When Americans receive a call, email, or letter about unclaimed funds sitting in a state treasury, many don’t know whether to trust it or hang up. The problem is real: scammers have perfected the art of impersonating legitimate state agencies to collect processing fees from unsuspecting victims, making it increasingly difficult for people to distinguish between genuine state notices and fraudulent schemes. The confusion is understandable—unclaimed property is a legitimate government program that returned nearly $4.5 billion to Americans last year, but criminals are actively exploiting public awareness of this program to commit fraud. A specific example: someone might receive a call claiming to represent their state comptroller’s office, complete with official-sounding language and a request to pay a “retrieval fee” of $50 to $200 to access funds.
The victim has no way to verify the caller without doing additional research, and by then, they may have already paid. This confusion between scams and legitimate notices represents a critical gap in public awareness. While we don’t have data on exactly what percentage of Americans mix up the two, we do know that over 800 consumers reported phishing scams involving unclaimed property claims to the Better Business Bureau in 2025-2026, where scammers explicitly solicited processing fees. The Federal Trade Commission issued a consumer alert in March 2026 specifically about how to handle unexpected calls regarding unclaimed funds—a warning they wouldn’t need to issue if this confusion wasn’t widespread. The alert came in response to the volume of complaints they were receiving.
Table of Contents
- Why Do Scammers Target People With Unclaimed Property Claims?
- How Scammers Build Trust and Extract Money
- Real-World Examples of Unclaimed Property Scams in Action
- How to Verify Legitimate Unclaimed Property Claims
- Red Flags That Indicate You’re Dealing With a Scam
- What Legitimate State Unclaimed Property Notices Actually Look Like
- The Evolving Threat Landscape for Unclaimed Property Fraud
- Conclusion
Why Do Scammers Target People With Unclaimed Property Claims?
The unclaimed property market is genuinely valuable, which is precisely why scammers have chosen it as a hunting ground. State treasurers hold billions in dormant accounts, uncashed checks, security deposits, and other funds that legally belong to citizens. When states conduct legitimate outreach campaigns or when citizens search their state’s unclaimed property database, scammers monitor this activity and strike. They know that if you’re looking for unclaimed money, you’re already motivated—and motivation makes people vulnerable to convincing deception. Scammers exploit the legitimacy of the unclaimed property system itself.
They use official-sounding names, reference real state programs, and follow the patterns of genuine notices. Many scammers operate from call centers where they can make hundreds of calls daily, targeting different states and age groups. Some have even managed to make their caller ID display official government numbers, a tactic called “spoofing” that makes their calls appear legitimate when they arrive on your phone. The core issue is that the unclaimed property system, while real and helpful, requires citizens to understand a complex process. most people don’t know the rules—that legitimate state agencies never call you first, never ask for upfront fees, and never request payment via gift cards or wire transfers. Scammers know this knowledge gap exists and exploit it ruthlessly.
How Scammers Build Trust and Extract Money
Scammers use psychological manipulation that plays on several human tendencies: the desire for easy money, the trust we place in authority figures, and the assumption that official-sounding communication must be real. A typical scam follows a predictable pattern. The victim receives a call from someone claiming to work for the state comptroller’s office, the state treasurer, or a state revenue department. The caller might mention a specific unclaimed account or a vague reference to “funds in your name.” They create urgency by saying the funds will expire soon or be forfeited to the state if not claimed immediately. Then comes the fee request. The scammer explains that a “processing fee,” “administrative fee,” or “retrieval fee” is required to release the funds—usually $50 to $300. They may offer to accept credit card information over the phone, direct bank transfers, or wire transfers through services like Western Union.
Some victims have even been instructed to purchase iTunes or Google Play cards, which can be redeemed for cash with no recourse. The critical point is that legitimate state agencies absolutely never charge upfront fees to claim unclaimed property—it’s against the law. The state holds your money; it doesn’t cost you anything to retrieve it. A limitation to understand: even sophisticated consumers can fall for these scams. The Better Business Bureau and FTC reports show that victims aren’t simply gullible—they’re often victims of high-quality impersonation and persuasion tactics. One man in his 60s reported losing $1,500 to an unclaimed property scam, despite being financially literate and regularly cautious about fraud. This vulnerability is why general warnings to “just be careful” fail to protect people.
Real-World Examples of Unclaimed Property Scams in Action
A woman in Florida received a call in 2025 from someone claiming to represent Florida’s Department of Financial Services. The caller had her name and mentioned a specific account associated with a company where she‘d worked 15 years earlier. He asked her to verify her Social Security number (which he already had) and then requested a $150 processing fee via credit card. Desperate for the promised $4,200 in unclaimed wages, she paid—and never received the funds. When she called the actual Florida Department of Financial Services to ask about the claim, she learned the truth: no such claim existed in their system, and the state’s legitimate unclaimed property office never initiates contact with citizens. Another case involved a retiree who received an official-looking letter in the mail, complete with state letterhead and an official address.
The letter claimed he had unclaimed funds from a tax refund and included a phone number to call. When he called, the representative on the other end was exceptionally professional, had access to his real name, and quickly transferred him to a “claims specialist” who walked him through a $200 fee to process the claim. The letter turned out to be a sophisticated forgery; the phone number routed to a scam center operating from overseas. What these examples have in common is that scammers aren’t working with obviously fake information. They’re using real details, official-sounding language, and the legitimacy of the unclaimed property system itself as cover. This is what makes the confusion so understandable and so widespread.
How to Verify Legitimate Unclaimed Property Claims
The fundamental rule is simple but essential: legitimate state agencies never contact you first about unclaimed property, and they never charge fees. If you think you might have unclaimed funds, you should always initiate the search yourself through your state’s official website. Each state has a dedicated unclaimed property program, usually managed by the state treasurer or comptroller’s office. You can find the legitimate website by going directly to your state’s main government portal and searching for “unclaimed property” or “unclaimed funds.” When you search a legitimate state database, you’ll notice that no fee is requested—ever. You’ll enter your name and other identifying information, and if funds match your profile, the state will explain the process for claiming them. The entire process is free.
If anyone at any point asks you for money—whether it’s framed as a fee, deposit, or tax payment—you’re dealing with a scam. The comparison here is important: legitimate unclaimed property processes are completely passive from the state’s perspective. The government holds your money and releases it when you claim it. There’s nothing for you to pay for. If you do receive unsolicited contact about unclaimed funds, hang up or delete the message and independently verify the claim through your state’s website. Call the state office directly using the phone number listed on their official website, never a number provided by the caller or the unsolicited communication.
Red Flags That Indicate You’re Dealing With a Scam
Several specific warning signs should immediately alert you that you’re dealing with a scammer. The most obvious is a request for upfront payment of any kind. Legitimate state agencies do not ask for processing fees, retrieval fees, administrative fees, or any other charges before releasing unclaimed property. This is not a gray area—it’s a clear legal rule. If someone asks for money first, it’s a scam. Another red flag is pressure and urgency. Scammers create artificial deadlines, claiming that funds will expire soon, be forfeited to the state, or become unavailable if not claimed immediately.
In reality, unclaimed property doesn’t expire. Your funds will remain in the state’s custody indefinitely, and you can claim them at any time. If a caller is pushing you to act quickly or making threats about forfeiture, you’re dealing with a fraudster. A final warning: be suspicious of unsolicited contact in any form—calls, emails, letters, or text messages claiming to represent state agencies about unclaimed funds. The limitation here is that scammers can make their communication look extremely official. They can spoof caller IDs, forge letterheads, and mimic the exact language of legitimate agencies. Your best defense isn’t trying to spot the fake—it’s understanding that legitimate agencies don’t contact you first, period. This removes any need to evaluate the quality of the communication.
What Legitimate State Unclaimed Property Notices Actually Look Like
When state agencies do communicate about unclaimed property—usually in response to a citizen’s inquiry or search—their communication has specific characteristics. A legitimate notice will clearly explain what funds have been identified, include documentation about the source (like an old employer or utility company), and provide straightforward instructions for claiming the money. There will be no fees mentioned, no urgency language, and no requests for personal information beyond what’s necessary to verify your identity.
A genuine state response might include a claim form, instructions for how to submit it (usually by mail with documentation), and an explanation of how long processing will take. Some states now offer online claims processes where you can submit documents electronically and track your claim status. The communication will always come with official contact information for the state office so you can follow up with questions. Most importantly, a legitimate state notice will never ask you to pay anything to move forward.
The Evolving Threat Landscape for Unclaimed Property Fraud
As technology changes, so do the tactics used by scammers. One emerging concern relates to artificial intelligence: 82% of Americans now believe that AI is making scams harder to spot, and there’s legitimate reason for this worry. AI-powered voice synthesis can now generate convincing audio of government officials, and AI-assisted copywriting can create nearly perfect forgeries of official communications. This means that the threat of unclaimed property scams is likely to intensify rather than diminish in the coming years.
The National Association of Unclaimed Property Administrators (NAUPA) has acknowledged this problem directly. One official stated, “You get to the point where people don’t know what’s real and what’s not real”—a statement that captures the current reality. As scams become more sophisticated, public awareness becomes more important. States and federal agencies like the FTC are increasing their educational efforts, but the responsibility ultimately rests with citizens to understand the rules and protect themselves.
Conclusion
The confusion between unclaimed property scams and legitimate state notices is a real and growing problem. While we know that over 800 consumers reported these scams to the Better Business Bureau in 2025-2026 alone, the actual number of victims is likely far higher, as many people never report fraud. The good news is that the rules for identifying legitimate claims are straightforward and absolute: legitimate state agencies never charge fees, never contact you first, and never create artificial urgency. Understanding these three rules puts you in a position to protect yourself, regardless of how sophisticated a scammer’s approach becomes.
If you believe you have unclaimed funds, take control of the process yourself. Visit your state’s official website directly, search your name in the legitimate database, and claim any funds you find—all for free. If someone contacts you about unclaimed funds, treat it as a scam unless you independently verify the claim through official channels. Your awareness and skepticism are your strongest defenses against the growing wave of unclaimed property fraud.