BaptisteGrandGrand, CC BY-SA 4.0, via Wikimedia Commons, Cropped by Resist the Mainstream

A new report by the New York Times reveals how the second-most powerful cartel in Mexico is branching out into a new enterprise: Operating call centers to scam timeshare owners.

The Jalisco New Generation, which initially focused on drug trafficking, has shifted towards scamming American and Canadian timeshare owners through elaborate fraud schemes.

The cartel operates call centers that contact timeshare owners, offering to purchase their properties for appealing sums. However, these offers are a ruse to extract large payments under the guise of covering various fees. The operation has reportedly amassed hundreds of millions of dollars over the past decade.

Victims are often elderly individuals looking to liquidate assets for their families, making them susceptible to these scams. The losses can significantly exceed the original timeshare investments, with some victims wiring their life savings to Mexico based on false promises

The FBI estimates that American timeshare owners have lost $288 million over five years, though the actual figure is likely higher due to unreported cases.

In a tragic twist, employees of these call centers, who are themselves under the cartel's control, have faced deadly consequences. The remains of eight young workers were found in a ravine near Guadalajara, highlighting the cartel's ruthlessness.

The scam involves demanding payments for supposed government fines and transaction costs, with victims like James and Nicki, a retired couple, losing nearly $900,000. Despite the apparent risks and warnings, many fall prey to these sophisticated frauds, lured by the prospect of freeing up financial assets. The Mexican Central Bank has issued warnings about these scams, but the complexity and cross-border nature of the operations make them difficult to combat.

Law enforcement faces significant challenges in addressing these scams, with limited ability to take action against crimes orchestrated in Mexico. The U.S. Treasury Department has sanctioned individuals and entities involved in timeshare fraud, yet the problem persists, underscoring the need for greater awareness and preventative measures against such predatory schemes.