Scammers are increasingly using the promise of “unclaimed funds” to trick people into handing over money or sensitive information. Experts say this is a common fraud pattern: fraudsters pose as government representatives or affiliated agents and demand payment or the purchase of a new policy before any funds will be released. It’s important to know that legitimate government bodies do not request payments, ask you to buy insurance, or demand new policies in order to release unclaimed money.
How the scam typically works
Scammers use a few repeatable tactics to make their pitch sound convincing. Common elements include:
- Unexpected contact: An unsolicited phone call, text message, email, or social media message claiming you have unclaimed funds.
- Official-sounding language: Fraudsters impersonate government departments, pension services, tax offices, or financial regulators and use official titles or logos.
- Requested payment or policy purchase: You’re told you must pay a “release fee,” tax, or buy a new insurance policy to get the money.
- Pressure and urgency: Messages insist you act quickly or lose the funds, or they threaten legal consequences if you don’t comply.
- Requests for sensitive data: Scammers ask for bank details, ID numbers, or to transfer funds to third-party accounts.
Red flags to watch for
- Upfront fees: Government agencies do not request fees, insurance purchases, or new product sales to release unclaimed money.
- Unsolicited contact: If you did not initiate contact, be skeptical—especially when pressure follows.
- Non-government email domains: Legitimate agencies use official domains; emails from generic providers or misspelled domains are suspicious.
- Poor spelling and grammar: Official communications are typically professionally written. Errors can indicate a scam.
- Payment via unusual channels: Requests to pay with gift cards, cryptocurrency, or transfers to personal accounts are fraud signals.
How to verify a claim safely
- Do not call back using the number provided in the suspicious message. Instead, look up the government agency’s phone number or contact form on its official website and call that number directly.
- Check official databases: Many governments provide searchable unclaimed property registries or guidance pages. Access them by typing the agency name into your browser—not by following links in the message.
- Confirm identities: Ask for a written notice with official letterhead and a reference number. Verify that information through official channels.
- Compare details: Verify whether the agency ever communicates by phone or requires fees for release; most publish their procedures online.
What to do if you’re targeted
- Stop communication: Do not provide money, bank details, or personal ID numbers.
- Preserve evidence: Save emails, texts, voicemail, and any screenshots. They can help investigators.
- Report the attempt: Notify your bank if you shared account information, and report the scam to your local consumer protection agency or the government body being impersonated.
- Monitor accounts: Keep an eye on your bank statements, credit report, and online accounts for suspicious activity.
Act quickly. Contact your bank or card provider and ask them to stop or reverse transactions if possible. Change passwords for any accounts that may be affected. File a report with local law enforcement and the relevant financial regulator or consumer agency. The sooner you act, the better the chances of limiting loss.
Protecting yourself and your business
- Educate employees and family members: Make sure everyone knows that government bodies do not request fees or policy purchases to release money.
- Use official channels: Always verify offers through an agency’s verified phone numbers and websites.
- Install safeguards: Enable two-factor authentication, monitor credit reports, and set transaction alerts with your bank.
- Be skeptical of “too good to be true” offers: If someone promises unexpected money but asks you to pay first, it’s almost certainly a scam.
Final note
Scams centered on unclaimed funds are common and sophisticated, but they rely on a few simple lies: that you must pay to receive money or that buying a policy is required. Remember that legitimate government agencies do not solicit payments or new policy purchases to release funds. A cautious, informed response—verify through official channels, preserve evidence, and report attempts—will protect you and others from falling victim.