The FBI is issuing a stern warning to timeshare owners about a widespread telemarketing scam linked to a violent Mexican drug cartel. This scheme targets unsuspecting homeowners and causes significant financial losses. Here’s what you need to know and how to protect yourself.
Illustration of a timeshare property (Kurt “CyberGuy” Knutsson)
The Dimitruks’ Devastating Timeshare Scam Experience
In late 2022, Mr. and Mrs. Dimitruk, a retired Canadian couple, received a call to sell their timeshare in Florida. The scammers, aware of the specific details of their timeshare, promised a Mexican buyer willing to pay above market value. The scammers employed a complex process involving a fake New York escrow company, ecurrencyescrow.[.]llc. The Dimitruks were asked to fill out forms and transfer more than $3,000 for “administrative” and “processing” fees.
For almost a year, scammers raised additional financial demands, citing various taxes and fees. The couple even sent $5,000 to pay off the remaining balance of their timeshare, believing it was part of the sales process. Dimitruk, a 73-year-old retired long-haul truck driver, revealed in an interview with KrebsOnSecurity that they lost more than $50,000 in this scam. Even after this substantial loss, scammers continued to contact them, claiming their money was waiting and urging them to make more payments.
Fake Email from New York Escrow Company (KrebsOnSecurity) (Kurt “CyberGuy” Knutsson)
OVERCOME THE SCAMMERS: HOW THE CEO’S APPLE GIFT CARD SCAM ALMOST CAUGHT ME
Cartels’ connections to fraud schemes
The FBI has linked these timeshare fraud schemes to the Jalisco Nueva Generación drug cartel in Mexico. According to a July 2024 warning from The FBI and the Financial Crimes Enforcement NetworkThese scams are part of the cartel’s efforts to diversify its sources of income and finance other criminal activities, including drug trafficking.
Since at least 2012, the cartel and other Mexico-based transnational criminal organizations have increasingly targeted American owners of timeshare properties in Mexico, particularly older adults who are often more vulnerable to these types of scams. . Proceeds from these fraudulent activities not only support the cartel’s operations but also contribute to the manufacturing and trafficking of dangerous substances such as fentanyl into the United States.
8 PHISHING SCAMS TO BE AWARE OF THIS HOLIDAY SEASON
How these scams work
The Jalisco New Generation Cartel (CJNG) has expanded its criminal activities beyond traditional drug trafficking into sophisticated scams, including timeshare fraud targeting unsuspecting people, particularly Americans. These are some of the methods used by the cartel to execute these scams:
Impersonation of legitimate entities: Scammers often pose as legitimate real estate agents, escrow companies, or even officials from U.S. government agencies like the Treasury Department. This tactic is designed to instill a sense of trust and urgency in potential victims, making them more susceptible to fraud.
Aimed at vulnerable populations: The cartel primarily targets elderly Americans who own timeshares in Mexico. These people are often contacted with offers to purchase their timeshares at inflated values, but are required to pay various upfront fees, such as taxes or closing costs, before any transaction can be completed. Once these payments are made, the scammers disappear, leaving victims with significant financial losses.
Use of call centers: The CJNG operates illegal call centers where employees, often unaware of the true nature of the cartel, participate in telemarketing schemes. These centers are strategically located in regions with high unemployment rates, providing a pool of workers who may be desperate for employment. Call centers not only facilitate scams but also serve as a means for the cartel to exert control over local populations through intimidation and violence.
Complex fraud schemes: Scams can involve multiple layers of deception. For example, victims may be contacted multiple times by different scammers posing as various professionals (e.g., lawyers or real estate agents) who claim they can help sell their timeshares or recover lost funds. This revictimization often leads to further financial exploitation.
Violence and intimidation: The cartel uses extreme measures to maintain control over its operations and silence potential whistleblowers. Reports indicate that workers attempting to leave these call centers have faced dire consequences, including murder, serving as a chilling message to others considering leaving cartel employment. This brutal law enforcement mechanism not only protects their operations but also instills fear in communities.
Digital infrastructure: CJNG uses a network of fraudulent websites and domains that appear legitimate at first glance. These websites often imitate real real estate and escrow companies, making it difficult for victims to discern the authenticity of their interactions. Many of these domains have been linked to a central hub that manages multiple fraudulent operations simultaneously.
By understanding these operational tactics, you will better appreciate the complexities and dangers associated with scams perpetrated by organized crime groups such as the Jalisco New Generation Cartel. This knowledge is crucial to potentially prevent future victimization.
Government Warning (US Department of the Treasury, Office of Foreign Assets Control) (Kurt “CyberGuy” Knutsson)
THE AI-POWERED GRANDMA TAKING ON SCAMMERS
Protecting yourself from timeshare scams
To avoid becoming a victim of similar scams, it is essential to take proactive measures to safeguard your financial interests:
1) Verify the identity of the buyer and the legitimacy of the offer: Always confirm the identity of any potential buyer and the authenticity of your offer. Please contact the timeshare company directly to validate any claims made by the buyer.
2) Investigate any company that contacts you: Do thorough research on any company that approaches you. Look for reviews, complaints, and verify their credentials through trusted sources.
3) Be careful with upfront fees: Legitimate transactions typically do not require upfront fees for administrative or processing purposes. If a company requests such payments, be careful.
4) Use secure communication channels: Avoid sharing personal or financial information through unsecured methods, such as phone calls or emails. Opt for secure communication channels whenever possible.
5) Don’t click on links: Avoid clicking on links or downloading attachments from unsolicited emails. Scammers often use these tactics to steal your personal information. The best way to protect yourself from malicious links that install malware and potentially access your private information is to have antivirus software installed on all of your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe. Get my picks for the best antivirus protection winners of 2024 for your Windows, Mac, Android, and iOS devices.
6) Consult with professionals before making transactions: Please seek the advice of a trusted real estate attorney or financial advisor before engaging in any transaction. Their experience can help you navigate potential obstacles.
7) Report suspicious activity to the authorities: If you suspect that you have been the target of a timeshare scam, do not hesitate to report it immediately to local authorities, the FBI’s Internet Crime Complaint Center at ic3.gov, or the Federal Trade Commission. Reporting can help protect others from falling victim to similar schemes.
8) Invest in personal data removal services: While the advice provided is valuable, the most important step in protecting yourself from these types of scams is to minimize your online presence. By reducing the amount of personal information available on the web, you make it much harder for scammers to target you. No service promises to remove all your data from the Internet. However, having a removal service is great if you want to constantly monitor and automate the process of removing your information from hundreds of sites continuously over a longer period of time. Check out my top picks for data removal services here.
SUBSCRIBE TO KURT’S YOUTUBE CHANNEL FOR QUICK TIP VIDEOS ON HOW TO WORK ALL YOUR TECHNICAL DEVICES
Kurt’s Key Takeaways
Here’s the deal. These timeshare scammers are smart, persistent, and backed by very bad guys. But don’t let that scare you into inaction. Remember, knowledge is power. By staying informed and skeptical, you’ll already be one step ahead of these scammers. Trust your instinct. If something feels wrong, it probably is. And don’t be afraid to ask for help or report suspicious activity. Let’s make life much harder for these scammers and keep your hard-earned money where it belongs: in your pocket.
What additional measures do you think authorities should take to combat telemarketing scams targeting vulnerable populations? Let us know by writing to us at Cyberguy.com/Contact.
For more tech tips and security alerts, sign up for my free CyberGuy Report newsletter by heading to Cyberguy.com/Newsletter.
Ask Kurt a question or tell us what stories you’d like us to cover.
Follow Kurt on his social channels:
Answers to CyberGuy’s most frequently asked questions:
New from Kurt:
Copyright 2024 CyberGuy.com. All rights reserved.
