13 Jun Understanding the Modus Operandi of Timeshare Scams in Mexico
In recent years, increasingly sophisticated fraudulent schemes have emerged targeting timeshare owners, particularly foreign nationals with vacation properties or memberships in Mexico. These operations often appear professional and well-coordinated, involving forged documentation, impersonation of officials, and high-pressure tactics designed to manipulate victims.
In light of the rising number of cases reported across jurisdictions, we have prepared this global client alert to outline the typical modus operandi of these schemes. Understanding their structure and tactics is critical for identifying red flags early and responding with appropriate legal action. The following summary is intended as a practical tool to assist both clients and legal professionals in identifying and navigating these threats effectively.
How these scams typically work
1. Unsolicited offer or contact with a “lucrative” offer.
The scheme often begins with an unexpected phone call or email from someone posing as a real estate broker, rental agent, or buyer representative. They offer to purchase or lease the victim´s timeshare at an above-market price, claiming that a substantial amount has already been deposited in a Mexican bank account in favor of the owner to generate a sense of urgency and credibility.
2. Forged legal documents and government forms.
Once engagement is established, the scammers provide seemingly legitimate documents—contracts, wire instructions, government forms, and bank letters. These often include unauthorized use of logos and seals from institutions such as SAT (Mexico’s tax authority), CNBV (the financial regulatory agency), or major commercial banks to build false legitimacy.
3. Advance payments disguised as “Legal Requirements”.
Before any funds are “released,” the victim is asked to cover various fees, which may include:
- Taxes (e.g., Mexican income tax – ISR, or value-added tax – VAT).
- Fiduciary fees, insurance premiums, or transaction bonds.
- Legal or notarial processing costs.
- "Government approvals" that may effectively be disguised bribes.
Scammers often claim that the funds are being held in escrow or frozen until these amounts are paid, luring the victim into a pattern of escalating payments.
4. Escalating demands and false justifications.
After one payment is made, new fees quickly emerge: international transfer costs, anti-money laundering verifications, or “investigations” requiring insurance bonds. The closing is repeatedly postponed with increasingly urgent justifications. These are designed to sustain the illusion of progress while extracting additional funds.
5. Impersonation of authorities.
If a victim expresses doubt, scammers may impersonate Mexican or U.S. government officials, bank officers, or notaries, via emails, phone calls, or forged documents, asserting that failure to pay will result in asset freezes, tax penalties, or legal consequences.
6. No transaction, no payout, only losses.
Ultimately, no sale or rental ever materializes. The “buyer” or “lessee” never existed, and the victim is left with substantial financial losses. In many cases, communication ceases entirely once the scammers have extracted all the money they can.
How Cuesta Campos can help
At Cuesta Campos, we have advised numerous international clients in detecting, preventing, and responding to fraudulent real estate schemes. Our multidisciplinary team is equipped to:
- Review and verify documentation and wire instructions.
- Liaise with Mexican financial and governmental institutions.
- Provide legal strategies to mitigate future exposure.
If you or your clients have received unsolicited offers related to Mexican property or memberships, we strongly recommend not release funds and seek legal counsel before taking any action. Early legal intervention is often the most effective way to avoid irreversible financial loss. If you or your clients are in the business of buying or developing real estate, or are interested in acquiring land in Mexico, we will be pleased to assist you in all legal requirements. Should you require further information or assistance, please do not hesitate to contact the professionals at Cuesta Campos.
Contacto
Berenice Soto García
bsoto@cuestacampos.com
Héctor Ceballos González
hceballos@cuestacampos.com
THE ABOVE IS PROVIDED AS GENERAL INFORMATION PREPARED BY PROFESSIONALS REGARDING THE REFERENCED TOPIC. THIS DOCUMENT ONLY REFERS TO LAWS APPLICABLE IN MEXICO. WHILE EVERY EFFORT HAS BEEN MADE TO PROVIDE ACCURATE INFORMATION, WE DO NOT ASSUME ANY RESPONSIBILITY FOR ERRORS OR OMISSIONS. THIS DOCUMENT DOES NOT CONSTITUTE LEGAL, ACCOUNTING, OR PROFESSIONAL ADVICE OF ANY KIND.