Staying One Step Ahead of Scammers

By Hon. Elaine F. Marshall, North Carolina Secretary of State

Financial fraud is one of the fastest-growing threats facing senior citizens today – and it’s happening every day across North Carolina. The good news? Knowledge really is power. By understanding how scams work and knowing where to turn for help, seniors can protect not only their hard-earned savings, but also their health and peace of mind.

As North Carolina’s securities regulator, I often describe my role as being the “cop on the beat” for investments. Our agency has sworn law enforcement officers who investigate investment fraud from Murphy to Manteo, and everywhere in between. Unfortunately, seniors are often the main target. About half of our securities investigations involve scams aimed directly at older adults. Even more troubling, experts estimate that for every case that’s reported, another 44 cases never are.

That’s exactly why staying informed is one of the strongest tools we have.

One simple rule can make a world of difference: “Check Before You Write One.” In plain terms, most people who sell investments or give personalized investment advice must be registered with our office. Most investment products must also be registered. Before you invest a single dollar, call our Investor Hotline at (800) 688-4507 and ask us to verify both the person and the product.

Is registration a guarantee that someone is honest? No. Even Bernie Madoff was registered at the time of his arrest. But here’s the key point: if someone who should be registered isn’t, they’re breaking the law. That’s a huge red flag. A quick phone call could save you from a very costly mistake.

Looking out for yourself is important – but looking out for each other matters, too. If you notice a friend or neighbor being pressured into an unfamiliar or “too good to be true” investment, especially by someone they didn’t know very well a few months ago, don’t stay silent. Ask questions. Be politely nosy. Scammers thrive when no one speaks up.

One of the fastest-growing concerns right now involves cryptocurrency ATMs, which you may have seen in convenience stores or gas stations. There are about 1,400 of these machines across North Carolina. Unlike traditional bank ATMs, crypto ATMs are not regulated. Scammers often use fear, urgency, or false promises to push people into depositing money quickly.

Once money goes into a crypto ATM, it’s usually gone for good. Scammers move it fast, making it extremely difficult – if not impossible – to trace or recover.

Here’s an easy rule to remember: no legitimate investment and no government agency will ever ask you to pay taxes, fines, or fees through a crypto ATM. Ever! If someone tells you to do that, put your hands on your wallet and walk away.

To help spread the word, my office has teamed up with the Attorney General, AARP North Carolina, United Way, and local law enforcement. Under a pilot project, local law enforcement in different parts of the state are beginning to have conversations with business owners and asking them to post simple warning signs near crypto ATMs—just a reminder to pause and think before using them.

If you think you’ve been targeted by an investment scam, please call my office or file a complaint at www.sosnc.gov. I truly mean this: I would rather get 99 calls that turn out to be nothing than miss the one call that helps stop a con artist.

Not sure who to call? Just dial 2-1-1 anywhere in North Carolina. United Way’s free, 24-hour, confidential service can connect you with a trained specialist who will point you to the right agency.

Fraud loves confusion and secrecy – but it struggles in the light. Stay curious. Ask questions. Trust your instincts. And never hesitate to reach out for help. Speaking up doesn’t just protect you – it may protect a friend, a neighbor, or someone you love.