The frustrating part about unclaimed property scams is that the underlying program is real. California really does hold roughly $14 billion in unclaimed funds. Roughly one in seven residents really does have something waiting. That sliver of truth is what makes the scams convincing.
If you have received a text, email, postcard, or phone call about unclaimed money in your name, it might be legitimate. It might also be fraud. Here is how to tell the difference.
Red flag #1: Unsolicited contact with urgency
A real letter from the California State Controller’s Office (SCO) is a possibility. The SCO does mail annual notices to property owners before assets are turned over, and they occasionally mail follow-ups afterward. Those letters are calm, informational, and tell you to search at the official state website. If you received a letter and want a step-by-step way to verify it, see our guide on what to do when you get a letter about unclaimed property.
A scam typically arrives with pressure. Phrases like “final notice,” “claim period expiring,” “respond within 48 hours,” or “funds will be forfeited” are designed to short-circuit your judgment. A legitimate California unclaimed property claim has no deadline. There is no expiration. Whatever rush a caller or text is creating is artificial.
Red flag #2: Requests for upfront fees
The state never charges to return your own property. A licensed asset recovery service in California also never charges upfront. State law caps recovery fees at 10 percent of the recovered amount, paid only after the funds are recovered. Anyone asking for a “release fee,” “processing fee,” “tax payment,” “verification fee,” or “insurance deposit” before you can receive your property is running a scam.
This applies whether the request comes from a supposed government agent, a “lawyer,” a “bank,” or a “tax authority.” Real claims do not work that way.
Red flag #3: Requests for sensitive information through unverified channels
The SCO will never call, text, or email you out of the blue asking for your Social Security Number, bank account credentials, or a wire transfer. Communications from the actual state agency direct you to claimit.ca.gov, where you initiate everything on your end.
If a text message says “click here to claim your $4,200 from California Unclaimed Property,” do not click. Open a new browser tab, type claimit.ca.gov directly, and search your name. If the property is real, you will find it on the state’s own site.
Red flag #4: Foreign “long-lost relative” inheritance pitches
A very common variant is a letter or email claiming you are the heir of a wealthy stranger who shares your last name, often from another country. The scammer says they are an attorney, executor, or banker who needs your details and a small payment to release the inheritance.
There is no inheritance. The variations are endless (Nigerian prince, Spanish lottery, British solicitor) and they have evolved into more polished versions targeting Californians specifically. If you did not know the person, you are not their heir.
Red flag #5: Fee structures above 10 percent
California law is specific. A licensed asset recovery service or “heir finder” cannot charge more than 10 percent of the property’s value, period. If you are offered a contract that splits the recovery 25/75, 50/50, or “we keep the first $5,000 and you get the rest,” you are being asked to sign something the state does not allow. Walk away.
How to verify any communication
When in doubt, do these three things:
- Go directly to claimit.ca.gov and search your name yourself. If the property is real, it is searchable on the official site.
- Call the SCO at (800) 992-4647 during business hours. The Unclaimed Property Division will confirm whether anything is on file in your name and whether a particular notice came from them.
- Check the business license of anyone offering to help. California asset recovery services are licensed by the state. The license number should appear on the company’s website, written materials, and any contract. You can look up the business with the appropriate state agency to confirm it is real and in good standing.
What to do if you have been targeted
If you think you received a scam communication, do not engage. Do not click, do not call back the number provided, do not send documents. Report it to the California Attorney General’s office at oag.ca.gov, the Federal Trade Commission at reportfraud.ftc.gov, and the SCO directly. If you already sent money or information, contact your bank immediately and consider placing a fraud alert on your credit reports.
The unclaimed property program in California exists to return your money to you, with no strings, no fees, and no deadline. Anything that contradicts those three facts is worth a second look before you act.
