Unclaimed Life Insurance Scams

Consumers are receiving letters in the mail about unclaimed life insurance money. They appear to have been sent by law firms, and the “lawyer” says one of their clients has died – and the letter recipient is the heir to a life insurance policy worth millions. The letter then explains that they want to split the proceeds between the consumer, some charity organizations, and their law firm.

These letters are sent by scammers, not a real law firm, and the life insurance policy does not really exist. It might sound convincing, with the firm supposedly trying to contact family members and finding no close relatives to inherit “the fortune.” Consumers might even be tempted to reply, since it seems like the worst that would happen is they don’t get a share of the money. But there is a worse possibility: consumers who contact the scammer will be asked to provide personal and financial information (like Social Security or bank account numbers) and/or send money.

This scam has been reported nationwide, including Wisconsin. In late June, one consumer reported a letter to DATCP which claimed they could receive $4.9 million in a “100% risk-free” transaction and “in conformity with the statutory law.” The scammer included an email address the recipient could use to expedite the “transaction.” This consumer realized it was a scam through several clues:

· The letter included minor typos, like repeatedly lower-casing the word “I” as “i.”

· It was postmarked in Atlanta, Georgia, but claimed to have come from a Canadian law firm.The consumer even contacted the Canadian Bar Association to check if the attorney and law firm were legitimate.

· The consumer ran an internet search and found images of very similar scam letters online, from the same attorney and firm.

It is important for consumers to exhaust all options when verifying whether a too-good-to-be-true offer is real. The Wisconsin consumer in this case refused to visit the fake law firm’s website or contact them until after they were sure it was authentic. After being unable to verify the letter, they reported the scam attempt to DATCP.