Unclaimed money and heir-finder scams

Real unclaimed money exists, including life insurance benefits, but you never need to pay anyone to learn about it or receive it. Searching official state databases, MissingMoney.com and the NAIC Life Insurance Policy Locator is free. Be skeptical of any letter, call or message that says you are an heir to a stranger's policy or that asks for a fee, a "tax" or your bank details first.

Two different things

Fake inheritance and policy letters are made up. There is no policy, no client who died and no money. Paid finders and heir researchers are a real, partly regulated industry that locates owners of unclaimed property or heirs of estates for a share. Most complaints about finders involve high percentages, vague contracts or services that duplicate free searches rather than outright fraud, though some operators are fraudulent. The line between the two matters because the cure is different: ignore the first, read the contract of the second.

The fake unclaimed policy letter

The FTC's July 9, 2026 consumer alert describes mail from a supposed law firm saying a client with your last name died and that you are the heir to a policy worth millions, with proceeds to be split among you, charities and the firm. The FTC says it is a letter from a scammer, that the policy, client and inheritance do not exist, and that the aim is your Social Security number, bank information or money. Its advice is to not respond or send money or information to strangers promising rewards, to share the alert, and to report the scam at ReportFraud.ftc.gov. The Kansas Insurance Department issued a similar consumer alert in March 2023, so the scheme has circulated for years.

Common features:

• A shared last name is the only connection.
• Foreign or out-of-state "attorney" and an unusually large sum.
• A request to reply quickly and keep the matter confidential.
• Requests for ID copies, a bank account for "transfer" or fees for taxes, insurance, "clearance" or legal costs.
• A return address that is a mailbox service.

Fake state or government "unclaimed property" contacts

Scammers also copy state unclaimed property programs. The National Association of Unclaimed Property Administrators (NAUPA) has described letter scams using fake registration or "stamp" fees and even NAUPA's own letterhead, according to Stateline's 2017 report. A state treasurer, comptroller or other administrator will not charge to release your own property, and a legitimate claim form does not require you to pay up front. NAUPA's unclaimed.org points to official state programs and to MissingMoney.com, which it describes as a free site from which you can search participating states.

Where to search for free

The NAIC reported on September 3, 2026 that since the locator launched in November 2016 insurers have reported more than 780,000 matches worth about $17.0 billion, with searches able to take as long as 90 business days. Many states now require insurers to compare their records with the Social Security Death Master File; see Death Master File checks and the unclaimed benefits settlements and unclaimed life insurance money and state unclaimed property. For a step-by-step process, read how to find a lost life insurance policy.

If a finder or heir researcher contacts you

Legitimate firms exist. Probate genealogists locate heirs of estates and unclaimed-property finders locate owners, usually for a percentage or contingent fee. Some states limit fees; Stateline reported that some cap them at 10 percent. Rules differ widely, so ask your state's program. Before signing:

1. Verify the claim yourself first. Search official sites for your name and the relative's. If the money is on a state list, you can claim it directly at no cost.
2. Ask what the firm knows and why it needs you. A real firm names the estate or the holder once there is a signed agreement; a scam cannot give verifiable detail.
3. Read the contract. Look for the percentage, whether it is on the gross amount, any extra costs, how long you are bound, and whether it assigns part of your claim.
4. Never pay a fee before money arrives.
5. Confirm the holder (the state or the insurer) independently and ask whether your claim form can be filed directly.
6. Check any attorney through the bar association of the state listed on the letter.
7. Consider a lawyer for large or contested estates; see when to hire a life insurance lawyer.

For beneficiaries of a policy you really are owed

If you believe you are a beneficiary, contact the insurer's claims department using a number from its official site and follow how to file a life insurance claim. If a letter promises a benefit, check the policy exists before sending documents. A real insurer already holds the policy number, the owner's name and the beneficiary designation; a scammer wants you to supply them. If there is a dispute over who gets paid, see life insurance beneficiary disputes and interpleader.

If you responded

• Stop all contact and keep the letter, envelope and any messages.
• If you sent money, contact your bank or payment provider immediately.
• If you shared your Social Security number or ID, consider a credit freeze and check IdentityTheft.gov.
• Report to ReportFraud.ftc.gov, your state attorney general or insurance department, and the U.S. Postal Inspection Service for mail fraud. Insurance regulators accept reports of fake insurance claims and letters, and how to file a complaint against a life insurer explains the process for genuine insurer disputes.

Key takeaways

• Never pay to receive a death benefit or to search for unclaimed money; official searches are free.
• A letter from a stranger saying you share a last name with a rich "client" is the FTC-flagged unclaimed-policy scam.
• Use the NAIC locator, your state unclaimed property site and MissingMoney.com instead of paid middlemen.
• Legitimate heir researchers charge contingent fees; read the contract, check state limits, and verify the claim yourself.