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The cartel’s latest target? Your retirement
What do Mexican gangs, murder and retirees have in common? They’re all part of one massive vishing operation. That’s right, Mexican drug cartels are targeting older people with timeshares — and walking away with millions.
I’ve covered a lot of sinister scams in my years of tech reporting … this one’s right there with the worst of them.
I wish I were kidding
The Jalisco New Generation cartel’s timeshare scam is simple but sophisticated.
Cartel cronies bribe employees at Mexican resorts for guest information. Then, their accomplices working in call centers pose as sales reps with an “opportunity” for timeshare owners: Sell your property for big bucks.
Once they have you on the hook, they pressure you to pay fees upfront to handle everything from “advertising costs” to “government fines.” It’s all bogus and most victims don’t realize until they’ve wired hundreds of thousands of dollars over the border.
In the past decade, Jalisco New Generation has made almost $300 million off this operation. But that is just the tip of the iceberg. The FBI estimates at least 80% of vishing victims go unreported.
They target people with the most to lose
AKA, older retirees looking to leave more money to their loved ones.
One retired couple drained their life savings and went into debt after a real estate agent contacted them and offered to broker the sale of their Lake Tahoe timeshare to a Mexican businessman.
At first, the scammers requested small fees of a few thousand dollars to handle “cross-border transactions.” But the amounts escalated. Then, the cartel threatened the couple with extradition if they didn’t pay “Mexican authorities” for phony violations.
They even convinced them to invest in a commercial property, sell their home and borrow money from their daughters to make payments. The result: Almost $900,000 went to Mexican bank accounts.
And, you guessed it, they never saw a dime for their investment.
The stakes are life and death
This gang is feared throughout Mexico for its public executions and other brutal killings.
Last year, outside of Guadalajara, authorities found the bodies of eight Mexicans who worked at one of the cartel call centers. When they searched the call center, they found lists of U.S. timeshare membership details and blackboards filled with foreign names.
The Treasury Department has cracked down on a handful of people and dozens of Mexican companies for timeshare fraud, but it’s a game of whack-a-mole. When one company shuts down, another one pops right up.
Because it all happens over the border, American officials can’t do much aside from warn the public of the danger. That means it’s up to you to stay alert and protect your family.
Do your due diligence on anyone looking to buy your property. Don’t wire money to anyone without meeting them in person. Don’t send money to a foreign bank account. And don’t tap into your nest egg for a risky investment. It’s not worth it, trust me.
Tags: advertising, fees, fraud, murder, scam, scams
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