The Alarming Rise of Timeshare Scams

The FBI is sounding the alarm on a troubling trend that has ensnared countless timeshare owners: a sophisticated telemarketing scam linked to a notorious Mexican drug cartel. This predatory scheme is designed to exploit unsuspecting property owners, leading to devastating financial consequences. Here’s what you need to know to protect yourself from becoming a victim.

The Dimitruk’s Heartbreaking Story

In late 2022, Mr. and Mrs. Dimitruk, a retired Canadian couple, received a call that would change their lives forever. The scammers, armed with specific details about their Florida timeshare, lured the couple with the promise of a Mexican buyer willing to pay well above market value. The fraudsters orchestrated a complex operation involving a fake New York escrow company named ecurrencyescrow[.]llc. Under the guise of legitimacy, they convinced the Dimitruks to complete forms and wire over $3,000 for supposed “administrative” and “processing” fees.

As the months rolled on, the scammers continued to extract more money from the couple, citing various taxes and fees associated with the sale. In a misguided attempt to facilitate the transaction, the Dimitruks even sent an additional $5,000 to settle their timeshare balance. Mr. Dimitruk, a 73-year-old retired long-haul truck driver, revealed that they ultimately lost over $50,000. Even after this staggering loss, the scammers persisted in their contact, falsely claiming their funds were waiting and demanding further payments.

The Cartel Connection

The FBI has traced these timeshare fraud schemes back to the Jalisco New Generation drug cartel (CJNG) in Mexico. According to a July 2024 alert from the FBI and the Financial Crimes Enforcement Network, these scams represent a disturbing shift in the cartel’s operations as they seek to diversify their revenue streams to fund other illegal activities, including drug trafficking.

Since at least 2012, the cartel and other transnational criminal organizations based in Mexico have increasingly targeted American timeshare owners, particularly older adults who may be more vulnerable to such schemes. The financial gains from these fraudulent activities not only support the cartel’s criminal enterprises but also contribute to the illicit manufacturing and trafficking of dangerous drugs like fentanyl into the United States.

Understanding the Scammers’ Tactics

The Jalisco New Generation Cartel has expanded its operations to include sophisticated scams that specifically target unsuspecting Americans. Here are some of the key methods they employ:

Impersonation of Legitimate Entities
Scammers often masquerade as real estate agents, escrow companies, or even officials from U.S. government agencies. This tactic fosters a false sense of security, making potential victims more susceptible to fraud.

Targeting Vulnerable Populations
The cartel primarily focuses on elderly Americans who own timeshares in Mexico. Victims are often lured with inflated offers, but they are required to pay various upfront fees before any transaction can proceed. Once the payments are made, the scammers vanish, leaving victims reeling from financial losses.

Use of Call Centers
The CJNG operates illegal call centers where employees, often unaware of the true nature of their work, engage in telemarketing scams. These centers are typically located in areas with high unemployment, exploiting desperate job seekers. This not only facilitates scams but also allows the cartel to exert control over local communities through intimidation.

Complex Fraud Schemes
Victims may receive calls from multiple scammers posing as different professionals (e.g., lawyers or real estate agents) who claim they can help sell timeshares or recover lost funds. This re-victimization often leads to further financial exploitation.

Violence and Intimidation
The cartel employs extreme measures to maintain control and silence potential whistleblowers. Reports indicate that those attempting to leave the call centers face severe consequences, including threats or violence, instilling fear within communities.

Digital Infrastructure
The CJNG utilizes a network of fraudulent websites that mimic legitimate businesses, making it difficult for victims to discern authenticity. Many of these domains are linked back to a central hub managing multiple scams.

Protecting Yourself from Timeshare Scams

Awareness of these tactics is crucial for preventing future victimization. Here are some proactive steps you can take to safeguard your finances:

1. Verify Buyer’s Identity
Always confirm the identity of any potential buyer and validate their offer by contacting the timeshare company directly.

2. Research Contacting Companies
Thoroughly investigate any company that reaches out to you. Look for reviews and complaints to assess their credibility.

3. Be Cautious with Upfront Fees
Legitimate transactions typically do not require upfront payments for processing. If a company asks for such fees, be suspicious.

4. Use Secure Communication Channels
Avoid sharing personal information over unsecured methods like phone calls or emails. Opt for secure channels whenever possible.

5. Avoid Clicking on Links
Be wary of unsolicited emails with links or attachments. Scammers often use these tactics to steal personal information. Install antivirus software to protect your devices from malware.

6. Consult Professionals
Before engaging in any transactions, seek advice from a real estate attorney or a trusted financial advisor. Their expertise can help you navigate potential pitfalls.

7. Report Suspicious Activity
If you suspect you’ve been targeted by a scam, report it to local authorities or the FBI’s Internet Crime Complaint Center.

8. Invest in Data Removal Services
Minimize your online presence to reduce the risk of being targeted. Consider using data removal services to help manage your personal information online.

Stay Informed and Vigilant

These timeshare scammers are cunning and relentless, but you don’t have to be a victim. Knowledge is your best defense. Trust your instincts—if something feels off, it probably is. Don’t hesitate to seek help or report suspicious activity. Together, we can make it more challenging for these fraudsters and keep your hard-earned money safe.

What additional measures do you think authorities should take to combat telemarketing scams targeting vulnerable populations? Share your thoughts with us.

For more tech tips and security alerts, subscribe to our newsletter for the latest information on protecting yourself online.