The FTC is warning consumers about a resurgence of a mail scam claiming recipients are entitled to millions of dollars in unclaimed life insurance proceeds or an inheritance from someone with the same last name.
The letters are not from legitimate law firms, but from scammers trying to steal victims' personal information, banking details and, ultimately, their money.
Consumers should never respond to the letters and should instead report them to the Federal Trade Commission (FTC) and use official government websites to search for legitimate unclaimed property.
An old inheritance scam is making the rounds again, prompting the Federal Trade Commission (FTC) to warn consumers not to believe letters claiming they are the beneficiary of a multimillion-dollar life insurance policy.
The FTC issued a consumer alert after receiving reports from people who received official-looking letters from supposed law firms claiming that a deceased client with the same last name had left behind an unclaimed life insurance policy worth millions of dollars.
According to the letters, no heirs have been found, and the recipient is offered a chance to share the proceeds with the law firm and one or more charitable organizations.
The catch: none of it is real.
"This is not a letter from a lawyer — it's from a scammer," the FTC said in its alert. The agency says the life insurance policy, the deceased client, and the promised inheritance simply do not exist.
How the scam works
The scheme typically begins with a letter delivered through the mail rather than email, making it appear more credible.
The sender claims to represent the estate of someone who died without heirs and says the recipient was identified because they share the same surname as the deceased. The letter often suggests there is limited time to claim the money before it is turned over to the government.
The scammer's goal is to get recipients to respond.
Once contact is established, the fraudsters attempt to collect sensitive personal information, such as Social Security numbers, bank account information, and copies of identification documents. Victims may also be asked to pay bogus legal fees, taxes, or processing charges before the supposed inheritance can be released.
Unclaimed property is real
The FTC emphasizes that unclaimed property is a legitimate program administered by state governments. However, government agencies do not recruit random people to claim someone else's life insurance proceeds because they share a last name.
Consumers looking for legitimate unclaimed money should use official government resources. Florida residents can search the state's unclaimed property database through Florida Treasure Hunt, while people who have lived in multiple states can search official state programs through USA.gov's unclaimed money portal.
How to protect yourself
The FTC offers several tips for avoiding the scam:
Don't respond to unsolicited letters promising large inheritances or life insurance payouts.
Never provide personal or financial information to strangers who contact you unexpectedly.
Never send money to pay "fees," "taxes" or "processing costs" in order to receive an inheritance.
Share information about the scam with friends and family, especially older adults who may be targeted.
Report suspicious letters to the FTC at ReportFraud.ftc.gov.
Officials say consumers should be especially skeptical of any unexpected offer that promises millions of dollars in exchange for little more than a signature or a willingness to keep the arrangement confidential.
As the FTC notes, if an unsolicited letter promises a life-changing windfall from someone you've never met, it's almost certainly too good to be true.