Worried you might be falling for a timeshare scam? Or just trying to avoid one altogether?
Scammers target current and former timeshare owners all the time, often with promises that sound too good to be true.
Here are the most common timeshare scams and timeshare exit scams in 2025, and what to do if you’ve already been caught up in one.
(If you know you’re working through a scammy situation and are in need of support, we’ll drop a link to our highest-rated timeshare exit firm here. If not, keep reading!)
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Table of Contents
- 1. Fake resale companies that charge upfront fees
- 2. Timeshare cancellation scams with guaranteed results
- 3. Cold calls or robocalls claiming a buyer is ready
- 4. “Rental income” scam offers
- 5. Fake legal claims timeshare scam
- 6. Cartel-backed scams targeting U.S. timeshare owners in Mexico
- 7. Fake “title transfer” companies
1. Fake resale companies that charge upfront fees
One of the most common and costly timeshare scams involves resale companies that promise to sell your timeshare fast … for a fee.
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 if 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.
2. Timeshare cancellation scams with guaranteed results
Desperate to get out of your timeshare? That’s exactly what some exit companies 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
✅ 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.)
📣 Report it:
Victimized by an exit scam? File a complaint with the FTC and your state attorney general.
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.
🛑 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.
🛑 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.
📣 Report it:
Report it to the FTC, 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.
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 timeshare exit scams pretend they’ll take over your unit by transferring the deed or title out of your name. 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.
Timeshare scammers thrive on pressure, promises, and confusion. Now that you know what to watch for, you’re already one step ahead.
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