Guide · 03

The scams and the salvageable.

Reading time · 5 minutes

Wherever there is money going unclaimed, there are people trying to get it before you do. The unclaimed property space has its share of outright frauds, but also a larger population of legal- but-exploitative recovery firms that take a percentage of money you could have gotten yourself for free.

Red flags of an outright scam

  • Upfront fees to "release" your money. No legitimate state or firm requires an upfront fee. The state charges nothing; ethical recovery firms only take a percentage on contingency.
  • Requests for your SSN by email or text. The state treasurer will never ask for sensitive information over unsecured channels.
  • Claims of "government fees" or "tax advances" required to release funds. This is always a scam. States don't charge fees, and you pay taxes only after receiving the money.
  • Fake urgency. State-held unclaimed property has no expiration in most states. "Claim within 48 hours" messaging is pressure-selling.
  • A phone number that isn't on the state treasurer's official website. Always cross-check against the state's .gov portal.

Recovery firms — legal but often unnecessary

"Asset locators" or recovery firms cross-reference public unclaimed property lists with public records, identify likely matches, and contact you offering to claim the money for a fee. They are not scams — they are a legal industry — but they are usually providing a service you could do yourself in under an hour.

Most states cap recovery firm fees between 10% and 30%, with several capping at 10% (Washington caps at 5%). Before signing anything, check:

  1. The state treasurer's website for the same property
  2. Your state's fee cap regulation
  3. The firm's registration with the state
  4. The actual amount they're quoting (many letters disclose only a range)

The legitimate exception: very complex estate claims involving multiple heirs, or claims for old stock shares that have split, merged, or renamed over decades. In these cases, a good firm earns its fee.

How to verify anything

The bright-line rule: if you received a letter, email, or call about unclaimed money, do not respond to it directly. Go to the state treasurer's official .gov website, search your name yourself, and proceed only through that portal. The same database they used is public and free.