Timeshare Exit Scams Are on the Rise
Be wary of fraudulent schemes both online and offline
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With an increasing number of timeshare Owners falling prey to scammers, it’s crucial to stay vigilant
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Visit the Club website for more resources on how to protect yourself against third-party exit fraud.
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Falling victim to a scam is undoubtedly a highly distressing experience. Unfortunately, with the rise of fraudulent schemes, even the savviest of timeshare Owners aren’t immune.
Recently, Hilton Grand Vacations received reports of several Owners being targeted by a third-party exit scam that convinced them to wire money to a bank in Mexico. To mislead Owners, the scammer used the Hilton and Diamond Resorts letterheads, official logos, attorney names and license numbers, escrow company names, confusingly similar email addresses and, on at least one occasion, the name of an actual Team Member.
“This really exemplifies the sophistication of these scams — everything looks legitimate to the customer,” says Kelly Lodde, associate general counsel at Hilton Grand Vacations. These scams have received so much attention that in 2020, the FBI issued a statement about such schemes, warning consumers to “be suspicious of any uninvited offers regarding your timeshare.”
Below, we’ve outlined how to identify such scams — and what to do if you think you’ve been targeted.
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Many exit scam documents use the official Hilton letterhead to appear more legitimate
A common scam is to offer timeshare Owners an “easy way out” of their vacation ownership. These schemes often claim to be able to help the Owner cancel their timeshare, but sometimes can lead to foreclosure or result in the Owner being enrolled in yet another travel program — while still possessing their original timeshare. Other operators offer to list the timeshare for sale (or for rent) on their website, which is rarely visited by anyone.
At the end of the day, such offers are often fraudulent and come with a hefty upfront fee, leaving timeshare Owners hundreds to thousands of dollars out of pocket.
An easy way out
Scammers also commonly promise to offer timeshare Owners a way to earn income from their vacation ownership. As such, if you receive an unsolicited communication to sell or rent your timeshare, it’s important to be vigilant, Kelly cautions. “In particular, I’ve been seeing more scammers trying to convince HGV Owners they can make money — whether it’s from renting or selling their timeshare,” she adds.
With this scheme, Owners are being told they have bonus weeks, Points, unlocked benefits, RCI weeks or similar that can be rented for a profit if an upfront fee is paid. The scammers often promise it will be easy for Owners to rent their weeks because they are needed for conventions or other events, even going as far as promising earnings of between $1,300 and $2,000 per week. “Unfortunately, this is both false and a violation of the Hilton Grand Vacations Club Program,” Kelly explains.
A source of income
The biggest red flag is an upfront fee of any kind — whether it’s described as taxes, processing fees, advertising fees, escrow fees or otherwise.
Another red flag is if the offer violates the rules of the Club program in question. Hilton Grand Vacations Club is designed for Members’ personal use and enjoyment. Accordingly, the Club Rules do not allow for any commercial use of the program. So, if someone tries to convince you that you can make money from your HGV timeshare, it’s probably a scam.
Some other tell-tale signs include being asked for personal information or having to fill out extensive paperwork that confuses you about what exactly you’re agreeing to. And, of course, fraudulent operators tend to make grandiose promises. Remember, if it’s too good to be true, it probably is.
Red flags to watch out for
Unfortunately, fraudsters commonly misrepresent who they are affiliated with. In the case of complaints submitted to HGV and fraudulent schemes we’ve witnessed, many of these companies often state they’re part of HGV or are contacting you on behalf of RCI. “If communications look or sound different from what you’re used to receiving, they’re likely not from us,” says Kelly.
For example, HGV will not:
Questionable communications
Leave pre-recorded sales messages.
Ask you to wire money.
Ask a third party to call you on our behalf to talk about your timeshare.
Hold Owner meetings at local hotels or restaurants to update you on changes regarding your resort or maintenance fees.
Most important, we do not share your information with companies that would offer to sell or rent your timeshare or related benefits, or with those that would sell you a vacation package.
When in doubt, do not engage with the caller or respond to the email. If you do speak with the caller, try to gather as many details as possible but do not disclose any personal information.
Whether you engage with the person who contacted you or not, always report the incident to us. “Owners need to stay vigilant, but they also need to fight this battle with us by reporting any scams they encounter to both HGV and the authorities,” says Kelly.
You can file a report using our Incident Intake Questionnaire and email it to us at privacy.matters@hgvc.com. In addition, you can file a complaint with the Attorney General’s office in the state where you reside.
What to do if you’re targeted
Scammers might also attempt to hack into your HGV Club Member account. If you’ve yet to enroll in two-factor authentication on the Club website, we recommend doing so as soon as possible. Simply follow the steps below:
1. Click on the red lock icon on your Member Dashboard.
2. You’ll then be directed to the Account Information page. From there, click sign up for two-factor authentication to start the process.
3. Next, select your country of residence and enter the phone number you’d like your two-factor code to be sent to.
4. A text message with a verification code will be sent to your phone. Enter the code on the Club website when prompted.
5. The red lock icon on your Member Dashboard will turn green once you’ve successfully activated two-factor authentication.
6. The next time you log in to the Club website, you’ll be required to enter a new verification code to confirm your identity. The code will be sent to your registered phone number.
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