7 Timeshare Scams (and Timeshare Exit Scams) to Watch Out For

Worried you might be falling for a timeshare scam, or trying to avoid the latest timeshare scams altogether? Scammers target both current and former timeshare owners with pitches that look legitimate but are often designed to exploit confusion, urgency, or your desire to get out of a timeshare contract.

Below, we break down the most common timeshare scams, timeshare cancellation scams, and timeshare exit company scams happening in 2025, plus what to do if you’ve already been caught up in one.

(If you’re dealing with pressure, false promises, or an exit company that seems questionable, we’ll link you to a vetted timeshare exit firm below.)

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Table of Contents

1. 1. Fake resale companies that charge upfront fees
2. 2. Cancellation scams with guaranteed results
3. 3. Cold calls or robocalls claiming a buyer is ready
4. 4. “Rental income” scam offers
5. 5. Fake legal claims
6. 6. Cartel-backed scams targeting U.S. timeshare owners in Mexico
7. 7. Fake “title transfer” companies
8. FAQ

1. Fake resale companies that charge upfront fees

Be suspicious of resale companies that promise to sell your timeshare fast … for a fee. This is one of the most common timeshare resale scams, especially targeting owners desperate to get out quickly.

They might say the market is “hot,” claim they already have a buyer lined up, or guarantee they’ll sell your timeshare within weeks. But once you wire them a few hundred (or thousand) dollars, the communication stops—or you’re fed excuse after excuse. In many cases, the sale never existed.

Red flags

• High-pressure sales or “limited time” offers
• Promises of a fast sale or guaranteed returns
• Requests for upfront fees before any service is delivered

What to do

Don’t pay anything upfront. Instead, check whether the reseller is licensed in the state where your timeshare is located. You can also contact your resort directly or use a reputable resale platform.

📣 Report it

If you’ve been scammed, file a complaint at ReportFraud.ftc.gov, and notify your state attorney general.

The biggest tip I would give clients to avoid pretty much any financial-related scam is to never feel pressured to act immediately and absolutely never provide funds to anyone until you have done extensive research to confirm the validity of the group you are speaking with. While some legitimate groups may ask for small upfront payments for their services, that is not the norm and most will just take some portion of any final deal that is worked out.

2. Timeshare cancellation scams with guaranteed results

Desperate to get out of a timeshare? That’s exactly what some timeshare cancellation scams count on. These scams often show up as flashy ads promising to cancel your timeshare “no matter what” or offering a 100% money-back guarantee.

But here’s the catch: many of these companies charge steep upfront fees (sometimes $5,000 or more) and then fail to deliver. Some even tell owners to stop paying maintenance fees, which can lead to foreclosure and damaged credit. In other cases, they simply outsource your case, disappear, or leave you to deal with the fallout.

Red flags

• Promises of guaranteed exits
• Pressure to sign on the spot or attend a group presentation
• Encouragement to stop paying your resort directly

We at Stonegate don’t consider defaulting on a contract to be a legal exit. Just walking away and hoping nothing happens is not the same as being released.
When companies are counting those as successful cancellations, it makes me just a little bit skeptical…These are legally binding contracts, and the consequences can include credit damage and foreclosure.

What to do

Always contact your timeshare company first. Many have official exit programs. If you decide to work with a third party, do your homework. Look for companies with a solid reputation, transparent pricing, and no guarantees they can’t legally back.

The Stonegate Firm is one of several companies with a better reputation for transparency. (See our full list of the best timeshare exit companies and read more about how legitimate timeshare companies work.)

📣 Report it

Victimized by an exit scam? File a complaint with the FTC and your state attorney general.

There are exit companies out there celebrating helping tens of thousands of people, and if that’s true, that’s great. But I’m a little dubious of that, because helping someone doesn’t just mean sending a form letter and calling it a day. We negotiate multiple cancellation offers for a single client and keep pushing until we get the best possible outcome.

3. Cold calls or robocalls claiming a buyer is ready

Getting an unsolicited call from someone who says they’ve got a buyer lined up for your timeshare? That’s a major red flag.

Scammers often pose as real estate agents or brokers and say they have an interested buyer, sometimes even offering more than what you originally paid. But there’s a catch: They’ll ask you to pay a “transfer fee,” “tax,” or “closing cost” up front to secure the deal. Once you send the money, they vanish.

These are among the fastest-growing get-out-of-timeshare scams, often using public records to sound legitimate.

Red flags

• Pressuring you to act fast or risk losing the deal
• Using public records to sound legitimate (“We see you own a unit at ___”)
• Asking for wire transfers or prepaid cards to cover fake fees

What to do

Never pay upfront for a promised sale. Real estate commissions should come after a sale is complete. And always verify licenses through your state’s real estate commission.

📣 Report it

You can report these scams to the FTC, the Better Business Bureau, and the FBI’s Internet Crime Complaint Center (IC3).

4. “Rental income” scam offers

Some scammers dangle the idea of turning your timeshare into passive income. They’ll say they can rent it out for you, often at inflated prices, and promise you an easy payout. All they need is an upfront “marketing fee” or “rental guarantee deposit.”

The catch? There’s no renter or payout. Once you send the money, the scammer disappears. This is one of the most widespread timeshare rental scams, preying on owners who hope to offset maintenance fees with rental income.

Red flags

• Guaranteed income or high rental returns that seem too good to be true
• Pressure to pay fees quickly to “lock in” a renter
• Vague contracts or no contract at all

What to do

If you’re considering renting your timeshare, start by contacting your resort. Some have rental programs or guidelines for working with licensed agents. Always verify the legitimacy of any third-party rental service and never pay upfront without doing your homework.

📣 Report it

Contact your bank or credit card company immediately. Report the scam to the FTC and BBB, and save all communications. You may need them if you file a claim or report.

5. Fake legal claims timeshare scam

Some scammers pretend to be lawyers or say they’re affiliated with a legitimate legal group. Then, they claim to be organizing a lawsuit or legal settlement to help you get out of your timeshare. They may even say you’re already eligible for compensation.

But there’s a catch: You need to pay legal fees or processing charges first.

Once you pay, the updates stop. And no lawsuit ever existed.

Red flags

• Claims of guaranteed legal wins or quick contract cancellations
• Pressure to pay upfront fees before any paperwork
• No verifiable credentials for the supposed “law firm”

What to do

If someone contacts you with a legal offer, verify the firm through your state’s bar association or the National Center for State Courts. Real class-action lawsuits don’t charge you to join.

If you’re working with a law firm, it’s very easy to vet an attorney. Check that they’re licensed with the state bar and in good standing. Not all companies have legal expertise behind them, so people need to be careful and do their due diligence.

📣 Report it

Report it to the FTC, your state attorney general, and the FBI’s Internet Crime Complaint Center. You may also want to consult a real attorney about your options.

6. Cartel-backed scams targeting U.S. timeshare owners in Mexico

It sounds like a movie plot, but it’s real. The U.S. Treasury, FBI, and FinCEN have all issued warnings about cartel-run scams targeting Americans who own timeshares in Mexico. These scams are often run by professional-looking call centers operated by the Jalisco New Generation Cartel (CJNG) and other transnational criminal organizations. Schemes like this are now considered some of the latest timeshare scams identified by federal investigators.

They might pose as real estate agents, brokers, or even government officials offering to help you sell, rent, or cancel your timeshare. Then they ask you to wire money for “taxes,” “transfer fees,” or other bogus charges.

Once they have your money, they vanish.

Red flags

• Unsolicited calls or emails referencing your Mexico timeshare
• Requests for wire transfers to accounts in Mexico
• Pressure to act quickly or risk legal trouble

What to do

Never send money to someone who cold calls you with a “buyer” or “legal solution.” If you think you’ve been contacted by one of these groups, report it immediately to the FBI’s IC3, Office of Foreign Asset Control (OFAC), or ReportFraud.ftc.gov.

📣 Report it

File a complaint with law enforcement and ask your financial institution about recovery options. The U.S. Treasury recommends filing under FinCEN’s “TimeshareMX” program to improve your chances of flagging the transaction in time.

7. Fake “title transfer” companies

Some of the most misleading timeshare exit company scams involve fake “title transfer” services that claim they can remove your name from the deed. They’ll tell you it’s a simple legal process: Just sign here and pay a “transfer fee.”

But in many cases, the title is never legally transferred, or the “exit” happens through foreclosure, which can tank your credit and leave you with unexpected bills.

These companies may also operate under vague names or claim to partner with your resort. Others impersonate escrow services or real estate professionals to gain your trust.

Red flags

• High-pressure tactics to sign over your timeshare rights immediately
• Instructions to stop paying your resort or ignore future communication
• No documentation showing proof of a legitimate title transfer

What to do

Ask for everything in writing, especially proof that the company has legally transferred your title. Verify the company’s real estate license through your state’s licensing board. When in doubt, contact your resort first. Some offer official exit programs that cost far less and don’t damage your credit.

📣 Report it

If the company misled you or caused a foreclosure, report them to the FTC, your state attorney general, and the BBB. You may also want to speak with a consumer protection lawyer to explore your options.

Falling for a timeshare scam can have both immediate and long-term consequences. You may lose money, risk having your bank or credit card information compromised, or, if a scammer convinces you to stop paying fees, hurt your credit.
Losing funds or fixing compromised accounts is stressful, but damaged credit can affect your ability to borrow for years.

Timeshare scammers thrive on pressure, promises, and confusion. Now that you know what to watch for, you’re already one step ahead.

Check out some of our other resources about timeshares:

• The Best Refinance Timeshare Loans
• What Happens to a Timeshare When the Owner Dies?
• The Best Timeshare Loans

FAQ

How can I tell if a timeshare exit company is a scam?

Look for guaranteed results, upfront fees, pressure to sign quickly, or instructions to stop paying your resort. Legitimate exit companies don’t rely on strategic default and are transparent about timelines and outcomes.

What is the most common timeshare scam right now?

According to federal agencies, the fastest-growing schemes involve fake resale offers, high-fee cancellation scams, and cartel-linked operations targeting U.S. owners with Mexico-based timeshares.

Are there legal ways to get out of a timeshare?

Yes. Options include deed-back programs, surrender programs, resale, or negotiating through a licensed attorney. Strategic default is not considered a legal exit and can lead to foreclosure or credit damage.