Got a Letter About Unclaimed Life Insurance Money? Why It’s Probably a Scam

Consumers across the U.S. are being warned about a growing scam involving fake letters that claim recipients are entitled to unclaimed life insurance benefits from a deceased person with the same last name.

While unclaimed property is real and managed through official government agencies, scammers are using this concept to trick people into providing personal information or sending money.

Worth reading: The State By State Guide to Unclaimed Assets

What the FTC says about these letters

On July 9, 2026, the Federal Trade Commission (FTC) issued a consumer alert about the scam.

According to the FTC, the letters falsely claim that the recipient can share in unclaimed life insurance proceeds from a deceased person. The letters often promise to divide the money among the recipient, charitable organizations, and a law firm.

The FTC says these letters are not from legitimate attorneys and are part of a fraudulent scheme designed to steal your money or personal information.
 

How to spot a scam letter

Watch for these red flags:

• Unsolicited contact: You receive a letter out of the blue claiming you’re entitled to money you didn’t know existed.

• Same last name trick: The letter says a deceased person with your surname left behind a large life insurance payout or inheritance.

• Urgency or fees: You’re told to act quickly, call a number, scan a QR code, or pay a “processing fee” or “transfer tax” to release the funds.

• Request for sensitive info: The letter asks for your full Social Security number, bank account details, or other personal data before you’ve verified anything.

• Suspicious contact info: The sender uses a public email address (like Gmail or Yahoo) or a website that doesn’t end in .gov or an official state treasury domain.
   

How to safely search for real unclaimed money

Unclaimed property programs are 100% legitimate and run by every U.S. state treasury. Here’s how to search safely:

• Start with official portals: Use unclaimed.org (the National Association of Unclaimed Property Administrators) or your state treasurer’s official website.

• Florida residents: Visit www.fltreasurehunt.gov to search for legitimate unclaimed property.

• Other states: Search official state unclaimed property programs through www.usa.gov/unclaimed-money.

• No fees required: Legitimate state treasurers and the IRS do not charge citizens to search for or claim their own property. If you’re asked to pay a fee, it’s a scam.
   

What to do if you receive a suspicious letter

If you get one of these fake letters:

• Do not respond. Never call the phone number, email the sender, or scan QR codes provided in unsolicited letters.

• Keep your information private. Never share financial details or personal information with anyone promising large financial rewards out of the blue.

• Report it. Help federal authorities track and fight fraud by reporting deceptive letters directly to the FTC at ReportFraud.ftc.gov.

• Contact local consumer protection. For additional information or assistance, reach out to your county consumer protection office. In Orange County, email [email protected].
   

Bottom line

Real unclaimed property exists, but scammers are using fake letters about life insurance money to steal your data and cash.

Always verify claims through official state websites, never pay upfront fees, and report suspicious mail to the FTC.

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