SECURITY NEWS
Threat actors take advantage of real estate boom in Middle East finds Group-IB
Group-IB , a creator of cybersecurity technologies to investigate , prevent , and fight digital crime , has released a new report exposing the rising of real estate scams in the Middle East . Cybercriminals are exploiting online platforms to deceive victims – often expatriates and individuals relocating to new cities with an urgency to secure a home – 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 becoming a growing concern in the Middle East , with fraudsters taking advantage of both the increasing reliance on digital platforms and the urgency of individuals securing a home .
Group-IB works alongside local authorities and institutions to enhance digital security , leveraging their expertise in fraud prevention and cybersecurity to combat online deceptive practices .
The fraud process begins when a scammer copies an existing property listing and republishes it under their name . Victims are lured in by below-market rental rates and engage with the fraudster via messaging apps like WhatsApp . To establish credibility , the fraudster sends additional photos , often sourced from the original advertisement , and issues a fake rental contract using a legitimate real estate registration platform . Fraudsters then instruct the victim to 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 , using keywords related to urgent housing needs , expatriate relocation , or belowmarket rent offers . Scammers rely on highranking search results and well-known rental listing platforms to lure victims in .
Based on geohash data uncovered by the report , the scammers seem to originate from different countries , sometimes using VPNs or GPS spoofing programmes to mask their location .
Real estate scams have severe consequences , affecting both financial institutions and individual victims . These schemes exploit trust and psychological manipulation , to significant financial losses that are impossible to recover and potential identity theft as fraudsters often collect sensitive personal data during these transactions .
The report provided recommendations on safeguarding against real estate fraud , emphasising the importance of verifying property ownership through official documents , understanding local real estate
According to the report , the median financial loss per case in the Middle East is approximately $ 3,064 . procedures , and visiting the property in person before making any payments . It also cautioned against pressure tactics that demand immediate payments and stressed the need for thorough research before committing to any transaction . How the scam works : Group-IB ’ s Fraud Protection analysts have identified a structured fraud workflow that involves the following key components .
• Victim – An individual searching for rental properties , unknowingly targeted by scammers .
• Fraudster – A scammer who creates fake property listings and persuades victims to transfer money .
• Ad Platform – A popular online marketplace where fraudulent listings are posted .
• Rental Registration Platform – A legitimate government system exploited to create fake rental agreements .
• Mule Bank Account – A fraudulent account used to receive and launder stolen funds .
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