What to look for in Inheritance Scams

Imagine receiving an unexpected email informing you that a long-lost relative has left you a substantial inheritance. It seems like a dream come true—until the sender asks for your personal information and a hefty upfront payment to claim your newfound wealth. 

This is the harsh reality of inheritance scams, a growing threat targeting baby boomers across the United States.

In 2022 alone, the Federal Trade Commission (FTC) received over 2,700 reports of inheritance scams, a significant increase from the previous year. With scammers becoming more sophisticated in their approaches, it’s crucial for older adults to stay informed and vigilant.

Inheritance scams take many forms, from the classic bank executor scam to the increasingly common romance inheritance scam. Fraudsters use various tactics to manipulate their victims, often preying on their emotions and exploiting their trust.

Don’t let inheritance scams rob you of your golden years. Arm yourself with knowledge and take control of your financial future. 

Understanding the Anatomy of an Inheritance Scam

At their core, inheritance scams follow a predictable pattern. The scheme usually begins with an unexpected email, letter, or even a phone call informing you that a distant relative, often someone you’ve never heard of, has passed away and left you a substantial sum of money. The scammer, posing as a bank executive, lawyer, or government official, will claim you are the rightful heir to this fortune.

However, there’s always a catch. To claim your supposed inheritance, the scammer will insist that you provide sensitive personal information, such as your bank account details, Social Security, phone number, or passport copy. Sometimes, they may even demand that you pay an upfront fee to cover alleged taxes, legal expenses, or administrative costs.

The scammer’s goal is either identity theft using the personal information you provide or tricking you into sending them money, which they will pocket while you’re left waiting for an inheritance that never materializes.

Shockingly, inheritance scams are more common than you might think. The FTC estimates that fraud accounts for over 8.8 billion dollars in losses.

As scammers become more sophisticated in their methods, it is essential to stay informed about the various types of inheritance scams and the red flags to watch out for.

Familiarizing Yourself with Common Inheritance Scams

Inheritance scams come in various guises, each designed to exploit your trust and manipulate your emotions. By familiarizing yourself with the most common types of inheritance scams, you’ll be better equipped to identify and avoid them. Let’s take a closer look at two of the most prevalent schemes:

The Bank Executor Scam

In this scenario, you receive an email or letter allegedly from a bank executive or lawyer claiming that a wealthy individual in a foreign country has passed away without any known heirs. The scammer will assert that you are a distant relative of the deceased and are entitled to a substantial inheritance. They may even offer to present you as the next of kin in exchange for a percentage of the estate.

The Romance Inheritance Scam

In this insidious scheme, a scammer cultivates a romantic relationship with you online, often without ever meeting in person. As the relationship progresses, they claim to be the heir to a significant fortune but lack the funds to pay the necessary legal fees and taxes. They will then ask you, their trusted partner, to cover these expenses, promising to share the inheritance once it’s released.

Other common inheritance scams include the life insurance scheme, in which scammers claim you’re the beneficiary of a recently deceased person’s policy, and the fake estate lawyer scam, in which fraudsters pose as attorneys handling a wealthy individual’s estate.

How to Identify an Inheritance Scam

Inheritance fraud often shares common characteristics that should raise red flags. Keep an eye out for these warning signs:

• Unsolicited contact about an unexpected inheritance from an unknown relative.
• Email or letter riddled with typos, grammatical errors, and unprofessional language.
• Use of public domain email addresses, such as Gmail or Yahoo, instead of official business email accounts.
• Requests for sensitive personal information, like bank account details, Social Security numbers, or copies of identity documents.
• Demands for upfront payment of taxes, legal fees, or other expenses before the inheritance can be released.
• High-pressure tactics urging you to act quickly and keep the matter confidential.

If you encounter any of these red flags, proceed with extreme caution. Legitimate inheritances do not require beneficiaries to pay upfront fees or provide sensitive personal information.

Practical Tips to Avoid Falling Victim

Protecting yourself from inheritance fraud starts with a healthy dose of skepticism. If an offer seems too good to be true, it probably is. Here are some practical tips to help you stay safe:

• Be wary of unsolicited offers of inheritance, especially from unknown sources.
• Verify the legitimacy of any inheritance claim by researching the alleged lawyer or estate online and consulting with trusted family members.
• Never send money or personal information to unknown parties, no matter how convincing their story may seem.
• Familiarize yourself with the common red flags associated with beneficiary scams, and trust your instincts if something feels off.
• If you have doubts about an inheritance claim’s authenticity, consult a trusted legal professional before taking action.

What to Do If An Inheritance Scam Targets You

Scammers target older adults because they are less likely to report suspected fraud. Suppose you believe an inheritance scam has targeted you. In that case, acting quickly to protect yourself and others is essential. Here’s what you should do:

• Don’t respond to the inheritance scam emails, letters, or phone calls. Engaging with them may only encourage further attempts to defraud you.
• Report the scam to the relevant authorities, such as the Federal Trade Commission (FTC). More than 2,800 law enforcers will see it and help you out, as will your local law enforcement agency. Provide as much detail as possible, including any communication you’ve received from the scammer.
• Inform your family and friends about the scam to help raise awareness and prevent others from falling victim.
• Monitor your credit reports and financial accounts closely for any suspicious activity. If you’ve provided personal information to the scammer, consider placing a fraud alert on your credit file.

Remember, you’re not alone. Thousands of people fall victim to inheritance scams every year, and there is no shame in seeking help if you’ve been targeted.

Empowering Yourself and Your Loved Ones Against Inheritance Scams

Inheritance scams are a harsh reality in today’s world, but by arming yourself with knowledge and remaining vigilant, you can protect yourself and your loved ones from these heartless fraudsters. Remember, a genuine inheritance will never require upfront payments or sensitive personal information.

Stay informed, trust your instincts, and don’t hesitate to seek help if you suspect a scammer has targeted you. Share this information with your family and friends, especially those who may be more vulnerable to these schemes.

Together, we can create a safer, more secure future for ourselves and future generations. Don’t let inheritance scams rob you of your hard-earned peace of mind and financial stability. 

Empower yourself with the tools and knowledge to spot and avoid these insidious schemes and confidently enjoy your golden years.