Unclaimed Property: What You Need to Know and How to Avoid Scams

In this article:

• What Is Unclaimed Property?
• Is Unclaimed Property a Trap?
• How to Avoid Unclaimed Property Scams

Have you ever received a notice claiming that you have unclaimed property waiting for you? It might sound like a windfall, but before you take any action, it’s crucial to understand the potential risks involved. Unclaimed property scams are on the rise, and knowing how to identify and avoid them can save you from losing money or compromising your personal information.

What Is Unclaimed Property?

Unclaimed property refers to money and other assets that have been turned over to the state when the owner cannot be located. Common examples include:

• Paychecks you forgot to cash
• Overpaid utility bills
• Forgotten security deposits
• Old bank accounts

After a certain period, if the owner cannot be found, these assets are handed over to the state. The state holds onto them until you claim them or respond to state-sent letters alerting you to the unclaimed property.

Is Unclaimed Property a Trap?

While unclaimed property itself is legitimate, the process can be exploited by scammers. In an unclaimed property scam, fraudsters contact you via mail, text message, or other means, claiming you have unclaimed cash waiting for you. They may ask for sensitive information, such as your Social Security number, or even money to claim the property.

How to Avoid Unclaimed Property Scams

The best way to avoid unclaimed property scams is to be vigilant and watch out for red flags. Here are some steps to take to avoid falling victim to these scams and safely reclaim your forgotten assets.

1. Beware Signs of Phishing

Phishing attempts can be sophisticated, but there are common red flags to watch out for:

• Threatening or urgent messages
• Offers that seem too good to be true (e.g., a long-lost relative leaving you millions)
• Generic greetings in texts, emails, or phone calls
• Requests for money or personal information
• Strange attachments or links

Unclaimed property scams often involve fake communications from supposed estate attorneys or government agencies. Unexpected messages from these sources should immediately raise suspicion.

2. Don’t Be Pressured Into Action

Scammers often create a sense of urgency, warning that “time is running out to claim your money.” Ignore these scare tactics. Instead, review the communication closely to see which agency it claims to be from, and look up that agency independently. Verify its legitimacy and contact information before responding.

3. Use a Legitimate Unclaimed Property Database

You can search for unclaimed property for free using trusted databases. Start with the official National Association of Unclaimed Property Administrators (NAUPA) website to learn how to conduct a search in your state. Alternatively, 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 specific tools for different types of assets:

• The National Credit Union Association hosts a deposit search database for locating unclaimed money from liquidated accounts.
• The U.S. Courts’ administrative office lists unclaimed funds 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 not necessarily scams, unclaimed property locators, also known as “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 regulated in some states, it isn’t necessary to use one. Plus, it can be challenging to distinguish a good finder from a bad one.

The Bottom Line

Unclaimed property scams use spoofing techniques to exploit the unclaimed property process. To avoid them, search for and claim your forgotten property on your own. If you receive a notice about money that could be yours, verify the notice by searching for unclaimed property on a legitimate website. This way, you won’t lose cash or risk having your identity compromised when trying to claim the property.

At O1ne Mortgage, we understand the importance of protecting your financial well-being. If you have any questions about unclaimed property or need assistance with your mortgage needs, don’t hesitate to call us at 213-732-3074. Our team of experts is here to help you navigate the complexities of the financial world and ensure your assets are secure. Contact O1ne Mortgage today for all your mortgage service needs!