Cartel involved in brutal violence and timeshare scams in popular tourist area subject to Treasury sanctions; public warned by authorities against potential risks for Americans
Mexico-based drug cartels have been targeting U.S. owners of timeshares through call centers in Mexico staffed by telemarketers in fluent English. These scams, often involving advance fees and taxes, can result in significant financial losses for unsuspecting victims, particularly older Americans.
Recently, the U.S. Treasury Department has sanctioned a network of individuals and companies linked to timeshare fraud targeting Americans in Puerto Vallarta, Mexico, for hundreds of millions of dollars. The sanctioned entities are associated with the Cartel de Jalisco Nueva Generacion (CJNG), a U.S.-designated foreign terrorist organization.
In a statement, Secretary of the Treasury Janet Yellen warned that the cartels continue to create new ways to generate revenue to fuel their terrorist operations. The Treasury Department has taken a series of actions targeting the diverse revenue streams benefitting the cartels, including fuel theft, human smuggling, extortion, and fraud.
To protect themselves, current U.S.-based timeshare owners and prospective buyers considering Mexico-based timeshares should conduct appropriate due diligence. This includes verifying the reputation and licensing of timeshare companies and real estate agents, being wary of unsolicited offers or pressure tactics, and avoiding doing business with entities sanctioned by the U.S. Treasury Department.
The FBI is also warning timeshare owners about a telemarketing scam tied to a Mexican drug cartel. The agency believes that the vast majority of victims do not report the scam due to embarrassment, among other reasons.
Understanding that the CJNG cartel uses timeshare fraud as an alternative revenue stream to fund violent operations, consumer vigilance remains essential. Sticking to well-established, reputable timeshare developers and consulting trusted legal and real estate advisors can reduce fraud risk.
In summary, due diligence, avoiding sanctioned companies, and skepticism toward aggressive sales tactics are the primary defenses against timeshare fraud connected to Mexican drug cartels. Reporting suspicious activities or fraud attempts to U.S. law enforcement and consumer protection agencies is also crucial in the fight against these scams.
- The FBI has issued a warning about a telemarketing scam connected to a Mexican drug cartel, stressing that consumer vigilance is essential in the fight against these scams.
- The U.S. Treasury Department has imposed sanctions on a network involved in timeshare fraud connected to the Cartel de Jalisco Nueva Generacion (CJNG), highlighting that cartels are creating new ways to generate revenue for their terrorist operations, including fraud.
- In general news, the banking-and-insurance sector, in conjunction with the finance industry, should be alert to the increasing link between organized crime networks, particularly in the crime-and-justice sector, and the targeting of unsuspecting timeshare owners.
