The U.S. Treasury Department and FBI have both sent out bulletins warning of a widespread timeshare scam being perpetrated by the Jalisco New Generation Cartel (CJNG). The cartel, based in the Mexican state of Jalisco, has scammed timeshare owners out of $288 million, according to the FBI.
The scheme, while widespread, is "relatively simple," The New York Times said. CJNG members "posing as sales representatives call up timeshare owners, offering to buy their investments back for generous sums." They then "demand upfront fees for anything from listing advertisements to paying government fines," said the Times. This often leads to victims wiring "large amounts of money to Mexico, sometimes as much as hundreds of thousands of dollars." By the time the victims realize what has happened, the scammers have vanished.
The cartel "hires call center workers who speak perfect English and teaches them to lure unsuspecting Americans into believing they are steps away from freeing themselves from their timeshares," USA Today said.
The U.S. has tried to get ahead of the game by warning timeshare owners about the scam. The Treasury Department's Office of Foreign Assets Control (OFAC), which the scammers often try to impersonate to demand timeshare funds, released a document noting that Americans, or anyone who owns a timeshare in Mexico, should neither "share any personal or confidential information, such as account information, with nor make any payments to any person purporting to represent OFAC." It also encouraged potential victims to report any scams to the Treasury Department. |