Inheritance Scams - How To Spot and Avoid Fraudulent Claims

Inheritance scams are deceptive tactics used by fraudsters to lure unsuspecting victims with promises of substantial wealth. These scams typically involve false claims of inheritance from unknown individuals or distant relatives, accompanied by requests for fees or personal data for funds to be released. Many victims succumbed to these schemes due to the emotional appeal of unexpected fortune, urgency created by scammers, and the presentation of seemingly legitimate documents of stories.

What Is an Inheritance Scam?

An inheritance scam usually begins with an email, phone, or letter from a malicious actor claiming that the other person at the end of the communication has inherited assets, real property, jewelry, or money from a deceased individual. They craft convincing stories, posing as lawyers, officials, or bank representatives. In their communications, these scammers request victims to pay taxes, legal fees, or other charges to access the supposed inheritance. Such fraudulent claims often include fake documents or impersonations to appear legitimate. However, once the requested fees are paid, the promised inheritances never materialize, leaving victims with financial losses.

Common Tactics Used by Scammers

In carrying out their malicious scheme, fraudsters deploy the following inheritance scam formats:

• Fake Lawyers: Inheritance scammers pose as attorneys representing a dead person who has allegedly left the victim a huge fortune. To sound like an authentic attorney, the scammer may use legal jargon and fake documents.
• Phishing Emails: In this inheritance scam format, the scammer writes the victim an email pretending to be an estate executor or a reputable law firm. The scammer will include a link in the email, directing victims to a professional-looking but fraudulent website. The website will be used to collect financial and personal information under the pretense of verifying the inheritance that is supposedly the victim's.
• Inheritance Email Scam: In an inheritance email scam, the victim will receive an email claiming that they have inherited money from an unknown benefactor, but more commonly, a distant relative. However, to claim the inheritance, the victim will be required to send personal information or payment as processing fees.
• Urgent Requests for Action: Here, the scammer creates a false sense of urgency, stating that the victim will lose the inheritance if they fail to respond quickly by paying "legal fees" or "taxes" to release the money.

Red Flags to Watch Out For

Despite the prevalence of inheritance scams, the tactics used can be detected quickly if you are aware of the common features of their schemes. The following are some major red flags that may help you spot and avoid inheritance scams:

Unsolicited Contact from Unknown Sources

If you receive a call, letter, or email from anyone about an inheritance you know nothing about, it is likely a scam. Usually, legitimate inheritance originates from people close to you, such as family members. True inheritance often comes from documented wills.

Requests for Personal or Financial Information

If someone you do not know asks for your Social Security number, identification, or bank details, chances are that they are trying to defraud you or use your information for identity theft.

Pressure Tactics and Urgency

Scammers often include urgency via a request or action that you must take immediately or within a short period in order not to lose the claimed inheritance. This is a pressure tactic to ensure you do not have enough time to verify their claims.

Upfront Fees or Taxes Required

One common feature of inheritance scammers is a request for their victims to pay upfront fees tagged under different names, such as legal fees, processing fees, or tax. These bad actors typically claim this fee is mandatory before the inheritance may be released. Legitimate inheritance does not require upfront fees.

Suspicious Communication Methods

Many scam communications often contain grammar errors, unusual phrasing, and vague language. If communication is official, you can expect that it will be well-written and personalized. Also, legitimate legal representatives are more likely to use official email domains, such as (xyz@lawfirm.com), than generic ones such as Yahoo, Gmail, or Hotmail.

How To Protect Yourself from Inheritance Scams

You can protect yourself from falling victim to the tricks used by scammers who perpetrate inheritance scams in the following ways:

Verify the Legitimacy of the Claim

Upon getting a call, letter, or email stating that you are a beneficiary of an inheritance scam, you should consider confirming the validity of the inheritance claim. To do this, you may check legal records, consult with a trusted attorney or the probate court handling the estate. Verifying the document sent or claims made via official channels will help you avoid falling victim to an inheritance scam.

Never Share Personal Information

Inheritance email scams often involve requests for personal details such as Social Security numbers or bank account numbers. Never provide sensitive information to unknown individuals, whether via email or phone. Scammers often rely on getting personal information to further exploit victims.

Report Suspected Scams

If you suspect an inheritance scam, you should report it immediately to the appropriate authorities in your jurisdiction. In the United States, you may file complaints against this type of scammer to the FTC (Federal Trade Commission), local law enforcement, or the state attorney general's office. In doing so, you may be preventing other potential victims from being targeted.

Real-Life Examples of Inheritance Scams

Inheritance scams often involve elaborate schemes and tactics designed to deceive victims into believing they are entitled to a significant inheritance. Below are some recent real-life examples:

• The $6 Million Scam: Nigerian national Okezie Bonaventure Ogbata orchestrated a transnational inheritance scam targeting over 400 elderly victims in the U.S. In the inheritance scam, elderly individuals were targeted through personalized letters allegedly sent by a representative of a Spanish bank. These letters claimed that the recipients were heirs to a multimillion-dollar inheritance from a distant relative who had passed away abroad.

To claim the inheritance, victims were instructed to pay various fees, including delivery charges and taxes. Scammers, led by Ogbata, employed previous victims in the United States to collect and transfer payments. Unfortunately, those who complied were left empty-handed, as the promised inheritance never existed.

• The Scot Stuart Inheritance Scam: Between 2003 and 2010, Scott Alan Stuart orchestrated an inheritance scam, convincing investors across the United States to send him money in pursuit of a supposed Nigerian inheritance. Stuart claimed that his father had earned millions constructing an oil pipeline in Nigeria and that his inheritance, worth $30 million, was being held in a Canadian bank.

Stuart assured investors that if they provided funds to cover taxes and other fees, he could access the inheritance and deliver substantial returns on their contributions. He referred to these payments as "loans," promising to repay them quickly with extraordinary interest.

While Stuart claimed to have sent around $200,000 to intermediaries in the U.S. and Nigeria to secure the inheritance, most of the money collected was used to cover his personal expenses. Some individuals sent as much as $45,000, hoping for a big payoff once the inheritance was secured.

Many even encouraged friends to contribute, believing more funds would finally unlock the promised wealth. Unfortunately, the inheritance was a fabrication, leaving victims with financial losses and unfulfilled promises.