It appears that even Mexican cartels are profiting from the most profitable illegal activity of the day: Timeshare frauds. The FBI claims that El Chapo’s former organization, the Sinaloa Cartel, the Gulf Cartel, and the Jalisco New Generation Cartel have all experimented with internet frauds. They seem to specialize in timeshare scams, having defrauded over $300 million from primarily senior citizens in the past five years.
A timeshare is a vacation property that is owned jointly by several individuals. Every year, they make annual time blocks at the property, typically as part of a long-term or even lifetime commitment. “The goal of timeshare scammers is to deplete their targets’ finances, causing severe harm to their relationships, physical, and mental well-being,” stated Assistant Special Agent in Charge Paul Roberts, who oversees the FBI’s Complex Financial Crimes Branch in New York, in a statement.
According to the FBI, the cartels thoroughly investigate their possible targets before forging documents and contacting them using fictitious email addresses. “Throughout the process, the fraudsters combine high-pressure sales techniques with cyber-enabled fraud strategies, like spoofing official documents and email addresses belonging to legitimate entities.”
Cartels Leading the Fraudulent Charge
The Jalisco New Generation Cartel is the main organization involved in timeshare fraud, according to the FBI, but other groups are probably also employing independent call centers to commit the fraud. Roberts continued, “It’s imperative that the FBI take the lead in addressing this threat to American seniors as the cartels further solidify their control over this space.”
The cartels’ engagement in timeshare fraud is a significant departure from their customs. Their shift to digital crimes demonstrates their agility and awareness of the large profits these kinds of endeavors can yield. The cartels use technological and psychological tricks to fool their victims in these well-planned and carried out schemes.
The Impact on Victims
According to the FBI, timeshare fraud goes unreported a lot because victims are either hesitant to come forward or don’t understand they are being defrauded. Falling for a fraud like this is not at all shameful “added Roberts. “The worst thing that people can do is suffer in silence out of shame or fear of judgment.”
Timeshare fraud victims frequently suffer large financial losses, which can completely destroy their retirement accounts and savings. Significant emotional damage also results in tension in relationships, worry, and stress. Because these scams are so complex, victims sometimes don’t realize they are being duped until it’s too late.
Preventative Measures and Recommendations
Roberts says the top signs to watch out for to avoid timeshare scams are never to pay upfront fees and never hand over a power-of-attorney form. Anyone who contacts you claiming to be a government official should never ask you about a timeshare settlement, threaten to arrest you if you don’t pay, or threaten to subpoena you to court outside the United States, Roberts advised.
Recovering money from criminals after it’s lost in an online scam is notoriously difficult. If you are the victim of a financial scam, the Federal Trade Commission recommends reaching out to your bank or whatever credit card or money service you used to try and recover the funds.
The FTC recommends reporting known timeshare scams to its website, the state attorney general where the crime took place, and the Better Business Bureau. You can report timeshare and vacation club scams to the FTC here.
Conclusion
The involvement of Mexican drug cartels in online scams represents a dangerous evolution in their criminal activities. Targeting vulnerable populations, particularly older Americans, for timeshare fraud allows these criminal organizations to rake in substantial profits with minimal risk. Awareness and vigilance are crucial in combating these sophisticated scams. Victims are urged to report incidents and seek support to mitigate the impact of these fraudulent schemes. As the FBI intensifies its efforts to curb this growing threat, public education and preventative measures will be essential in protecting potential victims from falling prey to these devious operations.
