A Real Industry with Real Predators
Because excess proceeds claims involve money that many people do not know about, the industry attracts both legitimate recovery professionals and bad actors who exploit confusion for profit. The difference between the two is not always obvious at first glance. Scammers use professional-looking websites, official-sounding names, and persuasive language designed to create urgency and trust.
Protecting yourself starts with understanding the tactics that bad actors use. Below are the most common red flags.
Red Flag #1: Unsolicited Contact Claiming They Found Money for You
Legitimate companies and attorneys do sometimes reach out to potential claimants. But be suspicious of unsolicited phone calls, text messages, emails, or letters — especially if they claim to have "already found" money and need only your signature to release it. Ask how they got your information. Ask for the specific case or parcel number. Verify independently before proceeding.
Red Flag #2: Demands for Upfront Payment
Legitimate surplus fund recovery is generally done on a contingency basis — the recovery professional is paid only if and when funds are recovered. If a company demands an upfront fee, a "research fee," an "administrative fee," or any payment before you receive any money, walk away. This is one of the strongest indicators of a scam.
Red Flag #3: Excessive or Undisclosed Fees
Even contingency-based agreements can be predatory. Some operators take 40%, 50%, or more of the recovered funds. Ask explicitly: what percentage will you keep? Get it in writing. A legitimate operator should be transparent about their fee structure and willing to put it in a clear, written agreement.
Red Flag #4: High-Pressure Tactics
Scammers create false urgency. They tell you the deadline is tomorrow. They insist you must sign immediately. They discourage you from consulting an attorney or taking time to think. Legitimate professionals understand that important financial decisions deserve careful consideration. Anyone who pressures you to sign before you are ready is not acting in your interest.
Red Flag #5: Misrepresentation of Authority
Some companies use names that sound like government agencies — words like "Bureau," "Authority," "Department," or "Official" — to imply they have government authority. They do not. They are private companies. Some claim to be attorneys when they are not. Verify any professional credential independently. Check the state bar website for attorneys. Check the Secretary of State for business registrations.
Red Flag #6: Refusal to Let You Review Documents
If a company refuses to send you a copy of the agreement to review before signing, refuses to let you have an attorney review it, or insists that the agreement is "standard" and does not need to be read carefully, do not sign. You have the right to read and understand any contract before you agree to it.
How to Verify Whether a Company Is Legitimate
- Check business registrations. Search the company's name with the Secretary of State in the state where it claims to operate.
- Check attorney licensing. If the company claims to be a law firm, verify with the state bar association.
- Search for complaints. Check the Better Business Bureau, your state Attorney General's consumer protection division, and online reviews.
- Ask for references. A legitimate company should be able to provide references from past clients.
- Call the county directly. If someone tells you surplus exists, call the county treasurer or clerk's office yourself to confirm the information.
What to Do If You Suspect a Scam
Report it. Contact your state Attorney General's office, the Federal Trade Commission, and your local consumer protection agency. If you have already signed an agreement and believe you were defrauded, consult an attorney immediately. Some states have cooling-off periods during which certain contracts can be cancelled — but these vary, and time is often limited.