#Japan #Tokyo #Real Estate #Fraud Detection #LIFULL HOME'S

LIFULL HOME'S Implements New Fraud Detection System

In a strategic move to enhance the integrity of real estate transactions, LIFULL HOME'S, a subsidiary of LIFULL Co., Ltd., has initiated a groundbreaking fraud detection system specific to the used housing market. This system, which will start functioning in February 2026, detects and automatically removes fraudulent listings known as 'bait properties'. The company is committed to addressing social issues through its business initiatives and improving consumer trust in real estate listings.

This innovative system is an extension of LIFULL HOME'S existing patent-protected 'Maintenance Visualization Tool'. By leveraging knowledge acquired from its rental property sector's successful fraud detection system, the company has tailored the technology to accommodate the unique data characteristics of the used housing market. Within a month of launching, the system has remarkably increased the daily detection of fraudulent listings by five times, showcasing a significant improvement in detection accuracy and system efficiency.

The Rise of Used Housing Demand and Fraud Issues

Amid the current economic climate where housing prices are continually rising, many consumers are turning to used housing as it provides opportunities to find properties with favorable conditions in terms of location and space, often at lower prices compared to new builds. Unlike new homes, which can have multiple identical units available at once, used homes are unique, necessitating quick decisions from potential buyers.

However, a notable issue in Japan's real estate market arises from the delay in reflecting contract progress in advertising. This lag leads to scenarios where properties that are already under offer or in the sales process remain listed, creating a frustrating situation for consumers who encounter listings for homes that are no longer available—commonly referred to as 'bait properties'. A study conducted by LIFULL HOME'S on 500 individuals who explored purchasing used homes revealed that a staggering one in three had encountered bait properties, highlighting a significant obstacle in their home search.

System Implementation and Results

With an operational rollout in February 2026, LIFULL HOME'S has extended its capabilities to the used housing sales sector by integrating the fraud detection system previously utilized for rental properties. This strategic transition aims to assure buyers of the accuracy and availability of listings. Ongoing tuning tailored to the particular data trends of used properties has proven effective; by March 2026, the system's ability to automatically remove fraudulent listings surged by a remarkable fivefold compared to its initial performance.

Moving forward, LIFULL HOME'S plans to not only enhance the detection and removal of bait properties within the used housing market but to also continue improving the freshness and accuracy of property information across all sectors. Their goal is to position themselves as the 'No.1 Portal for Property Freshness' in both rental and sales markets.

LIFULL HOME'S aims to create an environment where consumers can safely explore their property options, fostering a higher level of trust in its offerings.

A Commitment to Quality

Yuko Miyasako, the manager responsible for property information accuracy at LIFULL HOME'S, emphasizes the broader impacts of the presence of bait properties, stating, "The existence of listings that are unavailable for purchase not only wastes our users' time but significantly undermines trust in the information provided. We have implemented an automated fraud detection system for used homes to enable a more reliable property search experience."

Looking ahead, the company remains dedicated to eliminating bait properties and enhancing information accuracy, ultimately creating a reliable environment for customers to select their ideal living spaces.

LIFULL HOME'S is a leading real estate and housing information service platform in Japan, operating under the philosophy of 'Seeing Your Dreams Come to Life'. It aims to assist individuals in realizing their hopes and expanding their possibilities in housing through comprehensive information tailored to their needs.

For more information about LIFULL HOME'S, visit LIFULL HOME'S.