An international "scam-busting" squad has been alerted after an elderly woman was told she could be abused if she did not support a prize draw. Trading standards officials on Teesside called in the Office of Fair Trading after the Redcar woman became fearful.
The letter, posted in Geneva, Switzerland, warned of a "silent threat" hanging over her.
It went on to say the woman, who has not been named, could be "severely abused" if she did not hand over �17.
The letter, which was correctly addressed, said: "It has become extremely urgent for you to contact me because a silent threat is hanging over you and the danger is becoming ever closer.
Morally bankrupt
"It is imperative for me to enter into a contract with you as quickly as possible. You could be severely abused over the next few days."
The letter, signed by "T Morgan clairvoyant medium" has been passed on to the OFT's scam-busting team.
Redcar and Cleveland Council's chief trading standards officer Jeff Bell, said: "This looks like a new scam, but an old method.
"I find it astonishing that there are morally bankrupt people like this, willing to target vulnerable old people to line their pockets. Thankfully, it didn't happen in this case."
Age Concern chief executive Dave Punshon added: "This is just like the old-fashioned chain letter, but it's far nastier."
He called for tighter controls to be put on the sale of address lists for use by marketing firms.