By
The Associated Press
SIERRA VISTA, Ariz. - At least 10 local residents have fallen prey to recent telemarketing fraud in the last month, said an FBI spokesman.
All the victims sent money, said FBI spokesman Ed Hall. One individual sent $2,000.
The majority of the calls are made on two claims.
Some victims are told they have won a large sum of money in a sweepstakes in Canada. But before they can transfer the money to the United States, the person must pay a transfer fee and taxes on the winnings.
The telemarketers usually ask victims to send a check, wire the money or mail a check. Some of the callers agree to pay with a credit card.
The second scheme claims the person has won a large settlement from a court case against the Canadian lottery. The person is then told they must pay attorney's fees before they can receive the settlement.
The Arizona Telemarketing Fraud Task Force, which is prosecuting the case, was formed by officials from the FBI, IRS, the U.S. Postal Inspection Service, the U.S. Attorney's Office and the Arizona Attorney General's Office.
Hall said the Canadian government is cooperating with the investigation, but that it's time consuming to extradite a suspect for prosecution.
The Canadian Association of Retired Persons reports that illegal telemarketing is a $5 billion a year business in Canada. Eighty percent of the victims of Canadian telemarketing fraud live in the United States.
Telemarketing fraud in the United States is a $40 billion a year business in the United States, Hall said.
