Timeshare Scams: How to Avoid Exit Frauds
How to avoid timeshare scams and exit fraud in 2026
The best way to avoid scams is to know what to look out for. Timeshares can be good investments, but as with any asset, there is a certain risk that comes along. The problem with timeshares is that there is a certain reputation to them, as there is a lack of transparency.
The timeshare industry has been plagued by the rise of scammers not only on the ownership side, but also targeting those who want to exit their timeshares. So, how do you avoid them? What should you look out for and what to do if they contact you? Keep reading to find out.
Are timeshares scams?
The short answer is no. Timeshares are not scams, but timeshares have been the subject for many scammers. The timeshare industry is legit, but you need to know what to look out for. According to the FBI, there has been a rise in timeshare scams, which disproportionally target wealthy older Americans who might be less tech-savvy.
Why people think timeshares are scams
Timeshares can sound too good to be true: you just pay for a fraction of the ownership of a property and then have scheduled vacations for a certain amount of time. Not only that, but there are a lot of timeshares in the country where people are travelling to someplace completely new and have never seen the property, especially if it’s real estate.
That’s even before considering that some people buy timeshares in other countries, with Mexico in particular being a popular destination. The problem is that scammers know about this, and there has been an alarm sounded by authorities about even the cartels running specifically timeshare scams.
So, no matter where in the particular timeshare process you are, knowing what to look out for is essential to ensure your financial protection.
What is timeshare fraud?
Timeshare fraud is the name for the type of scam where fraudsters con timeshare owners to send them money under false pretenses regarding their timeshare, as the FBI defines it. It can be at any point of the process, with scammers selling property that isn’t there, claiming that owners need to pay fees on their property, or timeshare exit scams.
What are the government recommendations?
To avoid falling into these scams, the FBI has issued the following recommendations:
- Do not answer unsolicited calls from unknown numbers.
- Stop communicating with someone if they request cash upfront to deal with your timeshare.
- Don’t sign, notarize, or send any power-of-attorney via email.
The problem with timeshare fraud is that getting your money back is impossible, as any time the money is sent to the fraudsters, it’s almost immediately moved into another account. Besides, a lot of the time, people fall for scams from outside the country, with the most popular destination currently being Mexico, so the USA government can’t do anything about it.
Having these three tips in mind will help you avoid malicious actors from taking advantage of you. Know that these are not an industry standard, and so you should be wary of any communication that aims to get money from you, especially if you can’t find any paper trail or digital footprint vouching for their services.
Common scams against timeshare owners
There are different types of scams that target timeshare owners, such as:
- Timeshare ownership scams: It’s a scam where there is no timeshare or property. Owners are just paying to get a property
- Timeshare exit scam: It’s a scam promising cancellation, a sale, tax money back, or something along the same lines.
- Timeshare resale scam: This is a type of exit scam where fraudsters contact the owner saying that a buyer is interested in the timeshare.
How to avoid timeshare fraud?
Do not make any rushed decisions, instead tell the company that you will contact them later and research the company. A good place to start is the Better Business Bureau. Look for the timeshare exit company’s profile and accreditation, and then read their reviews before continuing any communication with them.
The main giveaway that the company you’re talking to is trying to scam you is clear: they ask for cash up front and use high-pressure sales tactics to force you to sign.
- Initial contact by scammers.
- Reapproach as law firm employees.
- Impersonation of US and Mexico Government officials.
According to their studies, fraudsters tend to contact victims through phone or email, pretending to be third-party brokers, sales or exit representatives in the industry. They either claim that they can help exit, rent or invest the share certificates of your timeshare, and they always ask for taxes or fees payment.
The second part of the scam usually involves the fraudster posing as law firm employees who are trying to get the victim’s money back. Except that to get it back, they ask for more money, usually using the excuse of “court” or “legal” fees for their law firm.
The third and final part of the scam is usually the scammers pretending to be government officials who want to help victims finally recoup their money, or ask for more money to ensure that the original pay wasn’t fraudulent.
This tracks according to a first-hand experience published by Timeshare Specialists, where a 71 year old lady found herself and her husband being scammed of over $29,000 in the span of a couple of months. They thought they were getting out of their timeshare, and instead, found themselves losing their retirement and mortgage savings through bank transfers.
How do scammers target timeshare owners?
The AARD (American Association for Resort Development) has sounded the alarm for timeshare owners being targeted through real estate records, which are public. Not only that, but the FTC says that a big problem is social media, as people post their shares in hopes of selling them.
In general, a big target for scammers are senior citizens, since the internet has become a hotbed for scammers in other types of scams, such as internet shopping, romance scams, or even investment fraud. Being on the lookout and never believing offers that are “too good to be true” is essential for internet safety.
What are timeshare exit scams?
There are several types of exit scams, such as
- Charging for an exit service you can make yourself
- Charging but not cancelling your contract
- Resale scams
Timeshare exit scams are one of the most popular types of scams, as they know that owners want an out or they offer a “too good to be true” scam.
A lot of timeshare owners find themselves stuck as the fees continue to rise, finding themselves paying too much for something they use less and less, so wanting an out is normal.
The best way to ensure that you’re protected against timeshare exit scams is to have an exit team that you can trust. At Serenity 1, we have different exit strategies to get you financial relief and full cancellation of your contract.
- Judicial Based Cancellation: for complex cases and clients who are seeking legal cancellation strategy.
- ABS Recovery Program: A tax-aligned recovery program for contract release through fast, non-litigation methods.
How to sell a timeshare without getting scammed?
The best way to avoid scams is having a timeshare resale team and patience. Just as timeshare ownership isn’t for everyone, it can take a while for professionals to even find a buyer. Having somebody to advocate for you, who knows all the ins and outs of the industry and legalities, key to your safety of mind.
FAQ: Timeshare scams and exit fraud
Are timeshares scams or just bad investments?
Timeshares are neither scams nor bad investments, but a timeshare can become a bad investment if not properly thought out. Vacation ownership can last a lifetime, so considering thoroughly is important as maintenance fees and other hidden costs can add up over the years.
What is the biggest red flag of a timeshare exit scam?
The biggest red flag is asking for money upfront and pressuring you to sign for a service. Real timeshare exit companies will help you at every step of the way, carefully analyzing options and presenting different procedures to match your needs. Exiting a timeshare is not a hard-sales conversation, it’s a cold headed decision.
Can I legally cancel my timeshare without paying an exit company?
Yes, you can legally exit your timeshare by yourself. Either you can go through your contract and look for the requirements, or you can call the timeshare provider company to talk to their exit team. This process is doable, but some legal counsel might be necessary, thus people look for the best timeshare exit companies.
How much do legitimate timeshare exit companies charge?
The average cost of timeshare cancellation services can go upward of $5,000, according to Fidelity Real Estate (as of September 2025), but some companies charge a percentage of the money back, so it depends on the company you get.
Where do I report a timeshare scam?
Contact the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov. Include the following in your complaint:
- The estimated total amount of money you lost
- The details of any wire transfers
- The bank account numbers
- The names of businesses and individuals involved
- All information about how the scammers contacted you
Will I get my money back if I was scammed by a timeshare exit company?
No, you won’t get your money back. As scammers tend to be overseas, their modus operandi includes moving your money around so it’s untraceable.
