ATLANTA — A new report reveals that scammers are using artificial intelligence to create fraudulent apartment applications in Atlanta, affecting up to 50% of applications in some of the city’s most desirable areas.
The fraudulent applications are particularly prevalent in properties managed by Greystar, with locations in Buckhead, Midtown and Downtown Atlanta seeing a significant number of flagged applications.
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Channel 2’s Michael Doudna learned that if these fraudulent applications are not detected, they can result in apartments being occupied by individuals who do not pay rent, leading to costly eviction processes.
“And now with all the social media and the TikTok showing you how to do this, people are basically motivated to try to cheat,” said Marjy Stagmeier, a landlord who has witnessed a rapid increase in fraudulent applications.
Fraudsters are using AI to create sophisticated fake documents, including bank stubs and identities, which are then used to secure apartments they otherwise could not afford.
“Atlanta has been, unfortunately, the national epicenter for the problem,” said Kevin Donnelly, Executive Director of the Real Estate Technology and Transformation Center.
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This has led to a black market industry where fake identities and financial profiles are sold to guarantee access to luxury properties.
“You have no choice but to raise your rents, to unfortunately let staff go, to hold back on maintenance, and to basically cut costs,” Stagmeier said.
In response to the growing issue, many luxury complexes are turning to AI technology firms to help combat these fraudulent applications.
However, this creates an arms race between scammers and landlords, ultimately increasing costs for all parties involved.
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