Avoiding Unclaimed Property Scams

Understanding Unclaimed Property Scams

As you navigate end-of-life matters or settling a loved one's affairs, you may come across communications about unclaimed property or assets in your name. While there are legitimate cases of unclaimed funds or valuables, scammers often exploit this area using deceptive tactics.

Unclaimed property refers to money or other assets that have been abandoned or forgotten by the rightful owner. This could include things like old bank accounts, stocks, insurance payouts, or safe deposit box contents. By law, companies are required to turn over unclaimed property to state-run programs after a period of inactivity.

Scammers take advantage of the unclaimed property system by sending misleading offers or impersonating government agencies. Their goal is to trick you into paying upfront fees or revealing sensitive personal information like Social Security numbers under false pretenses.

Staying vigilant and understanding the warning signs of unclaimed property scams is crucial to protecting yourself and your assets. In this guide, we'll cover common scam tactics, tips for identifying legitimate sources, and safe steps for checking and claiming any property you may be owed – all for free.

Common Scam Tactics to Watch Out For

Unclaimed property scammers employ a variety of misleading and deceptive tactics to appear legitimate. Here are some common red flags to watch out for:

• Unsolicited calls, emails or letters claiming you have unclaimed assets
• Requests for upfront fees to obtain or "release" supposed property
• High-pressure sales tactics urging you to act immediately
• Claims of being affiliated with state agencies, with imposter websites/branding
• Asking for sensitive personal or financial information like Social Security numbers

While sometimes initial vague notifications are sent by real state unclaimed property offices, any request for money upfront is a definite scam. Legitimate unclaimed property can always be claimed for free through proper state-managed channels.

Scammers may use names similar to official agencies like "State Claims Recovery Services" or claim special private databases allow them to locate your assets. Their communications often lack proper details about the property.

How to Identify Legitimate Unclaimed Property Sources

So how can you distinguish legitimate unclaimed property sources from scams? A key thing to look for is whether communications are originating from your actual state's unclaimed property office.

Each U.S. state, as well as the District of Columbia, Puerto Rico, and other territories maintain official unclaimed property programs overseen by the state treasurer's or comptroller's office. These are the only legitimate sources for checking what unclaimed property may be held in your name.

For example, California's program is called "California's Unclaimed Property," while Florida administers "Florida's Unclaimed Property." You can find official contact information by searching "[Your State] Unclaimed Property" online. Any other third-party entity requesting fees or personal information should be viewed skeptically.

The National Association of Unclaimed Property Administrators (NAUPA) and NAUPA's program MissingMoney.com are also legitimate national resources for searching across multiple state databases. But generally, you'll need to deal directly with the state holding any property.

Safely Checking for Unclaimed Property You May Be Owed

So you've identified legitimate state unclaimed property sources – now what? The good news is checking what property you may have is simple, safe and free when going through proper channels.

To start, visit the official unclaimed property website for your state. You'll likely need to do a public record search by entering information like your name, previous addresses and city/state combinations.

State-run databases will then show any matching unclaimed property they have on record. Results may list details like the holding institution (e.g. bank, company), reported amount, and property type.

Some states also allow searching across multiple programs or offer a national search option powered by NAUPA's missing money database. Just be sure any links navigate you to a legitimate .gov website.

At no point should you need to pay fees or give out sensitive information like banking details or your Social Security number to simply check what you may have.

Claiming Legitimate Unclaimed Property for Free

If you discover unclaimed property in your name through an official state database, you can easily begin the claims process to have it returned – at no cost.

Most states provide online claims forms to start, where you'll need to enter details like:

• Your name and current contact information
• Previous addresses where property was held
• Identifying details about the specific property
• Proof of ownership (e.g. old account statements if available)

You'll also need to submit a copy of a photo ID, like a driver's license. Some claims may require additional verification like providing a Social Security number, but this information should only go to official state resources.

Once a claim is processed and approved, any cash property will be sent to you via check. Non-cash items like safe deposit box contents will be shipped or available for pickup.

The entire process is handled directly through the state at no charge to you as the rightful owner. If anyone requests payment upfront, it's an immediate red flag of a scam attempt.

Protecting Yourself from Scams - Best Practices

Beyond recognizing the hallmarks of unclaimed property scams, there are several best practices you can follow to avoid becoming a victim:

• Never pay money upfront to claim supposed property - legitimate claims are free
• Resist high-pressure tactics urging you to act quickly without research
• Independently verify the legitimacy of any solicitor by checking state resources
• Do not give out banking information or Social Security numbers to unverified sources
• Use healthy skepticism with any cold calls, emails or letters about "unclaimed assets"

Remember, scammers often prey on vulnerability during major life events like settling an estate. Take your time, don't get hustled, and stick to proper state-managed unclaimed property channels.

If an offer seems too good to be true or uses high-pressure sales tactics, it's likely a scam attempting to access your finances or personal data illegally. Trust your gut instincts.

Where to Report Suspected Scams and Get Help

If you encounter suspected unclaimed property scams or have been a victim, there are government resources to both report the activity and get assistance.

You should report any scam attempts to the following authorities:

• Your State's Unclaimed Property Office
• The Federal Trade Commission at ReportFraud.ftc.gov
• The FBI's Internet Crime Complaint Center (IC3) at ic3.gov
• AARP's Fraud Watch Network Helpline at 877-908-3360 if you're an AARP member

Reporting details can help track down scammers and prevent others from being victimized. When filing a report, include specifics like dates, monetary losses, phone numbers called from, and copies of any communications received.

If you or a loved one has already fallen victim to an unclaimed property scam, there are support resources like the National Center for Victim Assistance and the Identity Theft Resource Center to help recover.

Don't let shame prevent you from reporting - unclaimed property scams can seem legitimate, and you're not alone. Getting authorities involved can help shut down fraudulent operations.

Wrapping Up - Don't Let Scammers Fool You

Unclaimed property can seem like an unexpected financial boost, making the prospect of having assets waiting tempting. But scammers take advantage of this hope through deception.

Remember, while you may have legitimate unclaimed funds out there, you can easily claim anything you're owed for free by going through proper state-managed channels. Immediately disregard and report any solicitations requesting fees or personal data.

By sticking to the best practices outlined here, you can safely search what property you may have while protecting yourself from increasingly sophisticated unclaimed property scams. Don't let fraudsters take advantage during an already stressful time - use our trusted tips to claim what's rightfully yours scam-free.