It is important to note that timeshare resale scammers have a variety of techniques that they use to target unsuspecting owners who want to sell their timeshares. These tactics often involve unsolicited phone calls to owners, where they falsely claim that a buyer is interested in purchasing their property. In exchange for an upfront fee, they offer to purchase the timeshare and handle the sale, without providing any details on how they plan to do so.
These scams are frequently used by fraudsters to deceive people into giving up their money and personal information. After obtaining this information, scammers typically give their victims the runaround for a few weeks before disappearing altogether.
In Mexico, many timeshare resale companies, or entities posing as them, have become more sophisticated in their tactics for taking advantage of owners. They understand that these companies have a bad reputation within the timeshare industry and have found ways to establish trust with owners. One way they do this is by pretending to be reputable companies with excellent reviews on Better Business Bureau and a large client base with successful sales. Once they have gained the trust of the timeshare owner, they will begin to manipulate them. If you want to avoid falling prey to such scams, here is a guide to help you recognize and avoid timeshare resale scams in Mexico.
The Way in Which Timeshare Resale Scams From Mexico Function.
Dealing with timeshare resale scams is never a pleasant experience, but it becomes even more challenging when they are conducted from a foreign country, introducing a new level of deceit into the mix. These international scammers disregard the rules that typically govern domestic timeshare law and are willing to falsify their identity and the profits you stand to make from your resale.
Below is a summary of the methods they use to deceive you into partnering with them.
They Claim to Be an American Company
Numerous accounts of individuals being contacted by fake timeshare resellers have been reported, and many of these scams are being operated from Mexico. In 2022, a Chicago timeshare owner was approached by a company called Intercontinental Realty, who claimed to be able to sell his Cancun timeshare property for over a million dollars, an unprecedented price for a used timeshare. The owner, hoping to escape his timeshare contract and lured by the high selling price, filled out a series of documents and provided an upfront fee. However, as the owner worked with Intercontinental Realty, they constantly demanded more money, eventually draining $300,000 from his account. The owner hired a private investigator, but the company’s legitimacy was unverified, and all attempts to contact them failed. The private investigator traced the wire transfers to Mexico, confirming the scam’s nature, but no culprit was ever identified, leaving the owner in a financially vulnerable position.
These types of scams can be challenging to identify, as many of these fraudulent resellers create realistic business profiles, phone numbers, and email addresses, with actual individuals posing as employees. Therefore, conducting a quick Google search of a company may not always be sufficient in spotting a scam.
They Steal Identities From Real Companies
Some of these fraudulent operators even resort to using the identities of reputable companies as a façade. The California Bureau of Real Estate reported that scammers have been caught using the names of authorized real estate licensees to facilitate unlawful activities, such as timeshare resales. This is made possible because of the ease of access to information on existing real estate firms and their licensees, including their license numbers, which can be found online.
Impersonating an established business or professional makes it simple for these scammers to appear credible, leading timeshare owners to fall prey to their resale schemes. To avoid timeshare fraud, it’s important to recognize the warning signs. If someone asks you to provide a picture of a check, make a wire transfer, buy gift cards, or make prepaid card payments, they are probably attempting to scam you.
The U.S. Securities and Exchange Commission warns that some of these con artists may even request that you create an account with a specific bank and make an initial deposit into it. This is a clear sign that they are not who they claim to be, and you should cease communication to avoid unknowingly opening an account with a Mexican bank.
They Promise a Huge Selling Price
If you’ve invested a significant amount of money into annual maintenance fees for your timeshare, it’s natural to hope that it’s worth something. When you receive a call claiming that your timeshare is worth double what you paid for it, it’s easy to be lured in. However, these sales pitches are often too good to be true, and are a common tactic used in timeshare resale scams originating from Mexico.
These fraudulent timeshare resale companies in Mexico typically cold call timeshare owners, promising them that there is already a buyer waiting to purchase their property. They inflate the property’s value to make the owner more invested and make their upfront fees seem insignificant compared to the profits they’ll receive from the sale. But this is all a lie.
In reality, it’s highly unlikely that you’ll make any money from a timeshare resale. The timeshare industry primarily thrives by selling new timeshares, and it’s difficult to find a buyer or someone who will take over the timeshare for free. The exorbitant maintenance fees associated with timeshares make it an unattractive option for most people.
If a company makes unrealistic claims about the resale value of your timeshare, it’s a red flag that they are not a legitimate company.
How to Dodge a Mexican Timeshare Scam
Mexico-based timeshare resale scams are notorious for their deceptive tactics. These fraudsters lure in desperate timeshare owners by promising high returns and big profits on their sale, only to leave them with nothing but debt and an unsold property. Despite warning signs, such as fake “American companies” or stolen identities of legitimate businesses, many owners still fall victim to these scams, unknowingly giving away their personal information and thousands of dollars in wire transfers.
To avoid being scammed, it’s important to work with a reputable and legitimate company. At Centerstone Group, we specialize in timeshare exits and can help you achieve a quicker exit for a better value than any other exit company or law firm. Additionally, we are the only timeshare exit team with the ability to get clients out of a Mexican timeshare contract. Whether you’re looking to exit your timeshare property in Mexico, Florida, or anywhere else, contact us to see how we can help.
