Every year, thousands of people fall victim to inheritance scams, losing money and personal data to fraudsters posing as legal professionals. These scammers promise life-changing inheritances from unknown relatives or wealthy benefactors, only to disappear after obtaining processing fees or sensitive information.
The problem is bigger than many realize. In fact, according to AARP, the Federal Trade Commission (FTC) recorded 2,762 cases of foreign money and inheritance scams. In this post, you’ll learn what inheritance scams are, how they work, the warning signs to watch for, and the best ways to protect yourself.
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What Are Inheritance Scams?
Inheritance scams are a type of fraud where scammers trick people into believing they are about to receive a large sum of money from a distant relative or a wealthy stranger. Pretending to be lawyers, bankers, or government officials, these scammers create convincing stories to seem legitimate or real.
The goal is simple: to make you pay money or share personal information in exchange for an inheritance that doesn’t exist. According to the 2024 Visa Report, 15% of adults have been targeted by inheritance scams, with many losing thousands of dollars before realizing it’s all a scam.
How Do Inheritance Scams Work?
Inheritance scams follow a well-planned routine designed to make victims believe they are about to receive a life-changing sum of money. Here’s how these scams usually begin:
1. The Initial Contact
Scammers often reach out via email, phone, or even social media. They may claim to be a lawyer, banker, or government official handling a deceased relative’s estate or benefactor’s estate. Their messages usually include convincing details about a large inheritance waiting to be claimed.
2. Creating a Sense of Urgency
To pressure victims into acting quickly, scammers typically emphasize that the inheritance must be claimed within a short timeframe. They typically claim the funds will be lost or given to someone else if immediate action isn’t taken.
3. Requesting Upfront Fees
One of the most common tactics used in inheritance scams is asking for upfront fees to cover administrative costs, taxes, or legal expenses. These fees can range from a few hundred to several thousand dollars, depending on the scam.
4. Asking Personal Information
Some scammers may ask for sensitive personal information, such as your Social Security number, bank account details, or copies of identification documents. This data can be used for identity theft or other fraudulent activities.
5. Disappearing After Payment
Once the victim pays the requested fees or provides personal information, the scammer abruptly ends all communication. The promised inheritance never materializes, leaving the victim to deal with financial and emotional consequences.
How You Can Identify Inheritance Scam: Warning Signs
The way inheritance scams work often reveals clear warning signs. These scams follow predictable patterns, making it easier to spot the signs if you know what to look for.
Before you respond to any unexpected message or phishing email, take a moment to consider these common warning signs:
- Vague or Inconsistent Details: Inheritance scams often involve vague or inconsistent information about the deceased, the estate, or the legal process. If the details seem unclear or contradictory, it’s a strong sign of a scam.
- Spelling and Grammar Mistakes: Scam messages are often poorly written, with typos, grammatical errors, and awkward wording. Even official-looking letterheads and logos may appear slightly off, which is a big scam sign.
- Suspicious Email Domains: If the email comes from a public domain like Yahoo, Gmail, or Outlook, it’s likely a scam. Legitimate law firms, banks, and government agencies use professional domain names for security purposes.
- Unrealistic Inheritance Amounts: If someone tells you that you’ve inherited millions of dollars from a distant relative or a wealthy stranger, approach with caution. Scammers use large sums to grab attention and pressure you into acting quickly.
- Requests for Personal Information or Payments: Scammers almost always ask for bank details, identification documents, or upfront payments for taxes or legal fees. No legitimate inheritance requires advance payments or personal data upfront.
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What to Do If You’ve Been Scammed by Inheritance Scams?
If you’ve shared personal information or were involved in a fund transfer scheme related to an inheritance scam, acting quickly can help minimize the damage. Scammers rely on delays to cover their tracks, so time is critical. Here’s what you should do immediately:
1. Contact Your Bank Immediately
If you’ve sent money or shared your bank account details, always contact your bank first, as they may be able to stop the transaction, freeze your account, or help recover your funds. This step is crucial to avoid falling for recovery frauds, where scammers show up as “helpers” offering to recover your lost money for an additional fee.
2. Monitor Your Accounts
Keep a close eye on your bank statements, credit cards, and credit reports for any suspicious activity. If you notice unauthorized transactions, report them to your bank or credit card provider immediately.
3. Report the Scam
Reporting the scam can help authorities track down fraudsters and prevent others from being targeted. Depending on your location, report the scam to:
- The Federal Trade Commission (FTC) in the U.S.
- Action Fraud in the UK.
- Your country’s consumer protection agency.
4. Protect Your Identity
If you share personal information like your Social Security number or ID details, consider placing a fraud alert on your credit file to prevent identity theft.
5. Seek Support
Falling for a scam can be emotionally draining. Reach out to friends, family, or support groups to help you cope with the situation and regain peace of mind.
How to Protect Yourself from Inheritance Scams?
Now that you know how inheritance scams work and the warning signs to watch for, it’s time to focus on prevention. Here are some simple steps to keep yourself safe:
1. Verify the Claim
If you receive an unexpected inheritance notification, don’t rush to respond. Take time to verify its legitimacy by researching the deceased person, the law firm, or the organization mentioned. If the details don’t add up, it’s likely a scam. Consulting a trusted lawyer can also help before taking any action.
2. Never Pay Upfront Fees
A legitimate inheritance will never require advance payments for taxes, legal fees, or bank charges. Any necessary costs are usually deducted directly from the inheritance. If someone asks for money upfront, it’s a scam.
3. Protect Your Personal Information
Never share your Social Security number, bank details, or copies of identification documents with someone you don’t know. Scammers can use this information for identity theft and fraudulent transactions.
4. Be Suspicious of Unsolicited Contact
If you receive a random email, call, or letter about an inheritance, don’t trust it immediately. Scammers often send mass messages, hoping someone will take the offer. Real lawyers or financial institutions won’t reach out this way.
5. Research Email and Website Details
If someone claims to be a lawyer or banker, verify their credentials. Check their email domain and website—real professionals use official business emails, not free services like Gmail or Yahoo. You can also search online for scam reports associated with their name.
Real-Life Inheritance Scam Stories: How Victims Were Targeted
These real-life cases reveal how inheritance scams operate and the devastating impact they have on victims. Authorities consistently warn that if an unexpected inheritance sounds too good to be true, it probably is.
1. Suspicious Letter Claims $11 Million—A Classic Inheritance Scam
A woman from Central Florida received a fraudulent letter claiming she was entitled to inherit $11 million from an unknown relative, requesting an upfront payment. An investigation by WESH 2 revealed the supposed Canadian law firm didn’t exist, and the “lawyers” featured were images stolen from a legitimate firm in Michigan.
The Federal Trade Commission (FTC) warns against such scams, including a case where six scammers from Nigeria defrauded Americans of over $6 million. The FTC strongly advises never to send money or personal information to strangers offering unexpected inheritances.
2. Scammer Poses as Bank Representative, Steals $1.6M Inheritance
According to ABC, Harriet Spring lost $1.6 million from her late mother’s inheritance after months of phone calls from a scammer who pretended as an ING Bank representative. The scammer gained her trust and convinced her to transfer the funds to a Westpac account, where the money was quickly withdrawn and became untraceable.
Harriet is now calling for stronger banking protections, supporting a UK-style compensation model for scam victims. Although the Australian government plans new fraud prevention measures, it has rejected mandatory reimbursements. Banks say they have strong protections, but victims believe more accountability is needed.
Fight Inheritance Scams with Cryptoscam Defense Network
Inheritance scams exploit trust and vulnerability, using deception to trick people into giving up their money or personal data. These scams continue because they play on emotions like hope, urgency, and fear of missing out on financial security.
At Cryptoscam Defense Network (CDN), we’re here to help you spot and avoid fraudulent schemes. We offer expert resources, practical tips, and a supportive community where you can learn from real experiences and stay updated on the latest scam prevention strategies.
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Fraud recovery is hard, but you don’t have to do it alone. Our community is here to help you share, learn, and protect yourself from future frauds.
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- Community support: Share your experiences with people who understand.
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Frequently Asked Questions (FAQs) About Inheritance Scams
Who Should I Report an Inheritance Scam To?
You should report an inheritance scam to the appropriate authorities:
- In the U.S.: The Federal Trade Commission (FTC) at reportfraud.ftc.gov.
- In the UK: Action Fraud at actionfraud.police.uk
- Globally: Your country’s consumer protection agency, police department, or financial regulatory body.
Do Real Inheritances Require Upfront Payments?
No, legitimate inheritances never require upfront payments. All legal costs, taxes, or administrative fees are usually deducted directly from the inheritance. Real estate transfers follow strict legal procedures, and payments are handled by lawyers, banks, or executors—not the heirs.
Can Scammers Steal My Identity?
Yes, scammers can steal your identity. They often request sensitive personal information, such as your Social Security number, passport details, bank account information, or home address. Once they have this data, they can commit identity theft, open accounts in your name, or make fraudulent transactions.
Photos via Freepik.
