Timeshare owners are being targeted by organized crime groups running sophisticated fraud operations that have cost Americans close to $300 million since 2019. The FBI, Treasury Department and FinCEN issued a joint warning in 2024 about these scams, which are getting worse.
The Scam Is Run by Drug Cartels
Mexico-based transnational criminal organizations, including the Jalisco New Generation Cartel, operate call centers specifically to defraud U.S. timeshare owners. These aren’t random scammers. They’re part of organized crime revenue streams.
Scammers impersonate legitimate brokers, lawyers or government officials. They contact timeshare owners with offers to sell, rent or exit their contracts. The pitch sounds professional and urgent. Then they ask for advance fees or taxes before the deal closes. Victims send money to fraudulent accounts overseas and never hear from the scammer again.
In 2024 alone, hundreds of complaints reported losses totaling tens of millions of dollars. Many victims get contacted a second time by criminals posing as law firms or recovery agents who claim they can get the money back for another fee. That’s a second-phase scam.
Check Out: 30 Scam Phone Numbers To Block and Area Codes To Avoid
Learn About: 16 Tax and IRS Scams and How To Spot Them
Congress Just Introduced New Protections
In December 2025, Sens. John Curtis (R-Utah) and Adam Schiff (D-Calif.) introduced the Timeshare Transparency Act to address industry problems that leave owners vulnerable. The bill would require timeshare contracts to include clear, itemized disclosure of all costs including maintenance fees and obligations.
It would also mandate written exit options, create a 14-day penalty-free cancellation window after signing and give the Federal Trade Commission authority to enforce these protections. The bill hasn’t passed yet but signals growing concern about deceptive contracts and surprise fees.
How To Protect Yourself
Don’t engage with unsolicited offers. If someone calls, emails or texts about selling, renting or exiting your timeshare, treat it as suspicious. Legitimate brokers rarely cold call.
Never pay upfront fees or taxes before a deal closes. Scammers always ask for advance payments. You shouldn’t send money before contracts are verified by an attorney and held in legitimate escrow.
Verify everything independently. Check with your resort developer or title company before taking any action. Look up complaints with the FTC or Better Business Bureau.
Ignore recovery calls. Criminals return posing as lawyers who can get your money back. Real law enforcement never asks for fees to recover stolen funds.
If you think you’ve been contacted by scammers, report it to the FBI’s Internet Crime Complaint Center at IC3.gov and the FTC’s complaint site.
The Bigger Picture
The combination of organized crime targeting owners and an industry with a history of deceptive practices creates real danger for people who own timeshares. The legislative push for transparency and the law enforcement warnings both point to the same problem: Timeshare owners need better protection.
Until new laws pass, your best defense is skepticism. Don’t respond to unsolicited contact and never send money upfront.
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This article originally appeared on GOBankingRates.com: If You Own a Timeshare, Watch Out For This Scam That’s Costing Americans Millions
