Contact 6: Property closing cost scam



MILWAUKEE (WITI) -- FOX6's Contact 6 is warning of a scam targeting those paying closing costs on a property.

"People aren`t very trustworthy these days, and there are a lot of scammers out there today," fraud victim "Betty" said.

Betty knows from experience. She lost thousands of dollars in a timeshare resale scam.

"I received a phone call and they asked me if I wanted to sell my timeshare, and I would say 'yes,'" Betty said.

Two days later, the company called to say Betty had a buyer.

"They said they needed money up front," Betty said.

Betty then sent $2,000 for what she was told were closing costs. When she called to follow up, all she got were excuses.

"They said they were processing the paperwork. That person backed out. Never materialized. I realized it was a scam then," Betty said.

"Many victims fall for it. They send them a check through the mail or credit card and then what happens is their timeshare doesn`t sell," U.S. Postal Inspector Adam Latham said.

Postal inspectors say there are tens of thousands of victims of this scam, and up to $40 million in losses.

Betty says she has learned her lesson.

"I would never pay money up front for anything ever again," Betty said.