Many foreigners want to own property in Bali. Some have even built their dream homes there. Even though it seems like a great opportunity, there are still risks in Indonesia’s property market. One of the biggest concerns is property investing scams.
We’ve seen a growing number of scams and fraud cases in Bali’s property community. From fake AI-generated listings to “too-good-to-be-true” marketing, there are many red flags to watch for before making a purchase.
This article will give you all of the information you need to invest in Bali real estate safely. You’ll learn about the common signs of real estate scams and simple ways to avoid them.
Property Scammer Red Flags
How do you know if an investor is scamming you? These are the red flags you should avoid to protect yourself from getting scammed by any fake property investment or real estate agency:
1. Promises That Sound Too Good
Be suspicious if someone promises you an impossibly amazing investment, like a guaranteed crazy high rental income every month or a home at a suspiciously low price. Those kinds of offers are scams trying to trick you.
2. People Rushing You
Legit sellers will give you plenty of time to consider things carefully. But scammers try to pressure you to make a quick decision before you realize their lies. Don’t do it if someone keeps bugging you to sign paperwork or pay a deposit immediately! Just walk away.
3. Unclear Ownership
You must verify who owns the property by checking all the paperwork. Only buy something if the ownership seems clear. Hire a local lawyer or notary to help you with this process.
4. Fake Documents
Scammers might use forged or fake documents to “prove” they own the home. Insist on seeing the original paperwork in person. Then, have your lawyer verify that every document is legitimate before believing anything.
5. Unregistered Agents
Only work with reputable real estate agents. The Indonesian Property Agents Association (AREBI) can help you double-check their paperwork and credentials. Dealing with unlicensed agents is very risky.
Listen to your gut instinct if something seems off about a property “opportunity.”
Protecting yourself from scams is the top priority when investing in Bali real estate as a foreigner.
Types of Property Investing Scams Indonesia (2025)
Here are the most current common investment frauds cases that investors and property owners should watch out for:
1. Phantom Villas and Fake Listings
Scammers nowadays use AI to create fake ads for properties that don’t exist. They post these listings with convincing photos and details to attract renters or buyers. Once payment is made, they vanish without a trace.
2. Abandoned Properties
Fraudsters list abandoned buildings as if they’re for rent or sale, usually at low prices. After collecting a deposit, they disappear, leaving victims stuck with unsafe or unusable properties.
3. Deposit or Prepayment Scams
Scammers pretend to be landlords and offer cheap rentals to lure in buyers or renters. They ask for large upfront payments, then disappear after receiving the money. Victims lose both the property and their cash.
4. Fake Agreements and Documents
Some scammers forge rental or ownership contracts to appear legitimate. These documents can be very convincing, tricking people into thinking they’re signing a real deal. Victims end up with no legal protection or property.
5. False Marketing Scams
These scams include fake property listings and made-up guest reviews. The properties are often misrepresented or don’t exist at all. Scammers also create fake real estate listings that advertise homes and villas at super low prices compared to the normal rates in the area.
6. Email and Message Phishing
Scammers send fake emails or texts that look like they’re from real property platforms or landlords. They include links or requests for personal info. Clicking the links or replying can lead to identity theft or money loss.
7. Phantom Guests and Subletting
Fraudsters pose as tenants using fake IDs and documents to rent properties. After moving in, they stop paying rent, sublet the place illegally, or use it for shady activities. Owners are left with damaged homes and unpaid bills.
8. Fake Construction Companies
Bogus builders target rich investors by offering fake projects. They use fake investment websites, documents, and even set up fake construction sites. Once they get the money, they vanish, leaving no real project behind.
Also Read: The 6 Biggest Do’s and Don’ts When Buying Property in Bali
How to Avoid Investment Scams
Now you know what to look for, it’s also super important to know how to protect yourself from scammers or fake property agency. Follow these tips to avoid getting ripped off:
1. Do Your Homework First
The bad guys love to target unsuspecting overseas buyers with their sneaky scams. So, before looking at villas or houses, you must research and understand the average property values in the areas you want to buy. Look at recent sale prices for similar homes. That way, you’ll know if a listing seems unrealistically cheap and is a scam.
2. Work with an Expert Real Estate Agent.
Don’t try to handle the complicated legal stuff on your own. You need a property agent who understands all the ownership laws and paperwork requirements. They can spot potential scams and ensure the deal is 100% legit before you pay.
3. Keep Your Money Safe
Never wire full payment directly to a seller, even if they insist. Instead, use an escrow service. This is when your money goes to a neutral third party, who holds it safely until the sale finalizes and the property legally transfers to you. Escrow protects you from fraud.
4. Be Careful Online
Don’t get tricked by fake listings on the internet. An online ad with little detail about the property or only generic photos is probably a scam. Scammers often copy pics from legitimate listings to lure victims. Only work with listings from trusted sources that provide all the specific details and information.
The most important thing is to take it slow, double-check everything, and not let anyone rush you into regretful payments. Scammers rely on tricking you with high-pressure tactics. A little patience can save you from losing your life savings!
Real Case of Property Investment Scams in Bali
A real case happened to a princess from Saudi Arabia. In a big scam, Princess Lolowah of Saudi Arabia was tricked by two Indonesians, EMC and EAH (initial).
From April 2011 to September 2018, the princess sent them Rp 505.5 billion (US$37.1 million) to buy land and build two resorts in Bali. However, by 2018, the resorts were not finished, and the land was worth less than promised.
Worse, EMC and EAH still owned the properties, and another company claimed the land. They also tricked her into sending $500,000 for land that wasn’t even for sale. Princess Lolowah lost at least Rp 512 billion. The police charged the scammers with fraud and money laundering.
We’re Here to Help You!
Investing in real estate in another country can be challenging and tricky. That’s why it’s a good idea to work with a reputable real estate agency like Bali Villa Realty by Ilot Property. Our local guide and experts can help you have a legal and profitable investment in Bali.
We’re here to help you find a safe and profitable investment in a great location, check all the legal requirements, and connect you directly with the property owner to ensure everything is legitimate.
Don’t let your Bali property dreams turn into nightmares. Click the link below to book your free call with our Bali experts — get clear steps to invest legally and profitably.
