Property is one of the most significant financial investments most South Africans will ever make, yet it is increasingly becoming a target for criminal activity.
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According to Grant Smee, chief executive officer of Only Realty Property Group, rising market activity and more advanced deception methods are driving a sharp increase in property scams.
We unpack how fraudsters are exploiting increased demand, title-deed vulnerabilities, and building hijackings, and what homeowners should watch for in today’s evolving market.
“Property fraud is not new, but it has become sophisticated and far more prevalent,” says Smee. “As market activity increases, so do the opportunities for fraudsters.”
He adds that digitisation has introduced new risks: “Email communication, online listings and electronic payments have made processes faster, but also easier to manipulate. This has opened the door to cybercrime, identity theft and even AI-driven scams that are harder to detect.”
Economic pressure, he says, also plays a role. “Scammers prey on people trying to secure a home quickly or chasing what seems like a good deal.”
Common types of property fraud
Smee says fraud ranges from impersonation to property hijacking – all with potentially devastating financial consequences. He highlights five dominant types of property fraud currently affecting the market:
Title deed fraud: “This is where people transfer ownership of a property without the owner’s knowledge, often using stolen identities or forged documentation,” says Smee. “These cases are particularly alarming as people could lose ownership of their homes entirely.”Recent reports highlight this growing trend. In Khayelitsha, residents raised alarm over alleged housing fraud, with some discovering through municipal records that their homes had been transferred without their consent, while others reported duplicate title deeds.
“Legacy systems, including the old South African ID book, and gaps in verification can lead to such fraud,” says Smee. “The rollout of Smart ID services will help in reducing this risk, but people must remain vigilant.”
Property hijacking: A more extreme form of fraud is property hijacking, where criminals physically occupy or take control of properties, sometimes renting them out or attempting to sell them.In a case reported by the SABC, 17 homes in Bryanston, Johannesburg, came under investigation after being hijacked. In one instance, homeowners returned from holiday to find their property illegally occupied and converted into an informal settlement, complete with illegal utility connections and significant municipal debt.
Times Live reports a similar case where the Johannesburg Property Company opened 16 fraud cases after the alleged expropriation without compensation of city-owned properties by private individuals and companies.
Smee says hijackings often start subtly: “In many cases, it begins with unlawful occupation or fraudulent leases before escalating into full control of the property.”
Email interception: Fraudsters increasingly intercept communication between buyers, agents and attorneys, sending near-identical messages with altered banking details. “Buyers think they’re paying a legitimate account, but the funds are diverted,” says Smee. “This presents a double risk — they lose their money and risk breaching the agreement of sale, becoming liable for damages.”Fake listings: Criminals advertise properties they don’t own, often using real images copied from legitimate listings. “They secure deposits upfront and disappear,” says Smee. “If the deal looks too good to be true, it usually is.”Impersonation of agents or attorneys: Smee says syndicates are also posing as registered agents, sellers or even conveyancers. “They create highly convincing profiles and documentation,” says Smee. “With many transactions happening without face-to-face interaction or viewings, it’s difficult to pick up on this.”Misrepresentation in transactions: Another long-standing issue is misrepresentation. “Buyers or sellers withholding key information can also constitute fraud, particularly where financial loss is incurred. It’s important to be transparent upfront,” he says.Tips to protect yourself
While the risks are real, Smee stresses that there are clear steps buyers, sellers and homeowners can take to protect themselves:
Secure vacant property:“Unoccupied or poorly managed properties are prime targets for hijacking,” he says. “Regular inspections, visible occupation and layered security can reduce the risk. Any unauthorised access or illegal utility connections should be treated as urgent legal matters.”Verify all parties: “Never rely solely on email communication. Confirm agent or conveyancer credentials and banking details directly using verified contact information,” he says. “Also, vet tenants thoroughly, as many hijackings start with deception.”Update documentation: “Ensure title deeds, municipal accounts, leases and compliance certificates are current. Criminals exploit gaps in paperwork to delay eviction or assert false rights.”Check payment instructions:“Any last-minute change in banking details should raise an immediate red flag. Fraudsters create urgency, so take your time and double-check everything before transferring funds.”Smee warns that scammers are everywhere, and constantly evolving: “Property is one of the biggest investments you’ll ever make. Verify every detail, work with trusted professionals and never let your guard down.”
