North Carolina Consumer Fraud

A North Carolina Senior Consumer Fraud Task Force has been formed by the Office of the Attorney General, the North Carolina Division of Aging and Adult Services and AARP to fight consumer fraud that targets seniors in our State. It is comprised Federal, state and local law enforcement agencies; consumer organizations such as the Better Business Bureau of Eastern North Carolina; North Carolina state agencies such as the Governor's Council on aging and the North Carolina Coalition on Aging to such diverse organizations as the Cooperative Extension and the National Association of Federal Retired Employees.

The emphasis is on prevention of fraud directed at the North Carolina elderly. As more and more elderly choose North Carolina as their retirement home, the more the scam artists target North Carolina residents. The number of schemes is endless but the newest wrinkle in an old scam will give you some idea of how scam artists will target you. The new ploy is in the lottery and sweepstakes winner scam. Where Canada was the favorite place to run these scams, many of the calls and letters are now coming to North Carolina seniors from Costa Rica. Several large fraud groups appear to have set up shop there. They have purchased names, addresses and phone numbers of older adults who enter sweepstakes and other contests. Their hope is you actually entered the one they mention or at least you won't remember that you didn't enter the fake lottery they use. Whether a letter or a call, you will be asked to send money to Costa Rica

The sophistication is such that the call following the letter will look like it is coming from the United States. The calls are actually made from centers in Costa Rica via the Internet with "spoofed" Caller ID information that hides the true origin of the calls. The caller tells you that you have won the international contest referenced in the mailing, and then asks the victim to wire a few thousand dollars to someone working for a British insurance company's Western Hemisphere headquarters. They claim the headquarters are in Costa Rica. The scam artists then tell their victim that the funds will pay the premium on the required insurance policy to protect their prize as it is being transported to North Carolina. Never send money to "claim" a lottery prize. No honest lottery will ask for money in advance. They will take any required funds for taxes out of your winnings.