Unclaimed Cash & Cyber Threats: How to Secure Your Funds & Avoid Scams
Billions in unclaimed property sit with the state – but claiming it requires vigilance. We investigate the growing cybersecurity risks and how to safely recover your lost assets.
Unclaimed Cash & Cyber Threats: How to Secure Your Funds & Avoid Scams
By Matthew Richardson, Innovation & Technology Columnist
California residents are collectively owed billions of dollars in unclaimed property – everything from forgotten bank accounts and uncashed checks to insurance payouts and dormant investment accounts. While the prospect of easily reclaimed funds is appealing, experts warn of a growing cybersecurity threat lurking behind the process, and advise careful steps to protect personal information.
According to the California State Controller’s Office, the total amount of unclaimed property currently held by the state exceeds several billion dollars. Yet, a surprisingly small percentage is ever claimed. While the state actively works to reunite citizens with their assets, the process of claiming them can inadvertently expose individuals to scams and data breaches.
“Many people are unaware that they have unclaimed property, and even fewer understand the potential risks involved in claiming it,” explains a cybersecurity analyst. “The process requires sharing sensitive personal and financial information, creating an attractive target for malicious actors.”
The Rise of ‘Finders Keepers’ Services & the Cybersecurity Risk
Recognizing the complexity of navigating state databases and claim procedures, a growing number of ‘finders’ services have emerged to assist individuals in recovering their unclaimed funds. These services typically operate on a contingency fee basis, taking a percentage of the recovered amount as compensation. However, the emergence of these services also introduces a new layer of risk.
“The problem isn't the legitimate services,” says an industry insider, “it's the bad actors who masquerade as legitimate recovery firms to harvest personal information.”
The primary cybersecurity risks associated with claiming unclaimed property and utilizing recovery services include:
- Phishing Scams: Malicious actors send emails or text messages disguised as official notifications from the state or recovery services, attempting to trick individuals into revealing sensitive information.
- Data Breaches: Unsecured websites and databases used by recovery services can be vulnerable to data breaches, exposing personal and financial data to hackers.
- Identity Theft: Stolen personal information can be used for identity theft, leading to financial loss and damage to credit.
Blue Navy Recovery Emphasizes Data Protection
Blue Navy Recovery, a professional unclaimed property recovery firm operating in California and Georgia, recently released a report detailing the steps Californians can take to successfully claim their unclaimed property while minimizing cybersecurity risks. The company distinguishes itself by prioritizing data protection and implementing robust security protocols.
“Our clients trust us with their most sensitive information, and we take that responsibility extremely seriously,” stated a media spokesperson at Blue Navy Recovery. “We’ve invested heavily in cybersecurity infrastructure and protocols because we believe that recovering unclaimed property should never come at the expense of our clients' security.”
The company highlights several key security measures it employs, including data encryption, secure transmission protocols, and regular security audits.
Protecting Yourself: A Step-by-Step Guide
Whether you choose to navigate the claims process yourself or utilize a recovery service, here’s a comprehensive guide to protect your personal information and avoid scams:
- Start with the Official Source: Begin your search directly on the California State Controller’s Office Unclaimed Property Database: https://sco.ca.gov/upf_search.html. This eliminates the risk of interacting with fraudulent websites.
- Verify Authenticity: Be wary of unsolicited emails or text messages claiming you have unclaimed property. Always verify the sender’s authenticity by contacting the State Controller’s Office directly.
- Secure Websites: When submitting information online, ensure the website is secure. Look for