The Timeshare Scam in Mexico

A timeshare scam in Mexico is a fraud, often run from a call center, that targets owners of Mexican resort timeshares with a promise to sell, cancel, or refund the property, then collects upfront fees for taxes or closing costs and delivers nothing. United States authorities have tied much of this activity to organized crime.

How does a timeshare scam in Mexico work?

The Mexico timeshare scam follows a consistent pattern. A caller reaches an owner of a resort timeshare in Mexico, claims a buyer, renter, or refund is already arranged, and then asks for a payment up front: closing costs, transfer taxes, a government fee, or a deposit. Once the owner pays, the promised money never arrives, and the caller often returns with a reason you must pay again.

The Federal Bureau of Investigation describes these operations as call centers in Mexico staffed by English-fluent telemarketers who impersonate United States timeshare brokers, attorneys, or sales representatives. According to the FBI, roughly 6,000 United States victims reported losing close to 300 million dollars to Mexico-based timeshare fraud between 2019 and 2023, with older owners hit hardest. This page covers the Mexico sub-vertical specifically; our general guide to timeshare scams covers the full taxonomy of exit, resale, and recovery fraud.

What is the cartel connection behind the call centers?

The cartel connection is a matter of public record established by United States government action, not a label we attach on our own. On February 19, 2026, the United States Department of the Treasury, Office of Foreign Assets Control, sanctioned a timeshare resort near Puerto Vallarta, Kovay Gardens, along with five Mexican individuals and 17 Mexican companies, identifying the network as linked to the Cartel de Jalisco Nueva Generacion, also called the Jalisco New Generation Cartel or CJNG. Treasury described it as the sixth such action, with more than 90 individuals and entities designated to date over CJNG-linked timeshare fraud.

The Department of Justice has also charged individuals directly. In an indictment unsealed in September 2025, federal prosecutors charged Julio Cesar Montero Pinzon, identified as a senior CJNG member, and Griselda Margarita Arredondo Pinzon, with conspiracy to commit wire fraud and money laundering tied to a timeshare fraud scheme run from call centers in Mexico; Montero Pinzon was also charged with providing material support to a foreign terrorist organization. These are charges and designations on the public record. Reporting them is the point: we name only the agency, the date, and the action, not a conclusion of our own about anyone awaiting trial.

The broader enforcement record is large. The FTC, state attorneys general, and Treasury have pursued a $140 million court judgment in April 2026 against a primary operator of a timeshare exit scam.

How does the we-found-a-buyer resale scam work?

The Cancun and Puerto Vallarta resale scam usually opens with a call you did not expect, claiming a buyer or renter is already lined up for your Mexican timeshare. To close, you are asked to send upfront closing costs, transfer taxes, or government fees, often by wire to a Mexican account. Once you pay, the buyer never appears, and a second caller may later pose as an official who can recover your loss for one more fee. Real brokers are paid out of the sale, not before it. Resale prices are low to begin with, which is exactly why a promise of a quick, high-priced sale is a warning, not an opportunity. Our guide on how to sell a timeshare explains how a legitimate resale actually pays out.

How can you tell a real offer from a fraud?

A short list of signs separates a legitimate transaction from a Mexico timeshare scam. Treat any one of them as a reason to stop and verify:

• An upfront fee. Any demand for taxes, closing costs, or a deposit before money reaches you is the single clearest warning sign, the one the FTC and FBI stress most.
• An unsolicited call. A buyer or renter who cold-calls you, or an attorney or official you never contacted, is the opening move of the script.
• A wire to Mexico. Pressure to pay by wire transfer, gift card, or cryptocurrency, methods that are hard to reverse, is a hallmark of this fraud.
• Urgency and secrecy. A demand to decide now, or to keep the deal quiet, exists to stop you from checking.

Before you pay anyone who claims to handle United States-side legal or exit work, confirm they are who they say they are. Our guide to vetting timeshare exit companies walks through how to check a company before you hand over money.

What should you do if you have already paid?

Move quickly, because some payments can still be stopped. Call your bank or card issuer immediately to ask about a chargeback or a wire recall; a recently sent wire is sometimes recoverable. Save every record: the phone numbers, emails, names, account details, and amounts. Do not send a further payment to anyone promising to release your money or recover your loss, because the recovery call is frequently the same operation coming back for more. Then file your reports, which is what builds the cases regulators use to shut these networks down.

Where do you report a Mexico timeshare scam?

Report to more than one agency, on both sides of the border:

• FTC. File with the United States Federal Trade Commission at ReportFraud.ftc.gov, or call 1-877-FTC-HELP. The FTC tracks these patterns and warns that an upfront fee is the defining sign of the scam.
• FBI IC3. Report online or cross-border fraud to the FBI Internet Crime Complaint Center at ic3.gov. The FBI has identified Mexico-based call centers, many tied to CJNG, as a primary source of timeshare fraud against United States owners.
• Your state attorney general. File a complaint with the attorney general in your state, which can pursue companies operating where you live.
• Profeco and Condusef in Mexico. Because the property and often the operators are in Mexico, you can also complain to Profeco (the consumer-protection agency) and, for financial-service disputes, Condusef.

A joint notice issued in 2024 by Treasury's Financial Crimes Enforcement Network (FinCEN), OFAC, and the FBI directed banks to watch for the wire patterns these scams use, which is why a wire to a newly formed Mexican company should raise questions on the bank's side as well as yours. Our step-by-step guide on how to report a timeshare scam covers what to gather and where to file.

Sources

U.S. Department of the Treasury, Office of Foreign Assets Control, sanctions on a CJNG-linked timeshare resort and network near Puerto Vallarta (Kovay Gardens, five individuals, 17 companies), February 19, 2026 (home.treasury.gov). U.S. Department of Justice, indictment of Julio Cesar Montero Pinzon and Griselda Margarita Arredondo Pinzon on wire fraud, money laundering, and material-support charges tied to a Mexico timeshare fraud scheme, September 2025 (justice.gov). U.S. Federal Bureau of Investigation, public warning and victim guidance on Mexico-based timeshare fraud and cartel call centers, reporting roughly 6,000 victims and nearly 300 million dollars in losses (2019 to 2023) (fbi.gov, ic3.gov). Financial Crimes Enforcement Network, OFAC, and FBI, Joint Notice on Timeshare Fraud Associated with Mexico-Based Transnational Criminal Organizations (FIN-2024-NTC2), July 16, 2024 (fincen.gov). U.S. Federal Trade Commission, consumer guidance and fraud reporting on timeshare scams (consumer.ftc.gov, ReportFraud.ftc.gov), reviewed June 2026. Last reviewed: June 2026.