FBI warns Californians of $40 million timeshare scam

Aydian Ahmad
·2 min read

(FOX40.COM) — The Federal Bureau of Investigations Sacramento Office recently released a statement warning Californians of a scam involving timeshares owned in Mexico that have defrauded victims out of nearly $40 million.

According to the FBI, the scam has been around for many years and involves timeshare owners receiving unexpected or uninvited telephone calls or e-mails from criminals posing as sales representatives for a timeshare resale company.

Southern California scam making its way to northern part of state, police say

“The sales representatives often use high-pressure sales tactics to add a sense of urgency to the deal,” the agency said. “Timeshare owners who agree to sell are told they must pay an upfront fee to cover anything from listing and advertising fees to closing costs.”

Once the scammers receive the money, they become evasive by disconnecting their phone numbers, making their websites inaccessible, or they will tell their victims that they must pay additional fees before the “real estate transaction” becomes final.

The FBI said that, in some cases, the scam will go even further when scammers create fake timeshare fraud recovery companies, which will promise assistance to the victims but require an “up-front fee for services.”

“At times, scammers [have said] to be a government entity requesting payments for fees associated with the sale of the timeshare,” the FBI added.

California officials, police warn residents of AI, impersonation scams

The agency provided some tips to help people avoid becoming victims to this scam or similar scams:

  • Be cautious of uninvited telephone calls, texts, or e-mails from anyone interested in your timeshare.

  • Research all entities you are in contact with, contact offices independently to confirm if you are speaking to a representative of their company, and enlist the help of a real estate agent or lawyer you trust.

  • Scammers will use tactics such as pressure and time-sensitive offers.

  • Know that when opportunities appear “too good to be true,” they often are.

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