A Growing Risk for Timeshare Owners
According to the FBI, timeshare fraud is on the rise—particularly targeting owners in Mexico and other locations. These scams often involve perpetrators pretending to offer a sale, exit, or rental service for your timeshare, then asking for upfront payments under false pretenses.
The FBI notes that older and affluent owners are disproportionately targeted, often leaving victims emotionally and financially devastated.
How Timeshare Fraud Typically Works
The FBI outlines a three-phase approach used by fraudsters: Federal Bureau of Investigation
Phase 1 – Initial Contact: Scammers reach out by phone or email pretending to be a third-party broker, timeshare expert or travel consultant. They offer to help you exit, rent or invest in your timeshare—but first require payment of “fees,” “taxes,” or other up-front cost.
Phase 2 – Follow-Up Contact: After you’ve paid initial fees, you’ll be approached by someone claiming to be a law-firm representative who says they can recover your money—but only if you pay “legal fees” or sign over power-of-attorney.
Phase 3 – Impersonation of Government Agencies: Scammers claim they work with the U.S. Treasury, Mexican government, or international bodies like INTERPOL. They pressure you for more money, threatening arrest or seizure of your property if you don’t comply.
Recognize the Red Flags
The FBI offers specific warning signs to help you spot timeshare scams: Federal Bureau of Investigation
- Unsolicited calls/emails about your timeshare offering instant money or “buyers waiting.”
- Requests for up-front fees, “taxes” or “escrow” payments before anything happens.
- Asking for power of attorney, notarized documents, or signing contracts via email.
- Claims that a government official or prestigious agency is involved and insisting money must be paid immediately.
- Guarantees of resale or exit success without verifiable credentials or transparency.
If you encounter one or more of these, stop communication, don’t send money, and document what happened.
What To Do If You Suspect Fraud
- Cease payments and stop communication with the party asking for money.
- File a report with the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov. Federal Bureau of Investigation
- Gather evidence: lists of contacts, amounts paid, wire transfers, bank statements, emails, contracts. The FBI advises providing details such as estimated loss, account numbers, business names, and how you were contacted. Federal Bureau of Investigation
- Notify your bank or credit card company if payments were made via card or bank transfer.
- Report to your state attorney general or consumer protection agency, especially if your state has specific laws covering timeshares.
- Consult a reputable timeshare exit expert—someone experienced in legitimate, resort-compliant cancellation or transfer—not a “too good to be true” buyer guarantee.
Protect Your Timeshare and Your Future
Even if your ownership is still valid, you can protect yourself by:
- Vetting any company that contacts you about your timeshare—verifying licensing, BBB reviews, and public complaints.
- Never paying significant upfront fees to “sell”, “rent” or “exit” your timeshare without full transparency and verifiable credentials.
- Keeping all your timeshare documents, fee bills, correspondence, and transfer attempts well documented.
- Considering a exit strategy if your timeshare is unused, costly, or no longer fits your lifestyle—doing so legally and with documented proof.
