UNITED STATES - The Federal Bureau of Investigation (FBI) is sounding the alarm on a different type of online scam that many Mexican cartels are using to defraud the older American population.
According to Business Insider, many Mexican cartels including the Jalisco New Generation Cartel, the Gulf Cartel, and the Sinaloa Cartel have all been running their fair share of online scams, with their scam of choice being timeshare fraud — a scamming business that has brought them over $300 million in the last five years.
A timeshare is a vacation home where many different people share ownership and purchase blocks of time throughout the year. Many timeshares require a long-term or lifetime commitment, making it lucrative for those who are running the timeshares.
Assistant Special Agent in Charge Paul Roberts, head of FBI New York's Complex Financial Crimes Branch, said in a statement, "Timeshare fraudsters aim to suck their victims dry, with devastating consequences to victims' financial futures, relationships, and physical and emotional health." Roberts added, "As the cartels further cement their control of this space, it's especially critical that the FBI take the lead in addressing this threat to American seniors."
According to the FBI, the Jalisco New Generation Cartel is the primary group engaging in timeshare fraud, but that other cartels are likely using independent call centers to carry out the fraud as well. The cartels do not go into this blind, they conduct "extensive research" on potential targets before creating the fake documents and reaching out to them via phony email accounts.
Roberts explained, "Throughout the process, the fraudsters use a combination of high-pressure sales tactics and cyber-enabled fraud strategies, such as mimicking legitimate entities' email addresses and forging official documents, to convince victims that each phase of the scam is legitimate."
Unfortunately, timeshare fraud often goes unreported because victims either don't realize that they are being scammed or once they do realize it, they are too afraid to come forward. Roberts wants people to know that falling victim to timeshare scam is nothing to be ashamed of, adding, "The worst thing that people can do is suffer in silence out of shame or fear of judgment."
Roberts said that the top signs to watch out for so that someone does not fall victim to timeshare scams is to never pay upfront fees and never hand over a power-of-attorney form. He also said that anyone who contacts someone claiming to be a government official, should never ask about a timeshare settlement, threaten to arrest you if you don't pay, or threaten to subpoena you to court outside of the United States.
Unfortunately, recovering money from criminals after it's lost in an online scam is extremely difficult. If you or someone you know is the victim of a financial scam, the Federal Trade Commission (FTC) recommends reaching out to your bank or whatever credit card or money service you used to try and recover those funds.
The FTC also recommends reporting known timeshare scams to its website, the state attorney general where the crime took place, and the Better Business Bureau. Back in April, the New York Post reported on two California retirees who lost nearly $1 million after falling victim to a timeshare scam run by the Jalisco New Generation cartel.
The elaborate scam cost the couple their entire life savings, with them making the last payment back in January and spending $890,000 across several bank accounts in Mexico.
According to Business Insider, many Mexican cartels including the Jalisco New Generation Cartel, the Gulf Cartel, and the Sinaloa Cartel have all been running their fair share of online scams, with their scam of choice being timeshare fraud — a scamming business that has brought them over $300 million in the last five years.
A timeshare is a vacation home where many different people share ownership and purchase blocks of time throughout the year. Many timeshares require a long-term or lifetime commitment, making it lucrative for those who are running the timeshares.
Assistant Special Agent in Charge Paul Roberts, head of FBI New York's Complex Financial Crimes Branch, said in a statement, "Timeshare fraudsters aim to suck their victims dry, with devastating consequences to victims' financial futures, relationships, and physical and emotional health." Roberts added, "As the cartels further cement their control of this space, it's especially critical that the FBI take the lead in addressing this threat to American seniors."
According to the FBI, the Jalisco New Generation Cartel is the primary group engaging in timeshare fraud, but that other cartels are likely using independent call centers to carry out the fraud as well. The cartels do not go into this blind, they conduct "extensive research" on potential targets before creating the fake documents and reaching out to them via phony email accounts.
Roberts explained, "Throughout the process, the fraudsters use a combination of high-pressure sales tactics and cyber-enabled fraud strategies, such as mimicking legitimate entities' email addresses and forging official documents, to convince victims that each phase of the scam is legitimate."
Unfortunately, timeshare fraud often goes unreported because victims either don't realize that they are being scammed or once they do realize it, they are too afraid to come forward. Roberts wants people to know that falling victim to timeshare scam is nothing to be ashamed of, adding, "The worst thing that people can do is suffer in silence out of shame or fear of judgment."
Roberts said that the top signs to watch out for so that someone does not fall victim to timeshare scams is to never pay upfront fees and never hand over a power-of-attorney form. He also said that anyone who contacts someone claiming to be a government official, should never ask about a timeshare settlement, threaten to arrest you if you don't pay, or threaten to subpoena you to court outside of the United States.
Unfortunately, recovering money from criminals after it's lost in an online scam is extremely difficult. If you or someone you know is the victim of a financial scam, the Federal Trade Commission (FTC) recommends reaching out to your bank or whatever credit card or money service you used to try and recover those funds.
The FTC also recommends reporting known timeshare scams to its website, the state attorney general where the crime took place, and the Better Business Bureau. Back in April, the New York Post reported on two California retirees who lost nearly $1 million after falling victim to a timeshare scam run by the Jalisco New Generation cartel.
The elaborate scam cost the couple their entire life savings, with them making the last payment back in January and spending $890,000 across several bank accounts in Mexico.
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