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If you've received notice that you're entitled to unclaimed property, you might be due a windfall. Before you take action to claim it, however, know that it could be a scam.
In a typical unclaimed property scam, a fraudster contacts you via mail, text message or other means saying you have unclaimed cash waiting for you. Once contact is made, they may ask for your sensitive information, such as your Social Security number, or for money to claim the property.
While unclaimed property is real, requests for personal data or financial information should always elicit your suspicion. Here's what you need to know about unclaimed property scams, plus how to check if an unclaimed property notice is legit and how to claim your money.
What Is Unclaimed Property?
Unclaimed property is money and other assets that get turned over to the state when the owner can't be found. Common examples of unclaimed property include:
- Paychecks you forget to cash
- Overpaid utility bills
- Forgotten security deposits
- Old bank accounts
After a period of time, your forgotten property or accounts get handed over to the state if you can't be found. The state holds on to it until you reach out to claim it or respond to state-sent letters alerting you to the unclaimed property.
Is Unclaimed Property a Trap?
An unclaimed property notice can be legitimate, but unclaimed property scams are real too. In an unclaimed property scam, a criminal takes advantage of the unclaimed property process to try to steal your money or data.
Typically, a scammer attempts to lure you into providing your information by pretending to be a government official in "phishing" attempts via email, text or phone call. They may promise to reunite you with a large sum of money or some other asset, such as a car. In reality, their goal is to get their hands on your sensitive, identifying information or your money.
Learn more >> What Is Phishing?
How to Avoid Unclaimed Property Scams
The best way to avoid unclaimed property scams is to think defensively and watch out for red flags. Here are steps to take to avoid unclaimed property scams, plus get safely reunited with your forgotten assets.
1. Beware Signs of Phishing
While phishing attempts can be extremely sophisticated, there may be common red flags that could tip you off. Here are some telltale signs that a message could be from a scammer:
- Threatening or urgent messages
- Things that are too good to be true (for example, saying a long lost relative has left you millions in inheritance)
- Generic text, email or phone greetings
- Requests for money or personal information
- Strange attachments or links (which could also be phishing attempts or malware)
In particular, unclaimed property scams often involve a phony piece of communication from a fake estate attorney, or a text from someone claiming to represent a government agency. Unexpected communications from either of these sources should immediately raise suspicion.
Learn more >> The Latest Scams You Need to Be Aware Of
2. Don't Be Pressured Into Action
Don't engage with messages that attempt to create a sense of urgency and fear with a warning that "time is running out to claim your money; respond right away." Your best course of action is to ignore notices that use these scare tactics.
Instead, review the communication closely to see what agency it claims to be from, and look up that agency independently. If you're able to verify that the agency is legitimate, you should also independently verify its contact information, rather than responding to the notice. Then, contact the agency directly to ask what you're owed.
3. Use a Legitimate Unclaimed Property Database
You can search for unclaimed property for free by searching through a trusted database.
To get started, use the official National Association of Unclaimed Property Administrators website to learn how to conduct an unclaimed property search in your state.
Alternatively, you could use MissingMoney.com, which conducts a national search and directs you to file a claim on the state-specific site if any unclaimed property is found.
There are also unclaimed property search tools for specific types of assets:
- The National Credit Union Association hosts a deposit search database for locating unclaimed money from liquidated accounts
- The administrative office of the U.S. Courts lists unclaimed funds resulting from bankruptcy proceedings in the U.S. Bankruptcy Unclaimed Funds Locator.
- Treasury Hunt is a U.S. Treasury search tool for finding forgotten securities or uncollected interest owed to you or a deceased loved one.
4. Avoid Third-Party Services
While these are not necessarily scams, unclaimed property locators, also called "finders," charge a fee to locate your unclaimed property—something you can do for free via Unclaimed.org.
While finders are typically acting legally and are even regulated in some states, it isn't necessary to use one. Plus, it can be challenging to tell a good finder from a bad one.
The Bottom Line
Unclaimed property scams use spoofing techniques to take advantage of the unclaimed property process. To avoid them, search for and claim your forgotten property on your own.
If you get a notice about money that could be yours, verify the notice by searching for unclaimed property on a legitimate website. That way, you won't lose cash or risk having your identity compromised when trying to claim the property.