Dubai, UAE; 11 February 2025: Group-IB, a leading creator of cybersecurity technologies toinvestigate, prevent, and fight digital crime, has released a new report exposing the rising ofreal estate scams in the Middle East. Cybercriminals are exploiting online platforms to deceivevictims –often expatriates and individuals relocating to new cities with an urgency to secure ahome– into paying for fraudulent property listings, resulting in significant financial losses.According to the report, the median financial loss per case in the Middle East is approximately$3,064 with annual losses reaching millions per institution. Real estate scams are becominga growing concern in the Middle East, with fraudsters taking advantage of both the increasingreliance on digital platforms and the urgency of individuals securing a home. Group-IB worksalongside local authorities and institutions to enhance digital security, leveraging theirexpertise in fraud prevention and cybersecurity to combat online deceptive practices.The fraud process begins when a scammer copies an existing property listing and republishesit under their name. Victims are lured in by below-market rental rates and engage with thefraudster via messaging apps like WhatsApp. To establish credibility, the fraudster sendsadditional photos, often sourced from the original advertisement, and issues a fake rentalcontract using a legitimate real estate registration platform. Fraudsters then instruct the victimto transfer funds through electronic wallets or direct bank transfer to a mule account.Fraudsters often target victims based on their online searches for rental properties, usingkeywords related to urgent housing needs, expatriate relocation, or below-market rent offers.Scammers rely on high-ranking search results and well-known rental listing platforms to lurevictims in.Based on geohash data uncovered by the report, the scammers seem to originate fromdifferent countries, sometimes using VPNs or GPS spoofing programmes to mask theirlocation.Real estate scams have severe consequences, affecting both financial institutions andindividual victims. These schemes exploit trust and psychological manipulation, leading tosignificant financial losses that are impossible to recover and potential identity theft asfraudsters often collect sensitive personal data during these transactions.
PRESS RELEASEThe report provided recommendations on safeguarding against real estate fraud, emphasizingthe importance of verifying property ownership through official documents, understanding localreal estate procedures, and visiting the property in person before making any payments. Italso cautioned against pressure tactics that demand immediate payments and stressed theneed for thorough research before committing to any transaction.Additional material:How the Scam works:Group-IB’s Fraud Protection analysts have identified a structured fraud workflow thatinvolves the following key components:• Victim – An individual searching for rental properties, unknowingly targeted byscammers.• Fraudster – A scammer who creates fake property listings and persuades victims totransfer money.• Ad Platform – A popular online marketplace where fraudulent listings are posted.• Rental Registration Platform – A legitimate government system exploited to createfake rental agreements.• Mule Bank Account – A fraudulent account used to receive and launder stolenfunds.Real-life Cases:• Case 1: A victim found a rental listing on a well-known platform and contacted theadvertiser. The scammer sent a lease agreement through a legitimate regulatory platform,making the offer seem credible. After transferring an initial deposit, the victim was asked foradditional payments. When they refused, the scammer vanished.• Case 2: Another victim communicated with a fraudster via WhatsApp, received a contract,and made the payment. Upon attempting to move in, they discovered the actual propertyowner had no knowledge of the deal.-ENDS-ABOUT GROUP-IBEstablished in 2003, Group-IB is a leading creator of cybersecurity technologies to investigate,prevent, and fight digital crime globally. Headquartered in Singapore, and with Digital Crime
PRESS RELEASEResistance Centres in the Middle East and Africa, Europe, Central Asia, and the Asia-Pacific,Group-IB analyses and neutralises regional and country-specific cyber threats via its UnifiedRisk Platform, offering unparalleled defence through its industry-leading Threat Intelligence,Fraud Protection, Digital Risk Protection, Managed Extended Detection and Response (XDR),Business Email Protection, and External Attack Surface Management solutions, catering togovernment, retail, healthcare, gaming, financial sectors, and beyond. Group-IB collaborateswith international law enforcement agencies like INTERPOL, EUROPOL, and AFRIPOL tofortify cybersecurity worldwide, and has been awarded by advisory agencies including Aite-Novarica, Gartner, Forrester, Frost & Sullivan, and KuppingerCole.For more information, visit us at www.group-ib.com or connect with us on LinkedIn, X,Facebook, and Instagram.FOR MEDIA INQUIRIESGroup-IB Public
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Group-IB Releases New Report on Rising RealEstate Scams in the Middle East and How toDetect Them
