Real estate fraud

Chronicle

2024

Internet scammers in Russia have adapted the Mammoth scheme to deceive those wishing to rent an apartment

In August 2024, it became known that Internet scammers in Russia adapted the Mammoth scheme to deceive landlords who want to rent out their apartments. Experts from Digital Risk Protection F.A.C.C.T. recorded that criminals began to actively use this method to steal money and bank card data, which significantly expanded the scale of rental fraud.

According to RBC, the Mammoth scheme was traditionally used to deceive when buying and delivering goods, but now it has been adapted to work with landlords. Attackers find advertisements for apartments and contact the owners, showing an active interest in renting. During the correspondence, they propose to go to the messenger to continue the dialogue, where they request additional photos of the apartment and clarify the details in order to create the appearance of a real tenant.

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Freepik

At the next stage, fraudsters offer landlords to issue an agreement through a well-known real estate rental service. They claim that they will independently fill out all the necessary documents on the site and transfer the agreed amount, leaving the landlord only to receive money. However, instead of a real service, landlords are sent a link to a phishing site that looks like popular platforms. By entering the details of their bank card on this resource, apartment owners become victims of cybercriminals, who then steal money from their accounts.

Experts at the F.A.C.C.T. have identified at least six scam groups operating under such a scenario, in which more than 4,500 participants are involved. In addition to using phishing sites, scammers began to offer landlords to install malicious APK applications on their phones, allegedly to speed up the apartment rental process. These applications contain viruses that intercept SMS messages, allowing criminals to write off all funds from victims' bank accounts.^[1]

Fraudsters learned to sell housing through State Public services

In mid-July 2024, it became known that cybercriminals in Russia learned to conduct fraudulent real estate transactions through Public services. To do this, attackers use the victim's electronic digital signature, which is taken over in one way or another.

About the new cybercrime scheme, as Gazeta.ru reported, told the lawyer in the field of real estate Irina Nigmatullina. According to her, from the beginning of 2022 in the Russian Federation, any real estate transactions can be carried out remotely through a personal account on Public services. This requires an electronic digital signature, while a personal visit to the notary is not required. Thus, fraudsters, having an electronic signature of the victim, can conduct transactions on behalf of its owner.

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Freepik

Attackers can take possession of the signature using social engineering methods. At the same time, Nigmatullina emphasizes, fraudsters also need to have access to user documents - passport, SNILS and TIN. Their scans are often contained in various databases that are sold on the Internet.

At the same time, the Ministry of Digital Development says that it is impossible to sell real estate through the Public services without the owner's knowledge. The department emphasizes that this portal makes it possible only to submit an application to Rosreestr for registration of ownership. The application itself is signed in the "State Key" application, while the decision to register real estate is made by Rosreestr after a thorough check of the grounds. At the same time, it is impossible to fake an electronic signature in the State Key application or use someone else's signature. And only the owner of an electronic signature on his device can use the "State Sign."

The news that fraudsters can take possession of someone else's apartment on Public services is fake. There is no functionality on the portal that allows you to buy or sell real estate, - says the Telegram channel of the Ministry of Digital Development.[2][3]

2023: Half of fraudulent real estate transactions are made in Russia using Internet technologies

Half of fraudulent real estate transactions are made in Russia using digital technologies. Such data in March 2023, the managing partner of Metrium, Nadezhda Korkka. Read more here.

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