Mexican Cartels Targeting Americans in Timeshare Fraud Scams, FBI Warns

Mexican transnational criminal organizations are increasingly targeting American timeshare owners in sophisticated fraud schemes, according to a new report from the Federal Bureau of Investigation (FBI).

These scams have cost victims more than $300 million, primarily affecting older Americans, whom the agency describes as particularly vulnerable to such crimes.

The FBI has observed a rise in these scams, where criminals deceive timeshare owners into parting with large sums of money under false pretenses related to their properties. This type of fraud, often considered a form of elder fraud, has devastating impacts on victims, said Assistant Special Agent in Charge Paul Roberts of the FBI New York’s Complex Financial Crimes Branch.

“Timeshare fraudsters aim to suck their victims dry, with devastating consequences to victims’ financial futures, relationships, and physical and emotional health,” Roberts said.

The FBI has noted that proceeds from these fraud schemes are increasingly being used to fund violent Mexican cartels. The Jalisco New Generation Cartel (CJNG), the Gulf Cartel, and the Sinaloa Cartel have been identified as the primary groups operating these scams, with CJNG being the most active based on complaint reports and financial tracking.

“Timeshare fraud has low overhead costs and minimal reinvestment, needing only a rental of small space, telecom setup, and English-speaking employees with access to resort databases,” Roberts explained. He added that the cartels find timeshare fraud attractive because it poses fewer logistical and legal challenges than drug or weapons trafficking.

The FBI is working with various agencies, including the U.S. Drug Enforcement Agency (DEA) and the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), to detect and prevent these schemes. The agency also collaborates with state and local authorities and private sector partners in the financial industry to address these crimes effectively.

For those who suspect they may be victims of timeshare fraud, the FBI advises filing a complaint with the Internet Crime Complaint Center (IC3) at ic3.gov. Providing detailed information about the scam, including the estimated total amount lost, wire transfer details, bank account numbers, and contact information for the scammers, can improve the chances of recovery.

“The faster a victim reports a fraudulent wire transfer, the more likely it is that something can be done about it,” Roberts said. “The first 12 hours, in particular, are critical.”

Fraudsters often conduct extensive research on their victims, using high-pressure sales tactics and cyber-enabled strategies to deceive them. These schemes are not one-time occurrences; victims can be targeted over several years.