Greg's Corner

Scammers Are Mailing Fake Inheritances

By Greg Collier

As families gathered during the holiday season, scammers were taking advantage of the distractions and emotions that come with it. A new warning out of Iowa highlights how fraudsters are once again reviving a familiar scheme: the “long-lost relative” inheritance scam.

According to a recent alert, Iowa residents have been receiving letters claiming they are entitled to a large inheritance from a relative they never knew existed. The pitch sounds formal, official, and even comforting until victims realize it’s designed to drain their personal information and money.

What’s Going On

The Iowa Insurance Division (IID) says these scams often begin with a letter or email stating that the recipient is the only surviving heir of a deceased relative. The message typically directs the recipient to contact a law firm, often supposedly based in another country, such as Canada, to begin the inheritance process.

Once contact is made, scammers gradually extract sensitive personal details, including banking information and Social Security numbers. Eventually, victims are asked to send money to cover “taxes,” “legal fees,” or other costs required to release the inheritance.

Of course, there is no actual inheritance.

How the Scam Works

This scheme relies on a mix of curiosity, trust in legal-sounding language, and the hope of unexpected financial relief, something scammers know is especially tempting during the holiday season.

The process usually follows a predictable pattern:

• An unsolicited letter or email claims a distant relative left behind a large sum of money
• The recipient is told they must act quickly to claim it
• Personal information is requested “to verify identity”
• Fees or taxes are demanded before the funds can be released

Once money or personal data is sent, it’s typically impossible to recover.

Red Flags

The IID has outlined several warnings that should immediately raise concern:

• Messages from unknown senders, often based in another country
• Claims of large inheritances from relatives you’ve never heard of
• Requests for sensitive personal information, including bank details or Social Security numbers
• Demands for upfront payments to cover taxes, fees, or legal costs

It’s worth remembering that legitimate law firms do not request fees upfront or solicit sensitive personal information through unsolicited letters or emails.

How to Protect Yourself and Your Family

If you receive a message like this, do not respond. Do not provide any personal information, and do not send money no matter how official the letter appears.

The IID strongly encourages people to talk with family members about inheritance scams, especially older relatives who may be more likely to receive physical letters and take them at face value.

Final Thoughts

Scammers thrive on timing, and the holiday season gives them plenty of opportunities. If an inheritance offer appears out of nowhere, promises large sums of money, and asks for personal details or upfront fees, it’s almost certainly a scam.

When it comes to unexpected windfalls, skepticism is your best protection.

Further Reading

• Inheritance scam targets Iowans during holiday season
• Contacted about a long-lost relative’s inheritance? Hold on a minute
• Inheritance Scams