Timeshare Scam Leaves Retired Couple $50,000 in Debt: An Alarming Warning

The FBI is sounding the alarm over a pervasive telemarketing scam that is robbing unsuspecting timeshare owners of their hard-earned money. This fraudulent scheme has ties to a notorious Mexican drug cartel, raising the stakes for potential victims. Here’s what you need to know to safeguard yourself from becoming the next target.

The Dimitruks’ Harrowing Experience

In late 2022, Mr. and Mrs. Dimitruk, a retired couple from Canada, received a seemingly innocuous phone call regarding the sale of their Florida timeshare. The scammers, armed with intricate knowledge about the couple’s specific property details, lured them with promises of a Mexican buyer willing to pay above market value. Unfortunately, the fraudsters operated through a deceptive New York escrow company, ecurrencyescrow[.]llc, which was entirely fabricated.

The couple was coerced into completing forms and wiring over $3,000 to cover “administrative” and “processing” fees. Over the following months, the scammers continued to exploit the Dimitruks, demanding additional payments for various taxes and fees. In a misguided attempt to facilitate the sale, the couple even sent $5,000 to settle their remaining timeshare balance. Ultimately, Mr. Dimitruk, a 73-year-old former long-haul truck driver, disclosed to KrebsOnSecurity that they lost an astounding $50,000. The scammers’ relentless pursuit didn’t end there; they continued to contact the couple, claiming their funds were waiting and requesting more payments.

The Cartel Connection

The FBI has established a troubling link between these timeshare fraud schemes and the Jalisco New Generation drug cartel (CJNG) in Mexico. A July 2024 warning from the FBI and the Financial Crimes Enforcement Network revealed that these scams are part of the cartel’s strategic move to diversify its revenue streams and fund other criminal enterprises, including drug trafficking.

Since at least 2012, the cartel has increasingly focused on U.S. timeshare owners, particularly targeting older adults who are often more vulnerable to deception. The funds generated from these fraudulent activities not only bolster cartel operations but also contribute to the manufacture and trafficking of dangerous drugs like fentanyl into the United States.

Understanding the Scammers’ Tactics

The CJNG has expanded its criminal reach beyond traditional drug trafficking to include sophisticated scams aimed at unsuspecting individuals, especially Americans. Here are some of the common methods employed by the cartel in executing these scams:

Impersonation of Legitimate Entities: Scammers frequently pose as real estate agents, escrow companies, or officials from U.S. government agencies, creating a false sense of security and urgency that makes victims more susceptible to fraud.

Targeting Vulnerable Populations: The cartel primarily targets elderly Americans who own timeshares in Mexico. Victims are often offered inflated prices for their properties but are required to pay upfront fees, such as taxes or closing costs, before any transaction is finalized. Once these payments are made, the scammers vanish.

Use of Call Centers: The CJNG operates illegal call centers where employees, often unaware of the cartel’s true nature, engage in telemarketing schemes. These centers are situated in regions with high unemployment rates, providing a labor pool that may be desperate for work. The call centers not only facilitate scams but also exert control over local communities through intimidation and violence.

Complex Fraud Schemes: Victims may be contacted multiple times by different scammers posing as various professionals (e.g., lawyers or real estate agents) claiming they can aid in selling timeshares or recovering lost funds. This pattern of re-victimization leads to further financial exploitation.

Violence and Intimidation: The cartel employs extreme measures to maintain control and silence potential whistleblowers. Reports indicate that individuals attempting to leave these call centers have faced severe consequences, including threats to their lives, instilling fear within communities.

Digital Infrastructure: The CJNG uses a network of fraudulent websites that mimic legitimate escrow and real estate firms. These sites can be difficult for victims to identify as scams, often leading to significant financial losses.

Protecting Yourself from Scams

To avoid falling victim to similar fraudulent schemes, it’s essential to take proactive measures to protect your financial interests:

1. Verify the Buyer: Always confirm the identity of potential buyers and the legitimacy of their offers. Reach out to the timeshare company directly to validate any claims made by the buyer.

2. Research Contacting Companies: Conduct thorough research on any business that reaches out to you. Look for reviews, complaints, and verify their credentials through reliable sources.

3. Be Wary of Upfront Fees: Legitimate transactions typically do not require upfront payments for administrative or processing fees. If a company requests such payments, proceed with caution.

4. Use Secure Communication: Avoid sharing personal or financial information over unsecured channels like phone calls or emails. Opt for secure communication methods whenever possible.

5. Avoid Clicking on Links: Stay vigilant and refrain from clicking on links or downloading attachments from unsolicited emails. Scammers often use these tactics to steal personal information. Ensure you have antivirus software installed on all devices to protect against malware.

6. Consult Professionals: Seek advice from a real estate attorney or a trusted financial advisor before engaging in any transactions. Their expertise can help you navigate potential pitfalls.

7. Report Suspicious Activity: If you suspect you’ve been targeted by a timeshare scam, promptly report it to local authorities or the FBI’s Internet Crime Complaint Center. Reporting can help protect others from similar schemes.

8. Consider Data Removal Services: While no service can guarantee complete removal of your online data, investing in a data removal service can help monitor and automate the process of minimizing your personal information on the web.

Stay Informed and Vigilant

These timeshare scammers are crafty, persistent, and backed by dangerous criminal organizations. However, knowledge is your best defense. Stay informed and skeptical, and trust your instincts—if something seems off, it probably is. Don’t hesitate to seek help or report suspicious activity. Together, we can make it harder for scammers to thrive and keep your hard-earned money where it belongs: in your pocket.

What additional steps do you believe authorities should take to combat telemarketing scams targeting vulnerable populations? Share your thoughts with us.

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