Timeshare terror leaves retired couple worth $50,000 in the hole after being scammed

The FBI has issued a stark warning to timeshare owners about a massive telemarketing scam linked to a violent Mexican drug cartel. This scheme targets unsuspecting property owners, resulting in significant financial losses. Here’s what you need to know and how to protect yourself.

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The Dimitruks family’s devastating timeshare fraud experiment

In late 2022, Mr. and Mrs. Dimitrak, a retired Canadian couple, received a phone call about selling their timeshare in Florida. The scammers, who knew the specific details of their timeshare, promised a Mexican buyer willing to pay above market value. The scammers used a complex operation involving a fake New York escrow company, ecurrencyescrow(.)llc. Dimitrak’s family was required to complete forms and submit more than $3,000 for “administrative” and “processing” fees.

For about a year, the scammers made additional financial demands, citing various taxes and fees. The couple even sent $5,000 to pay off the remaining timeshare balance, thinking it was part of the sale. Mr. Dimitrak, a 73-year-old retired long-haul truck driver, revealed in an interview with KrebsOnSecurity that they lost more than $50,000 due to this scam. Even after this huge loss, the scammers continued to contact them, claiming that their money was waiting for them and urging them to pay more.

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Cartel connections to fraud schemes

The FBI has linked these timeshare fraud schemes to the Jalisco New Generation drug cartel in Mexico. According to the July 2024 warning from Federal Bureau of Investigation and Financial Crimes Enforcement NetworkThese frauds are part of the cartel’s efforts to diversify its revenue sources and finance other criminal activities, including drug trafficking.

Since at least 2012, the cartel and other transnational criminal organizations based in Mexico have increasingly targeted U.S. property owners in Mexico, especially seniors who are often more vulnerable to such scams. The proceeds from these fraudulent activities not only support the cartel’s operations, but also contribute to the manufacture and trafficking of dangerous substances such as fentanyl into the United States.

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How do these tricks work?

The Jalisco New Generation Cartel (CJNG) has expanded its criminal activities beyond traditional drug trafficking into sophisticated fraud operations, including timeshare fraud targeting unsuspecting individuals, especially Americans. Here are some of the methods the cartel uses to carry out these scams:

Impersonating legitimate entities: Scammers often pretend to be legitimate real estate agents, escrow companies, or even officials from US government agencies such as the Treasury Department. This tactic is designed to instill a sense of trust and urgency in potential victims, making them more vulnerable to fraud.

Targeting vulnerable populations: The cartel primarily targets elderly Americans who own timeshares in Mexico. These individuals are often contacted with offers to purchase their timeshare at inflated values, but must 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 to suffer significant financial losses.

Use of call centers: CJNG operates illegal call centers where employees, often unaware of the true nature of the cartel, engage in telemarketing schemes. These centers are strategically located in areas with high unemployment rates, providing a pool of workers who may be in desperate need of jobs. Call centers not only facilitate fraud, but also serve as a means for the cartel to exercise 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 different professionals (for example, lawyers or real estate agents) and claiming that they can help sell their time shares 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 who have tried to leave these call centers have faced dire consequences, including murder, which serves as a chilling message to others considering leaving the cartel. This brutal enforcement mechanism not only protects their operations but also instills fear within communities.

Digital infrastructure: CJNG uses a network of fraudulent websites and domains that appear legitimate at first glance. These sites often mimic real escrow companies and real estate companies, making it difficult for victims to discern the authenticity of their interactions. Many of these domains were linked back to a central hub that ran multiple scams simultaneously.

By understanding these operational tactics, you can better appreciate the complexities and risks associated with fraud committed by organized crime groups such as the Jalisco New Generation Cartel. This knowledge is crucial to preventing future victimization.

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Protect yourself from timeshare scams

To avoid becoming a victim of similar scams, it is essential to take proactive steps to protect your financial interests:

1) Verify the identity of the buyer and provide legitimacy: Always confirm the identity of any potential buyer and the validity of their offer. Contact the timeshare company directly to verify any claims made by the buyer.

2) Find any company that contacts you: Do thorough research on any business that contacts you. Look for reviews and complaints and check their credentials through reliable sources.

3) Be wary of upfront fees: Legitimate transactions typically do not require upfront fees for administrative or processing purposes. If a company requests such payments, caution should be exercised.

4) Use secure communication channels: Avoid sharing personal or financial information via unsecured methods such as phone calls or emails. Choose secure communication channels whenever possible.

5) Do not click on links: Avoid clicking on any links or downloading attachments from unwanted emails. Scammers often use these methods 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 install antivirus software on all of your devices. This protection can also alert you to phishing emails and ransomware, keeping your personal information and digital assets safe. Get my picks for the best antivirus protection winners of 2024 for Windows, Mac, Android, and iOS.

6) Consultation with specialists before initiating transactions: Seek advice from a trusted real estate attorney or financial advisor before entering into any transactions. Their experience can help you overcome potential risks.

7) Report suspicious activity to authorities: If you suspect you have been targeted by a timeshare scam, do not hesitate to report it immediately to your local authorities, the FBI 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: Although the advice provided is valuable, the most important step in protecting yourself from these scams is to reduce your online presence. By reducing the amount of personal information available on the web, you make it much more difficult for scammers to target you. There is no service that promises to remove all your data from the Internet. However, having a removal service is great if you want to continuously monitor and automate the process of removing your information from hundreds of sites over a longer period of time. Check out my top picks for data removal services here.

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Key takeaways for Kurt

Here’s the deal. These timeshare scammers are smart, persistent, and backed by some very bad people. But don’t let that scare you into inaction. Remember that knowledge is power. By staying informed and skeptical, you are already one step ahead of these scammers. Trust your gut. If you feel something, it probably is. Don’t be afraid to ask for help or report suspicious activity. Let’s make life harder for these scammers and keep your hard-earned money where it belongs: in your pocket.

What additional steps do you think authorities should take to combat telemarketing scams targeting vulnerable populations? Let us know by writing to us at Cyberguy.com/Contact.

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