonation attempt, with 77% noting an increase in such fraud cases, emphasizing the global scale of the issue.

Read more on real estate fraud: Nigerian Handed 26-Year Sentence for Real Estate Phishing Scam

Group-IB said its Fraud Protection solution has identified numerous mule networks in the Middle East linked to these scams. Mule accounts facilitate money laundering by receiving stolen funds before quickly dispersing them. Analysts use technical indicators like shared devices, anonymization tools and suspicious IP addresses to detect and block such activities.

How to Stay Protected

To mitigate the rising threat of real estate scams, Group-IB recommends proactive monitoring of mule accounts and collaboration between financial institutions and regulatory platforms. This approach involves cross-analyzing fraud data and sharing intelligence on emerging threats. Key countermeasures include:

• Verifying property ownership through official documents

• Familiarization with standard real estate practices

• Avoiding upfront payments before due diligence checks

• Monitoring traffic patterns and suspicious activity

Real estate scams not only result in financial losses but also pose operational challenges for platforms and institutions, which damages trust and increases compliance pressures. Strengthening fraud detection and public awareness efforts remains critical in safeguarding both organizations and individuals.