The FBI recently issued a warning to timeshare owners in the United States regarding scammers targeting their properties in Mexico. These scammers pose as companies offering to sell or rent the timeshares and have cheated victims out of millions of dollars. The FBI’s Internet Crime Complaint Center received over 600 complaints last year, resulting in losses of $39.6 million from scams related to timeshares in Mexico. Timeshares are vacation properties co-owned by multiple individuals for a specific period, usually a week every year. It can be challenging to resell a stake in a timeshare property; the real value of a timeshare lies in its usefulness as a vacation destination, not as a means of profit.
The scam involves criminals posing as sales representatives for a resale company and using high-pressure tactics to convince timeshare owners to sell or rent their properties. These scammers will ask for an upfront fee for listing and advertising services, but once the payment is made, they become evasive or add additional fees, making it difficult to get hold of them. Scammers will also pose as government entities requesting payments for timeshare sale fees. At times, victims are contacted by fraudulent timeshare recovery companies offering to help them recuperate their losses for a fee.
To avoid these scams, the FBI suggests that timeshare owners should be wary of unsolicited calls, texts, or emails regarding their timeshares, research all entities they come in contact with, and seek the help of a real estate agent or lawyer they trust. The FBI also warns against high-pressure sales tactics and reminds people that if an opportunity seems too good to be true, it often is. If timeshare owners believe they have been the victim of a scam, they can contact their local FBI Field Office.
In addition, the Federal Trade Commission offers tips to avoid resell scammers, such as researching the reseller thoroughly and contacting the state attorney general and local consumer protection agencies in the state where the reseller is located to see if any complaints have been filed against them. The FTC also advises searching online using the reseller’s name and keywords like “complaint” or “scam” to check for any negative reviews or feedback. Other ways to be on the lookout for scammers include inquiring about the fees involved and opting for resellers who only charge fees after the timeshare has been sold. If an upfront fee is necessary, the FTC advises requesting written refund policies. Make sure that the reseller’s agents are licensed to sell real estate in the state where the timeshare is located and only deal with licensed real estate agents and brokers. Timeshare owners are also advised to lower their expectations regarding the resale, particularly if it has been owned for less than five years or is in a less popular area. A licensed timeshare appraisal service can help gauge the value of the timeshare, according to the FTC.