The FBI said it has seen a rise in scams targeting timeshare owners. The primary victims are older Americans, particularly wealthy ones looking to recoup some of the money spent on their real estate investment. In the last five years, upwards of 6,000 victims have reported more than $300 million in losses.
Paul Roberts of the FBI said, “Timeshare fraudsters aim to suck their victims dry, with devastating consequences to victims’ financial futures, relationships, and physical and emotional health. “
Roberts said the scams have caught the FBI’s attention because its illicit proceeds are increasingly used to fund violent cartels in Mexico.
Timeshare fraudsters do their homework before they target their potential victims, going as far as creating fake documents and impersonating individuals from trustworthy institutions like banks. They then use high-pressure sales tactics and phony information, such as mimicking legitimate entities’ email addresses and forging official documents, to convince victims that offers regarding their timeshares are real.
Initial contact is generally made by phone or email with the scammer pretending to be a U.S. or Mexican-based third-party time share broker or sales representative. They then urge the owner to exit their timeshare, rent out their property or invest in share certificates. Fraudsters then press victims to pay upfront fees or taxes to secure the deals.