Timeshare owners warned to watch out for cartel-linked scams

If you own a timeshare and have been searching for a way out, you need to know who may be targeting you.

In February, the US Treasury Department announced sanctions against a timeshare fraud network linked to a major Mexican drug cartel, the Jalisco New Generation Cartel (CJNG).

These aren’t your typical scammers. They’re more organized, more convincing, and in some cases more dangerous than the smooth-talking salesperson who sold you the timeshare in the first place.

Back in 2024, the FBI issued a warning that criminals were already stealing millions from timeshare owners across America, but recent action shows how organized and large-scale these operations have become.

A global problem, not just a US one

Americans represent only about one-third of the world’s timeshare owners. With more than 7 million owners globally, roughly 2.1 million are in the US. The rest are spread across the globe, making this a truly international problem.

Europe has a large share of the market, with the UK alone accounting for nearly 500,000 timeshare-owning households. Germany, France, Spain, and Italy also have significant owner populations. Mexico and Canada contribute substantial numbers to North American ownership, while the Asia-Pacific region—particularly Japan, China, Thailand, and Australia—represents approximately 21% of the global market and is experiencing rapid expansion.

A major UK case shows how widespread and organized these scams can be. In October 2025, 14 people were convicted in connection with the “Sell My Timeshare” operation, a sophisticated fraud that targeted more than 3,500 victims (mostly elderly people), and stole a staggering £28 million (about $35 million USD).

Victims received professional-looking marketing materials and calls from people claiming they could help sell their timeshare. The scammers even used celebrity endorsements in their advertisements to appear legitimate. Like thousands of others, one retiree, Des, paid upfront fees that were supposed to facilitate the sale. The sale never happened and Des lost £14,000 (approximately $18,000 USD).

Where organized crime comes in

In September 2025, federal prosecutors indicted Julio Montero Pinzon, described as a senior CJNG figure, on charges including wire fraud and money laundering tied to alleged timeshare scams targeting Americans.

The US Treasury Department has also said CJNG-linked actors took control of certain timeshare fraud schemes in Puerto Vallarta around 2012, later imposing sanctions on multiple companies and individuals connected to these schemes.

The Justice Department said in its indictment:

“For more than a decade, Julio Montero Pinzon, a senior CJNG cartel leader, allegedly defrauded timeshare owners out of millions of dollars to benefit himself and CJNG.”

The numbers are staggering. These operations have defrauded victims, often elderly Americans, out of millions of dollars. And unlike drug trafficking, timeshare fraud carries far less law enforcement scrutiny while generating steady revenue that helps finance cartel operations.

Think about it from a criminal’s perspective: There are millions of timeshare owners worldwide, with more than one third in the US alone. Many are retirees on fixed incomes watching their maintenance fees climb year after year. They’re desperate to escape contracts they can’t afford and properties they can’t sell.

The secondary market for timeshares is essentially dead. Properties that sold for $20,000 or $30,000 are now worth almost nothing. Some owners literally can’t give them away. Meanwhile, recurring annual maintenance fees of $1,000 to $3,000+ keep coming, creating a perfect storm of financial and emotional desperation. This is exactly what scammers exploit.

The phone rings. The caller sounds professional and has good news: They’ve found a buyer for your timeshare. After years of trying to sell, someone finally wants it, and they’re willing to pay a decent price. Hooray! What a relief…finally!

There’s just one small catch. You need to cover the “closing costs” or ” transfer taxes” upfront, usually between $2,000 and $5,000.

It seems to be a reasonable deal to offload a headache costing you money every year. So you wire the payment. The closing date approaches, then gets postponed. Calls go unreturned. The website disappears.

Your money is gone. There was no buyer. And you still own the timeshare.

Spot the warning signs and protect yourself

According to guidance from the FBI and US Treasury, here’s how these scams typically show up and what to do when they do:

Unsolicited contact. If someone calls you out of the blue claiming to have a buyer, it’s almost certainly a scam. Real buyers don’t cold-call owners with offers. Don’t engage. Look up any company independently if you’re curious—but assume it’s a scam until proven otherwise.
Upfront payment demands. If you’re asked to pay “closing costs” or “transfer fees” before a sale, that’s a major red flag. Don’t send money. Legitimate fees come out of the final sale, not upfront.
Pressure tactics. “The buyer is looking at other properties” or “This offer expires today” are designed to rush you. Slow down. Step away, talk to family or a trusted advisor, and don’t make decisions under pressure.
Requests for wire transfers to Mexico. Or indeed, anywhere. Once money is wired internationally, it’s virtually impossible to recover. Refuse wire transfers. If payment methods feel restrictive or urgent, walk away.
Too-good-to-be-true offers. If someone offers you significantly more than market value for a property you’ve been unable to sell, ask yourself why. Verify everything independently. Check the company through trusted sources like the Better Business Bureau or your state Attorney General.

Stick with licensed real estate agents who handle timeshare resales, starting with the Licensed Timeshare Resale Brokers Association.

How they found you

You might be wondering: How did they even know I own a timeshare?

The answer reveals an uncomfortable truth about your data. Recall my article about your digital footprint and data brokers? Timeshare ownership is often a matter of public record. Data breaches at timeshare companies have exposed customer information. Previous victim lists are bought and sold among criminals or obtained “legally” from data brokers. If you’ve been targeted once, your information is likely available to others for little-to-no cost.

See if your personal data has been exposed.

Your social media presence doesn’t help. That vacation photo you posted from your timeshare resort provides information that scammers can use to make their pitch more convincing.

Authorities have also noted that some CJNG-linked operations maintain sophisticated call centers, with trained staff using detailed scripts and databases of potential victims. These aren’t random calls, but organized operations with significant resources.

What to do if you’ve fallen victim

If you’ve already fallen victim, act immediately:

Stop all communication with the scammers
Contact your bank to see if the transfer can be stopped (unlikely, but worth trying)
File a police report to create an official record
In the US, report it to the FBI at ic3.gov and the FTC at reportfraud.ftc.gov
Place a fraud alert on your credit reports
Consider identity protection if you don’t already have it

Please also be alert for “recovery” scams, where someone contacts you claiming they can get your money back for an upfront fee. This is another scam targeting the same victims.

The connection between some timeshare fraud operations and organized crime groups is not speculation. US authorities, including the Treasury Department, have documented links between certain schemes and the Jalisco New Generation Cartel (CJNG), including sanctions against a network tied to timeshare fraud. Investigators say these operations can generate significant illicit revenue alongside other criminal activities.

The US government is taking action. The Treasury Department has imposed sanctions on multiple individuals and companies, and federal prosecutors have secured indictments against alleged cartel-linked figures. But enforcement alone won’t solve the problem. You still need to protect yourself.

Remember: If someone contacts you unsolicited about your timeshare, claims to have a buyer, and asks for upfront payment, it’s a scam.

Share this information with friends and family who own timeshares, especially older relatives. Awareness can help prevent serious financial loss. Stay skeptical, verify everything, and if an offer sounds too good to be true, it usually is.

We don’t just report on scams—we help detect them