The FBI has issued a warning about a significant increase in scams targeting timeshare owners, with a large portion of these schemes being linked to Mexican drug cartels. These criminals target part-time property owners, particularly older Americans, persuading them to hand over large sums of money under false pretenses related to their timeshare properties. The scammers utilize high-pressure sales tactics, cyber-enabled fraud strategies, and fake documents to convince victims that the scam is legitimate, often impersonating individuals from trustworthy institutions.
These fraudulent schemes have severe consequences, impacting victims’ financial futures, relationships, and physical and emotional well-being, according to Assistant Special Agent in Charge Paul Roberts. Furthermore, the proceeds from these scams are increasingly being used to fund violent activities by cartels in Mexico. The cartels see timeshare fraud as an attractive revenue stream due to its low cost compared to other illegal activities like drug trafficking and weapons sales, and scammers may themselves participate out of fear of becoming victims of the cartels.
While multiple Mexican drug cartels are involved in timeshare fraud, the Jalisco New Generation Cartel has played a prominent role in these schemes, according to the FBI. The bureau is collaborating with the Drug Enforcement Administration and the Treasury Department’s Office of Foreign Assets Control to investigate and combat these cases. Additionally, the American Resort Development Association (ARDA) has noted that fraudulent activities like timeshare exit scams are common, highlighting the importance of consumer education on legitimate ways to exit timeshares.
ARDA President and CEO Jason Gamel emphasized the significance of early and effective consumer education on legitimate timeshare exit options to prevent scams like these from occurring. ARDA has established the Coalition for Responsible Exit as a resource to help timeshare owners exit their properties responsibly and safely if they no longer find it suitable. Gamel advises individuals considering selling their timeshares to avoid engaging with proactive resale offers and always visit ResponsibleExit.com to explore legitimate exit avenues.
In light of the increasing number of timeshare scams linked to Mexican drug cartels, law enforcement agencies and industry organizations are working together to address this issue proactively. The collaboration between the FBI, DEA, Treasury Department, and ARDA aims to investigate fraudulent activities, provide resources for affected timeshare owners, and raise awareness about the risks associated with illegal timeshare exit schemes. By educating consumers on legitimate exit options, the industry hopes to minimize the impact of these scams on vulnerable timeshare owners and prevent proceeds from funding criminal activities by cartels in Mexico.
