Timeshare exit fraud is a growing problem, costing victims millions and leaving them emotionally and financially devastated. Scammers target frustrated timeshare owners, especially older adults, with fake promises to help them cancel contracts or resell properties. They use high-pressure tactics, demand upfront payments, and even impersonate government officials or legal professionals.
Key Takeaways:
- Common scams: Fake resale offers, bogus cancellation services, and fraudulent tax demands.
- Who’s targeted: Older Americans, middle-income families, and financially struggling timeshare owners.
- Financial impact: Victims lose thousands, face credit damage, and remain stuck in contracts.
- New tactics: Scammers use AI for fake voices, documents, and websites, making fraud harder to detect.
- How to protect yourself: Avoid upfront fees, verify companies, and contact your resort directly for exit options.
Timeshare fraudsters exploit desperation, but understanding their methods and staying cautious can help you avoid becoming a victim.
Current Trends in Timeshare Exit Fraud
Rising Fraud Cases and Geographic Hotspots
Fraud related to timeshare exits is spreading across the U.S., and the numbers are staggering. From 2019 to 2023, nearly 6,000 victims lost close to $300 million to timeshare resale scams alone, according to FBI data. And that’s just one slice of the problem – there’s no doubt the overall impact is far greater. These figures highlight not only the growing number of cases but also the increasingly sophisticated tactics scammers are using.
In 2024, the BBB ScamTracker flagged timeshare scams as one of the most troubling types of fraud, showing how these schemes are evolving and expanding. With 9.1 million U.S. households owning timeshares as of 2025, scammers have a massive pool of potential targets to exploit.
As these scams spread, fraudsters are sharpening their methods, making it harder than ever for victims to spot the red flags.
New Scam Methods
Today’s scammers are getting more creative – and more dangerous. They’re leveraging advanced technology like AI to manipulate victims more effectively. For example, AI-driven tools can spread misinformation or even fake voices, making fraudulent calls sound eerily convincing.
While old-school methods like cold calls and phishing emails are still in play, scammers are now using more elaborate tactics. They often operate under fake names and titles, sometimes claiming to represent government agencies or other trusted organizations. This false authority helps them build credibility before springing their traps.
Classic scams like bait-and-switch schemes are also evolving. Fraudsters might lure victims with what seems like a legitimate offer, only to upsell them on costly services later. Scare tactics are becoming more common, too – fraudsters create a sense of urgency by threatening legal trouble or financial penalties unless the victim acts immediately.
Another popular ploy is promising quick exits or lucrative resale deals, often requiring high upfront payments. Once the money is handed over, the scammers disappear. To appear legitimate, these operations often feature polished websites and professional-sounding business names.
Social media has become a key hunting ground for these scammers. Platforms allow them to target specific groups with tailored ads or direct messages, making it easier to connect with potential victims. This multi-chann