Timeshare scams were listed as one of the top 10 fraudulent business schemes of 2010.

The operation is simple. Timeshare owners are contacted by resale companies, promising to sell their properties on their behalf. The resellers claim that they already have a buyer for their timeshares. To facilitate the sale, they ask for upfront fees. Once the funds have been transferred, they walk away from the timeshare owner.

To avoid these scams, regulators advise the following: (1) understand what the reseller is offering (2) ask if the sales representative is licensed (3) get legal advice (4) avoid paying an upfront fee; and (5) double check the company name with the Better Business Bureau.