The FBI is issuing a stark warning to timeshare owners about a widespread telemarketing scam linked to a violent Mexican drug cartel. This scheme targets unsuspecting property owners, leading to significant financial losses. Here’s what you need to know and how to protect yourself.

GET SECURITY ALERTS, EXPERT TIPS – SIGN UP FOR KURT’S NEWSLETTER – THE CYBERGUY REPORT HERE

The Dimitruks’ devastating timeshare scam experience

In late 2022, Mr. and Mrs. Dimitruk, a retired Canadian couple, received a call about selling their Florida timeshare. The scammers, aware of their specific timeshare details, promised a Mexican buyer willing to pay above market value. The fraudsters employed an intricate process involving a fake New York escrow company, ecurrencyescrow[.]llc. The Dimitruks were asked to complete forms and wire more than $3,000 for “administrative” and “processing” fees.

For almost a year, the scammers made additional financial demands, citing various taxes and fees. The couple even sent $5,000 to pay off their remaining timeshare balance, believing it was part of the sale process. Mr. Dimitruk, a 73-year-old retired long-haul truck driver, revealed in an interview with KrebsOnSecurity that they lost more than $50,000 to this scam. Even after this substantial loss, the scammers continued to contact them, claiming their money was waiting and urging further payments.

Fake New York escrow company email (KrebsOnSecurity) (Kurt “CyberGuy” Knutsson)

OUTSMART THE SCAMMERS: HOW THE SNEAKY CEO APPLE GIFT CARD SCAM ALMOST GOT ME

Cartel connections to fraud schemes

The FBI has linked these timeshare fraud schemes to the Jalisco New Generation drug cartel in Mexico. According to a July 2024 warning from the FBI and the Financial Crimes Enforcement Network, these scams are part of the cartel’s efforts to diversify their revenue streams and finance other criminal activities, including drug trafficking.

Since at least 2012, the cartel and other Mexico-based transnational criminal organizations have increasingly targeted U.S. owners of timeshare properties in Mexico, particularly older adults who are often more vulnerable to such scams. The proceeds from these fraudulent activities not only support the cartel’s operations but also contribute to the manufacturing and trafficking of dangerous substances like fentanyl into the United States.

8 PHISHING SCAMS TO WATCH OUT FOR THIS HOLIDAY SEASON

How these scams work

The Jalisco New Generation Cartel (CJNG) has expanded its criminal activities beyond traditional drug trafficking into sophisticated scams, including timeshare fraud targeting unsuspecting individuals, particularly Americans. Here are some of the methods employed by the cartel in executing these scams:

Impersonation of legitimate entities: Scammers often pose as legitimate real estate agents, escrow companies or even officials from U.S. government agencies like the Treasury Department. This tactic is designed to instill a sense of trust and urgency in potential victims, making them more susceptible to fraud.

Targeting vulnerable populations: The cartel primarily targets elderly Americans who own timeshares in Mexico. These individuals are often contacted with offers to buy their timeshares at inflated values, but they are required to pay various fees upfront, such as taxes or closing costs, before any transaction can be completed. Once these payments are made, the scammers disappear, leaving victims with significant financial losses.

Use of call centers: The CJNG operates illegal call centers where employees, often unaware of the cartel’s true nature, engage in telemarketing schemes. These centers are strategically located in regions with high unemployment rates, providing a pool of workers who may be desperate for jobs. The call centers not only facilitate scams but also serve as a means for the cartel to exert control over local populations through intimidation and violence.

Complex fraud schemes: The scams can involve multiple layers of deception. For instance, victims may be contacted multiple times by different scammers posing as various professionals (e.g., lawyers or real estate agents) who claim they can assist with selling their timeshares or recovering lost funds. This re-victimization often leads to further financial exploitation.

Violence and intimidation: The cartel employs extreme measures to maintain control over its operations and silence potential whistleblowers. Reports indicate that workers attempting to quit these call centers have faced dire consequences, including murder, which serves as a chilling message to others considering leaving the cartel’s employment. This brutal enforcement mechanism not only protects their operations but also instills fear within communities.

Digital infrastructure: The CJNG utilizes a network of fraudulent websites and domains that appear legitimate at first glance. These websites often mimic real escrow and real estate firms, making it difficult for victims to discern the authenticity of their interactions. Many of these domains have been linked back to a central hub that manages multiple scam operations simultaneously.

By understanding these operational tactics, you can better appreciate the complexities and dangers associated with scams perpetrated by organized crime groups like the Jalisco New Generation Cartel. This knowledge is crucial for potentially preventing future victimization.

Government warning (U.S. Department of the Treasury’s Office of Foreign Assets Control) (Kurt “CyberGuy” Knutsson)

THE AI-POWERED GRANDMA TAKING ON SCAMMERS

Protecting yourself from timeshare scams

To avoid falling victim to similar scams, it is crucial to take proactive steps to safeguard your financial interests:

1) Verify the buyer’s identity and offer legitimacy: Always confirm the identity of any potential buyer and the authenticity of their offer. Contact the timeshare company directly to validate any claims made by the buyer.

2) Research any company that contacts you: Conduct thorough research on any business reaching out to you. Look for reviews, complaints and verify their credentials through reliable sources.

3) Be wary of upfront fees: Legitimate transactions typically do not require upfront fees for administrative or processing purposes. If a company requests such payments, exercise caution.

4) Use secure communication channels: Avoid sharing personal or financial information over unsecured methods such as phone calls or emails. Opt for secure communication channels whenever possible.

5) Do not click on links: Avoid clicking on any links or downloading attachments from unsolicited emails. Scammers often use these tactics to steal your personal information. The best way to safeguard yourself from malicious links that install malware, potentially accessing your private information, is to have antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe. Get my picks for the best 2024 antivirus protection winners for your Windows, Mac, Android and iOS devices.

6) Consult with professionals before proceeding with transactions: Seek advice from a real estate attorney or a trusted financial advisor before engaging in any transactions. Their expertise can help you navigate potential pitfalls.

7) Report suspicious activity to authorities: If you suspect you’ve been targeted by a timeshare scam, don’t hesitate to promptly report it to local authorities, the FBI’s Internet Crime Complaint Center at ic3.gov or the Federal Trade Commission. Reporting can help protect others from falling victim to similar schemes.

8) Invest in personal data removal services: While the advice provided is valuable, the most crucial step in protecting yourself from such scams is to minimize your online presence. By reducing the amount of personal information available on the web, you make it significantly harder for scammers to target you. No service promises to remove all your data from the internet. However, having a removal service is great if you want to constantly monitor and automate the process of removing your information from hundreds of sites continuously over a longer period of time. Check out my top picks for data removal services here.

SUBSCRIBE TO KURT’S YOUTUBE CHANNEL FOR QUICK VIDEO TIPS ON HOW TO WORK ALL OF YOUR TECH DEVICES

Kurt’s key takeaways

Here’s the deal. These timeshare scammers are clever, they’re persistent, and they’re backed by some seriously bad dudes. But don’t let that scare you into inaction. Remember, knowledge is power. By staying informed and skeptical, you’re already one step ahead of these fraudsters. Trust your gut. If something feels off, it probably is. And don’t be afraid to ask for help or report suspicious activity. Let’s make life a whole lot harder for these scammers and keep your hard-earned money where it belongs: in your pocket.

What additional steps do you think authorities should take to combat telemarketing scams targeting vulnerable populations? Let us know by writing us at Cyberguy.com/Contact.

For more of my tech tips and security alerts, subscribe to my free CyberGuy Report Newsletter by heading to Cyberguy.com/Newsletter.

Ask Kurt a question or let us know what stories you’d like us to cover.

Follow Kurt on his social channels:

Answers to the most asked CyberGuy questions:

New from Kurt:

If you’re like me, your home Wi-Fi is at the center of almost everything you do online, whether it’s online banking, paying bills, booking trips, chatting with friends or streaming movies.

These days, it’s not just your laptop and phone connected to the network, but also things like security cameras, thermostats and even air conditioners are all managed by your router. But be honest, when was the last time you did anything to secure your router? It’s easy to forget about it, especially if it’s working fine. The thing is, a lot of people feel the same way, and a study reveals this “out of sight, out of mind” attitude could be putting millions at serious risk.

GET SECURITY ALERTS, EXPERT TIPS – SIGN UP FOR KURT’S NEWSLETTER – THE CYBERGUY REPORT HERE

Shocking router security facts you need to know

The 2024 Broadband Genie router security survey has uncovered some startling facts about how internet users approach router security. Over half of respondents (52%) admitted they have never adjusted their router’s factory settings. Even more concerning, 86% of users have never changed their router administrator password. Leaving the default admin password unchanged is like leaving your front door unlocked. It’s an open invitation for hackers to exploit.

Similarly, 72% of respondents have never changed their Wi-Fi password. Default passwords are often easily accessible and can be exploited in seconds by knowledgeable attackers. Firmware updates, essential for patching vulnerabilities and enhancing router functionality, are also largely ignored. An overwhelming 89% of users have never updated their router’s firmware. While newer routers often handle updates automatically, user awareness and action remain vital for those with older devices.

Another glaring issue is the failure to change default network names, such as “SKY12345” or “Linksys-7890.” These identifiers can provide hackers with crucial information about the router model, making it easier to exploit known vulnerabilities. Yet, 89% of respondents have never changed their network name.

Image of a router (Kurt “CyberGuy” Knutsson)

CLEVER TRICK TO MAKE A CONNECTION FASTER ON YOUR WI-FI NETWORK

Most people don’t know who’s connected to their network

Alarmingly, 75% of users have never checked to see who is connected to their network. With an average home now hosting around 12 connected devices, failing to monitor network activity could lead to unauthorized access and potential data breaches. Even more worrying, three-quarters of respondents do not understand why adjusting router settings is important, showing a significant gap in awareness about the risks associated with default configurations.

“In 2022, we ran a similar study and found 48% had never touched their router’s factory settings. It’s concerning that not only has the number come down after two years, it’s got worse,” said Alex Tofts, strategist at Broadband Genie.

“Most concerning is the very high percentage of broadband subscribers who don’t even know why they should be making any of these changes. This exposes a clear knowledge gap, and users need to be educated more about the simple steps they can take to help prevent cyberattacks.”

A woman working on her laptop computer (Kurt “CyberGuy” Knutsson)

HOW TO CHECK IF SOMEONE IS STEALING YOUR WI-FI

6 ways to protect your Wi-Fi router from hackers

Keeping your home network secure is essential to prevent unauthorized access and potential data breaches. Follow these steps to safeguard your Wi-Fi router:

1) Change default passwords: Most routers come with default passwords that hackers can easily find online. To secure your router, change both the admin password (used to access settings) and the Wi-Fi network password. Use a strong password with at least 12 characters, combining uppercase and lowercase letters, numbers and symbols. Avoid simple options like “password123” or personal details such as your name or birth date.

2) Rename your network (SSID): The default network name, or SSID, often includes the router’s brand or model, making it easier for hackers to identify vulnerabilities. Rename your network to something unique that doesn’t reveal personal information. Avoid using names, addresses or other identifiers. Instead, opt for a neutral or creative name that’s easy for you to recognize but hard for others to associate with you.

3) Keep your router’s firmware updated: Router manufacturers release firmware updates to patch security flaws and enhance performance. Check your router’s admin panel regularly for updates or enable automatic updates, if supported. Keeping your firmware up to date ensures you’re protected against the latest threats. If your router is too old to receive updates, it might be time to upgrade to a newer, more secure model.

4) Monitor network activity regularly: Unauthorized devices on your network can slow it down and expose you to risks. Log into your router’s admin settings to view all connected devices. If you see anything suspicious, disconnect it and immediately change your Wi-Fi password. You can also enable MAC address filtering to control which devices can access your network or disable features like WPS (Wi-Fi Protected Setup) that may leave you vulnerable.

5) Enable network encryption: Use the strongest encryption protocol available for your router, preferably WPA3 or at least WPA2. Encryption scrambles the data transmitted over your network, making it much harder for hackers to intercept and decipher your information.

6) Regularly reboot your router: Schedule routine reboots to clear the system memory and refresh all connections, which may disrupt potential malware.

TOP ROUTERS FOR BEST SECURITY 2024

Pro tip: Use strong antivirus software: To further protect your devices from malware and other threats, consider using reputable antivirus software. Antivirus programs can detect and remove malicious software, provide real-time protection and alert you to potential threats. Keeping your devices secure helps ensure your entire network remains safe from cyberattacks.

The best way to safeguard yourself from malicious links that install malware, potentially accessing your private information, is to have antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe. Get my picks for the best 2024 antivirus protection winners for your Windows, Mac, Android and iOS devices.

Kurt’s key takeaways

Cybercriminals are constantly evolving the ways they target us, which means securing just your phone or laptop isn’t enough anymore. You need to be cautious with anything connected to the internet, whether it’s your router, smart cameras or doorbell. However, the Broadband Genie survey reveals that only a small number of people are aware of the best cybersecurity practices when it comes to protecting their routers. As a basic rule, always remember to change default passwords and rename your router’s network to ensure better security.

What are your biggest concerns when it comes to cybersecurity? Let us know by writing us at Cyberguy.com/Contact.

For more of my tech tips and security alerts, subscribe to my free CyberGuy Report Newsletter by heading to Cyberguy.com/Newsletter.