While there’s a downward trend in the state for violent, drug and property crime, North Carolinians have never been more at risk for fraud and extortion.
According to the North Carolina Department of Public Safety, reports of fraud and embezzlement increased roughly 11% between 2020 and 2024. Extortion and blackmail threats have increased 108% in that same span.
“We are seeing, anecdotally, tons of people coming forward,” Boz Zellinger, criminal bureau chief at the NC Department of Justice, told the Governor’s Crime Commission on Thursday. “We’re seeing these stories over and over again. Folks are preying on an older generation and young people as well.”
Data from the National Incident-Based Reporting System, the Federal Bureau of Investigations’ Internet Crime Complaint Center (IC3) and the Federal Trade Commission point to increasing levels of fraud and were shared with committee members.
In 2024, North Carolina law enforcement agencies recorded 47,013 incidents of fraud; 4,992 incidents of counterfeiting; 2,233 incidents of embezzlement; and 1,448 incidents of extortion at a rate that doubled since 2020.
Over $11 billion was lost due to crypto-currency related scam nationwide in 2025, a 22% increase from the previous year, according to the IC3.
“The losses are staggering,” Zellinger said. “People are dumping in tens of thousands of dollars trying to help their grandson get out of their jury duty scam or found they’re getting catfished. They are dumping it into these crypto currency ATMs and the numeric losses are unbelievable.”
Part of the problem is technology. Victims are targeted through social media, gaming apps and messaging platforms and data breaches making identity theft easier and more precise. Criminals are using fake authority to expedite transactions and move money at a faster rate than before.
There were over 22,000 artificial intelligence-related complaints in 2025 totaling $890 million in losses, according to the IC3. AI reduces the time and effort criminals expend to deceive their targets, according to an FBI PSA.
North Carolina ranks ninth in total IC3 complaints and 12th in total reported losses.
“This is organized crime. These are folks overseas who are doing this generally,” Zellinger said. “This is a different ballgame … All of this makes it so much easier for fraudsters to get information.”
Major fraud legislation forthcoming from the General Assembly are new protections around crypto kiosks. There are now daily translation limits and fraud alert messages displayed for customers, along with a 12% operating fee cap for kiosk owners. They go into effect on Jan. 1, 2027.
“It’s kind of bringing them more in line with other financial products,” said Natalia Botella, the director of the Public Protection Section at the Department of Justice. “It’s not everything that I think should have been done but it’s a step in the right direction.”
Members of the Governor’s Crime Commission were flummoxed that North Carolina didn’t follow the lead of other states and opt to ban the kiosks outright. A leading crypto kiosk company told NC Insider/State Affairs in July they plan to leave the state due to the new regulations and believe the change invites bad actors to the state.
The General Assembly has taken some action. It passed Senate Bill 595, which added protections for disabled and older adults from financial exploitation at banks.
Orange County Sheriff Charles Blackwood said his deputies have been intervening with bank tellers during potential fraud scenarios. He said he’s had discussions with banks about posting alert signage. “We are really grateful to the banks and tellers for saying something doesn’t sound right [and calling us],” he said.
One thing made clear by members of the Crime Commission is that fraud targets people regardless of background.
Zellinger and Botella both said they’ve struggled to find a legitimate purpose for the kiosks, echoing comments made to NC Insider by Indiana Rep. Wendy McNamara, the leading legislator behind a successful effort to ban crypto-currency ATMs in her state.
“Our state didn’t go that far,” Blackwood said. “What can we do either as the Sheriff’s Association or the Governor’s Crime Commission to bolster that argument to our [Legislature] to say, ‘Let’s do this and what is the legitimate purpose [of these kiosks]’’?
“We need to be armed with more data and increase the amount of reporting so folks can go to their legislators and say, ‘Look, I’ve had 60 people in our county in the last year who have dumped money,’” Zellinger responded.
A hindrance to fraud data collection is the fact that many victims are ashamed and embarrassed if they’ve fallen victim to a scam. Fraud shame, where victims blame themself rather than criminals for their predicament, leads to less reporting for law enforcement. An AARP survey found that 85% of Americans believe fraud can happen to anyone, but 53% identify victims as culpable and blameworthy.
The North Carolina State Board of Elections on Friday approved changes in how counties handle absentee ballots.
Major changes include how missing signatures on ballot envelopes or unsealed envelopes are handled. An improperly sealed envelope, for example, used to be considered a “non-material error” and could still be counted. County boards must now receive absentee ballots by 7:30 p.m. on Election Day.
With the General Assembly not expected to reconvene until November, the state board opted to bypass legislative review to ensure procedural safeguards would be in place for the Nov. 3 midterm elections. The board has been working since January on rules for handling absentee ballot voting irregularities.
Some board members objected to skipping the legislative review process.
“Legislative review doesn’t mean just rubber-stamp it and we do it,” Democratic board member Siobhan Millen said, adding that any objections to the rules should be looked at to “see if we need to make some tweaks or changes.”
“What these rules are will not change what voters experience,” Republican board member Stacy “Four” Eggers said. “The Legislature has given direction on how they see this should be addressed and fixed. We ought to go ahead and fix it.”
It remains unclear how many ballots could be affected by the changes. At the meeting, Millen said she heard from county officials that anywhere from 3% to 20% of absentee ballots in previous elections may have had the minor technical errors that could have led to their rejection under the new rules.
I-77 Cost
The N.C. Department of Transportation said Friday it has spent nearly $70 million designing the Interstate 77 toll lanes in Charlotte. Republican lawmakers in Raleigh passed a state budget provision that would require opponents to pay that amount back if local governments don’t back the controversial project. The DOT spent most of the money, nearly $60 million, on consultants to design the massive $4 billion project, which would expand the interstate from uptown to the South Carolina line. RS&H, a planning firm, received the most: nearly $28 million. But Democratic Gov. Josh Stein’s DOT listed numerous other charges, such as meals, attorneys' fees, office supplies and hotel rooms.
The expenses go back to November 2018 — six years before the Charlotte Regional Transportation Planning Organization backed a public-private partnership for the project in fall 2024. The CRTPO board reversed course and rejected the project in May.
But the board is scheduled to vote again on the toll lanes on Sept. 23. If the planning board backs the project, no one has to pay. Local governments that oppose the toll lanes would be billed a share of the $70 million.
The city of Charlotte has a weighted vote on CRTPO that’s worth more than 40% of all votes. If the city doesn’t back the project, it would be responsible for most of that reimbursement. GOP lawmakers hope the financial penalty forces opponents to change their minds.
I-40 Reconstruction
New geotechnical information gathered during reconstruction of Interstate 40 through the Pigeon River Gorge has provided engineers a more complete picture of conditions beneath the roadway, resulting in revised cost and schedule estimates for the largest reconstruction project in N.C. Department of Transportation history. Based on the information available today, NCDOT’s current estimated cost to reconstruct the corridor is approximately $2.8 billion, compared with an approximately $2 billion estimate earlier this year. The Department currently estimates restoring four lanes of traffic by late 2029 and continues to evaluate opportunities to accelerate that timeline. Cost and timeline estimates reflect the project team’s current understanding of the work required and will continue to be refined as design and construction advance and additional information becomes available. “This is the most complex reconstruction NCDOT has ever conducted, and we remain focused on delivering the safest, most durable solution while carefully managing taxpayer dollars,” N.C. Transportation Secretary Daniel Johnson said.
Harbor Project
The initial environmental reports on the expanding of the Wilmington harbor were released in July, and despite continued concerns and opposition downstream from the project including in Southport, Oak Island and Bald Head Island, officials plan to move forward. State officials are proposing to spend more than $1 billion in federal and state tax dollars to deepen the Cape Fear River channel from 42 to 47 feet in the 38-mile stretch between Wilmington and Bald Head Island. Southport Alderman Karen Mosteller, who has been in contact with several municipalities and other entities, requested a harbor update be put on last month’s board meeting agenda. She said her focus was on raising public awareness of the project and continuing to look at possible legal options to minimize potential negative impacts of the project. Village of Bald Head Island Manager Chris McCall said at the board’s August meeting that the village’s legal counsel and other stakeholders sent letters to the U.S. Army Corp of Engineers requesting the project not move forward due to continued economic and environmental concerns. The Town of Oak Island also signed the joint statement against the widening project. Mosteller spoke in front of council members to ask for support at a recent meeting. State officials hope to begin work on the widening project in 2030, which is expected to take approximately six years to complete.