Technology Is the Cause and the Cure for Multifamily Fraud

There is a particular irony in the current state of the multifamily industry. The same technological forces that have made property management faster, more scalable, and more data-driven have also handed bad actors a significantly more powerful set of tools. Generative AI can now produce convincing fake pay stubs, bank statements, and identity documents in minutes. The good news is that technology is also the most promising tool available for combatting these new threats. Understanding how requires a clear-eyed look at how bad actors are operating, how operators are responding, and what the gap between those two things still looks like.

Organizations of all portfolio sizes are encountering fraud at least once every few months, a frequency that reflects just how normalized the problem has become. In MRI Software’s 2026 Multifamily Real Estate Pulse Check survey, which gathered responses from more than 700 multifamily professionals, credit history fraud and fake AI-generated documents were reported as the two most common fraud types. “As AI has advanced, the ability of bad actors has gone with it,” said Carla Hinson, VP of Solution and Innovation at MRI Software. “Over half of the respondents had encountered fraud. That is significant.” What is particularly striking is where that fraud is concentrating...   ...more

RSK: A heads up if you are managing property....fraud is out there.