Friday, March 2, 2018

How to identify Mexico Escrow Fraud

How to identify Mexico Escrow Fraud

There are various scams to avoid. Oftentimes, it is difficult to decipher between legitimate businesses and operations and ones that are schemes to steal your money. Below we will discuss the Mexico escrow fraud and how to avoid it happening to you or your loved ones.

Mexico escrow fraud

One of the most common scams is something we call “the Mexico escrow fraud.” Buying property or timeshares in Mexico can often be a confusing and complex process, and it is important to be aware of scams to protect yourself and your assets. The Mexico escrow fraud happens when a company or individual earns your trust, and then eventually asks you to wire funds to a Mexican escrow company to lull you into a false sense of security. However, this is likely an illegitimate company or account and you may be putting yourself at risk of losing large amounts of money.

No legitimate title company connected

The scary reality of this Mexico escrow fraud is that there is no escrow fund. The money generally gets deposited directly into a legitimate Mexican bank to an account owned by the perpetrators of the scam, but there is no legitimate escrow company connected. This often happens even when there is no buyer for your timeshare and no legitimate title company associated with the transaction.

Fake office addresses located in USA

Oftentimes, Mexico escrow fraud perpetrators have fake addresses and telephone numbers for offices they claim are located in the USA to give you a sense of security and confidence in your purchase. However, these companies do not exist at the addresses in the USA they claim. Their phone numbers show US area codes, but they are usually really calling from Mexico. Technology and VPN’s allow companies and individuals to appear to be calling or operating from the US when in fact they may in Mexico or another country in order to operate and enforce Mexico escrow fraud illegally. 

No extra fees/taxes

Another common practice to help identify Mexico escrow fraud is that they will claim there are no extra fees (taxes, etc.) required by Mexico to sell your timeshare. As in any real estate or timeshare transaction, there are always fees and taxes required when property is sold or bought. If you are approached by a company or individual and they claim there are no fees or taxes required to share your timeshare, your fraud radar should definitely be raised.

How to ensure a Mexico Escrow is legitimate?

Obviously, not all Mexico escrow companies are frauds. With a little research, you can discover which genuine Mexico escrows to use.

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