DENVER — A scam promising millions in unclaimed life insurance money is making the rounds again, and federal officials are warning that you should ignore the calls and letters.
The Federal Trade Commission (FTC) issued a consumer alert this month warning about scammers posing as lawyers who claim that someone with the same last name has died and left a massive life insurance policy behind.
The catch: The money does not exist.
Denver7 Investigates consumer reporter Jaclyn Allen has more on this scam in the video below:
Denver7 Investigates found Colorado families are among those being targeted.
Eric Lozano, who lives in Morrison, filed a report with BBB ScamTracker after he said someone contacted members of his family claiming to have information about a life insurance policy connected to his aunt.
“This person called multiple members in my family trying to get information,” Lozano wrote in the complaint.
According to the FTC, the scam often starts with a letter, email or phone call from someone claiming to be an attorney or representative of a law firm.
The person tells victims they are the heir to a multi-million-dollar life insurance policy or inheritance left behind by someone they have never met.
The scammer may claim the money would be split among the recipient, charities and the supposed law firm handling the case.
The FTC said the story is designed to gain trust and pressure people into handing over sensitive information.
They will try to get your personal and financial information, like Social Security numbers or bank account numbers, the agency warned in its alert.
In some cases, scammers also ask victims to send money upfront for taxes, processing fees or legal paperwork.
Consumer advocates said there are several red flags:
- Unexpected contact about a large inheritance
- Pressure to act quickly or secretly
- Requests for personal or banking information
- Demands for upfront payments
The FTC said anyone who receives one of these calls or letters should not respond and should never send money or personal information to strangers promising large rewards.
Consumers can report scams to the FTC at ReportFraud.ftc.gov.
