If there’s money involved, scammers will try to find a way to get their hands on it. Some recent inheritance scams have used long-con tactics to trick people into thinking they’ve inherited money, while others prey on grieving loved ones. The more you know about these scams, the less likely you are to get duped.
The Long-Lost Relative Scam
Receiving an inheritance from a long-lost relative you’ve never even heard of is a little like winning the lottery. You receive a potentially life-changing amount of money, and because you didn’t even know the individual, the windfall comes without the grief of losing someone close to you.
It’s also not very likely to happen. Although a lot of people are owed unclaimed property – you can go to unclaimed.org to see if you have any unclaimed property – it’s far less common for someone to inherit a significant sum of money from a long-lost relative.
Scams involving long-lost relatives, on the other hand, are quite common.
According to KSLTV, this scam has been targeting people in Utah recently. In one example, a scammer posed as an accountant and told a woman that she was owed nearly $13 million after a distant relative and his family died in a car crash. In other iterations, scammers pose as lawyers or bankers, and they may say the person is owned an insurance payout.
The scammers are typically after money, but they may not make a move immediately. According to The Wealth Advisor, a man in Wisconsin was hit with an inheritance scam, but the scammers did not ask for any money upfront. It’s a long con designed to foster trust before swindling the victim out of money.
The FTC says scammers often offer to split the inheritance, and they may try to get your personal information in addition to or instead of your money. If you are approached by a scammer, do not provide any money or information. You can report the scam to the FTC.
The Inheritance Trap Scam
Even if you know that an inheritance is legitimate, you could still end up being the victim of a scam. Some scammers target grieving loved ones who are going through the probate process.
Fox News says it’s called the “inheritance trap.” Probate records are public, and these records can include sensitive information like the names and addresses of heirs and beneficiaries, asset inventories, estate values, property descriptions, court dates, court filing details, and the names of personal representatives. Scammers use the information to pose as attorneys, debt collectors or estate service providers and demand various fees. For example, a scammer may send a letter about a made-up debt and demand immediate payment, or the scammer may offer services to help find hidden assets and disappear after receiving payment.
The Investment Scam
Scammers may also target people who have inherited money with investment scams.
Investment scams are extremely common, and they come in many different varieties. The IC3 received 47,919 complaints about investment scams in 2024, with losses totaling more than $6.5 billion. According to the FTC, common investment scams include cryptocurrency scams that direct you to a fake app or website to invest, training scams that charge money for ineffective coaching, and real estate scams that sell luxury properties that take years to build and fall short of what was advertised.
Anyone can fall victim to an investment scam, but people who have recently inherited money may make particularly attractive targets since they may be looking for guidance on what to do with their newfound wealth. According to MSN, a woman lost the £28,000 she inherited from her family after falling for an investment scam.
How to Stay Safe
It’s unfortunate that scammers are willing to prey on people who are grieving or in need of money or assistance, but it’s a reality of the modern world.
- Be cautious. Scammers may know personal details, and they may use AI to create very convincing messages. If someone contacts you out of the blue to offer services, provide advice, or tell you that you’re owed money, there’s a good chance it’s a scam. Do not give any money to the person, and safeguard your personal information.
- Work with trusted advisors. If you are acting as the executor of a loved one’s estate, an estate planning attorney can help guide you through the process. If you have inherited a substantial sum of money, look for a trustworthy accountant or financial planner to help you manage the inheritance.
Do you need help navigating estate planning and probate? Contact Skinner Law.