Unpaid checks, tax refunds, real estate properties being passed down to relatives or others without their knowledge. These scenarios are far more common than what you think. This fact has given rise to a form of scam: the abandoned property advisor scam.
Today, dishonest people employ various tactics to convince others that unclaimed property awaits them. In this post, we will share helpful tips and warning signs to learn how to identify these scams, while also explaining which sort of abandoned property advisors companies you need to stay away from.
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What is Abandoned Property Advisors LLC?
Abandoned properties scams take place whenever a person receives an email that was allegedly sent from a company named Abandoned Property Advisors LLC (APA). APA is a somewhat reputable company that has a total of three decades worth of experience as experts in the field of abandoned property compliance.
Besides their knowledge on handling unclaimed properties, APA also has experience working with:
- Major corporations.
- Mutual fund companies.
- Brokerage firms.
- Banks.
- Insurance providers.
- Other financial institutions.
According to the Better Business Bureau, a private company responsible for ranking other companies in the market, the company has received a ranking of B+, which means it’s got a mixed view from customers, both good and bad.
What is the Problem?
Many scammers have successfully tricked people into providing personal information by sending emails that supposedly come from this company, which is a lie they create.
What Is An “Unclaimed Property”?
To understand how scammers steal people’s personal information and money from people, it’s important for you to understand what the Law, at least in the United States of America, defines as abandoned property.
According to the Legal Information Institute, an unclaimed property is defined as: “financial assets that have not been used or accessed by their rightful owner for a certain length of time, often three years or more.” The site also mentions that, in the state of California, real estate is not considered unclaimed property.
Some of the most common forms of unclaimed property are the following:
- Dormant bank accounts and the contents of safe deposit boxes.
- Stocks, bonds, mutual funds, and dividend payments.
- Unclaimed cashier’s checks and money orders that were never cashed.
- Certificates of deposit (CDs) that have matured.
- Insurance policies that have either terminated or reached maturity.
- Inherited estates.
- Mineral rights and royalty payments.
- Trust funds and money held in escrow.
- Deposits made for utility accounts.
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What Are The Different Types of Abandoned Properties?
Abandoned properties don’t have to necessarily be material objects whose original owners have given up their rights over them a long time ago. Abandoned properties can either be tangible and intangible, such as:
- Tangible Abandoned Properties: Physical assets such as real estate (outside the state of California), land, and safe deposit boxes.
- Intangible Abandoned Properties: Non-physical assets such as life insurance policies, unpaid wages, and securities held in financial accounts, such as stocks, bonds, and mutual funds.
Learn how to protect yourself from any life insurance fraud attempt.
5 Ways to Identify a Possible Abandoned Property Advisors Scam
Despite the fact APA is a legitimate company that has gained a somewhat positive reputation, many dishonest people will make themselves pass as members of this company. Here are some tips to learn how to identify a fake email:
1. Unsolicited Letters
One of the most common tactics used by scammers is sending letters claiming you have unclaimed property. Many unfortunate victims have reported receiving these surprise emails, which immediately raises suspicion.
- Tip: Receiving a notice of unclaimed property from a company you’ve never contacted is a common trick used by scammers to get in contact and take away information.
2. Requests for Personal Information
Typically, legitimate companies, like the actual APA, won’t require personal information from the first email. Some personal details they may ask for are: Social Security number (SSN), ID copies, address, bank account information or any other sensitive information.
- Tip: If you’re being asked for this kind of data during the first contact, it’s wise to step back and verify the email and/or the company’s authenticity before sharing anything.
Sharing information online about yourself makes the risk of data theft even higher. Learn more about how to protect yourself from it.
3. Percentage-Based Fees
Despite being a legitimate company, APA reportedly charges its customers with a 10-30% fee of any recovered property, a practice that many consumers find excessive. Percentage-based fees are not uncommon in unclaimed property recovery, but many state-run programs allow individuals to recover their property for free.
- Tip: Be cautious if a company insists on charging you a significant portion of your recovered assets, especially when other free resources are available.
4. Grammatical Mistakes And/Or Inconsistencies
A trait which describes fake emails that try to deceive people is the lack of good punctuation, inconsistencies, unprofessional language and odd sentence structures that give away their lack of professionalism.
- Tip: These errors can be a sign that the company is not legitimate. Always be on the lookout for these subtle signs of fraud.
5. Sense of Urgency
Scammers often create a false sense of urgency to pressure their victims into acting quickly, with sentences that include made up deadlines.
- Tip: Legitimate companies typically don’t pressure clients in this way, especially if you haven’t reached out or made contact with said companies. If you feel rushed or pushed to make a quick decision, take a moment to verify the situation before proceeding.
Legal Ways to Find Unclaimed Properties from the Government
Despite the many dishonest companies and people who want to commit fraud, there are several official government entities capable of helping you find actual abandoned/unclaimed properties. These are:
1. Employers:
- Unpaid Wages: If an employer owes you back wages, you can check the Department of Labor’s database to see if any payments are due to you. It’s a tool that helps employees recover wages that may have gone unclaimed due to employer oversight.
- Pensions from Former Employers: For those who have worked for companies offering pension plans, the Pension Benefit Guaranty Corporation (PBGC) provides a search tool to locate any unclaimed pensions.
2. Unclaimed Insurance:
- Veteran Affairs Life Insurance Funds: Veterans can search the Department of VA database to locate and make sure that beneficiaries of veterans’ insurance policies receive their payments they deserve.
- FHA Insurance Refunds: If you held a mortgage insured by the Federal Housing Administration (FHA), you may be eligible for a refund.
3. Taxes:
- Tax Refunds: Use the IRS “Where’s My Refund?” tool to track any unclaimed tax refunds that may be owed to you.
- Stimulus Checks: If you missed out on any of the Economic Impact Payments from 2020 or 2021, you may need to file or amend your tax return. You may check the IRS guidelines for claiming the recovery rebate credit.
Protect Yourself From Scam Attempts And Reclaim Actual Abandoned Properties With CDN
According to a report published in 2020 by the National Association of Unclaimed Property Administrators, approximately 1 in 10 Americans have unclaimed property. At the same time, this gives rise to fake companies willing to cheat people out of their money.
At Cryptoscam Defense Network (CDN), we believe in the importance of teaching you how to detect these scam attacks and to find your way into the world of legitimate claims and safe recovery.
Frequently Asked Questions (FAQ) about Abandoned Property Advisors Scam
Is Abandoned Property Advisors legitimate?
Somewhat. APA is a somewhat reputable company which has BBB accreditation, some concerns arise from the high fees they ask for their services, which makes their legitimacy questionable.
Can I Recover My Own Unclaimed Property For Free?
Yes, you can. State-run programs allow you to claim your lost assets, or assets passed down to you from relatives, without any fees.
Is It Safe To Provide Personal Information To Abandoned Property Advisors?
Be careful. Sharing sensitive data (full name, social security number, address, bank account information) with any company, especially if its legitimacy is unclear, could put you at risk of identity theft.
What Should I Do If I Receive An Unsolicited Letter From Abandoned Property Advisors?
First, verify if it’s a company you have had contact with before. If it isn’t, proceed to use the tips provided in this post to identify any hints that clears the email’s legitimacy. Avoid providing any sensitive information or paying anything upfront for services you don’t really know whether you need or not.
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