It’s a fact that Australia is among the highest scammed countries globally. According to a statement by the Australian Competition & Consumer Commission (ACCC), scams cost Australians a staggering $2.74 billion in 2023.
Chances are you’ve lost count of how often scammers have reached out to you. You may have become ultra cautious by dismissing every approach as a scam. And that’s quite understandable.
The unfortunate side-effect is that you could miss out genuine opportunities as well. You may be among 1 in every 3 Australians who have a share in 23 billion dollars of unclaimed money currently held by government holding authorities.
This blog explores the face off between scams and unclaimed money. It includes practical tips to identify genuine opportunities, your rights, and how to navigate the reclaim process safely.
What is Unclaimed Money?
Many people are not aware that they have unclaimed money from forgotten bank accounts, unclaimed shares/dividends, dormant super accounts, unclaimed bonds/deposits, insurance policy payouts, and unknown inheritances. This may be due to a change of address, liquidation, moving overseas, uncashed cheques, unknown inheritances, and more.
Companies that hold these unclaimed funds are required by law to transfer them to relevant government holding authorities. Then, if rightful owners of these funds do not submit refund claims within a specified time, the money can be absorbed as government revenue. If you have unclaimed money, it is crucial to recover your funds before this time runs out.
How to recover your Unclaimed Money
The good news is your rights are protected by the Unclaimed Money Acts of each State and Territory in Australia.
However, it can be challenging to find your lost money and then navigate the recovery process yourself. Each State and Territory in Australia have their own rules, processes and departments to manage unclaimed money. A simple alternative is to work with an authorised recovery agent – much like you would consult a real estate agent to sell your house (even though you could do it yourself).
The question is how do you distinguish a genuine recovery agent from a scammer?
Authorised Recovery Agents
Here are some practical tips to help you identify trustworthy agents and avoid being scammed:
Verify Credentials: Check if the agent’s business is registered in Australia with a valid Australian Business Number (ABN).
Check for Licensing: Ensure the agent is authorised to operate with a licence number and is part of an association such as the Unclaimed Money Association of Australia (UMAA).
Read Reviews: Look for reviews from previous clients – especially Google reviews. Genuine agents will have a track record of successful recoveries and satisfied clients.
No Upfront Fees: Be wary of agents who demand upfront fees. Established recovery services will only charge a recovery fee after a refund claim is approved.
Free Search: Some generous recovery agents may offer a free, no-obligation search for lost money. This could be useful to identify if you do indeed have some lost funds.
Transparency: Reliable agents will be transparent about their processes and fees. They should be able to provide clear information on how they plan to recover your money and what the costs will be.
Confidentiality: Make sure the agent has a Privacy Policy that prevents the sharing of personal information with non-relevant parties, and that copies of identification documents are deleted once the claim is approved.
Take Control of Your Unclaimed Money
While the threat of scams is real, it shouldn’t deter you from reclaiming what is rightfully yours. This is particularly relevant during the current cost of living crisis.
In an ideal scenario, you should have nothing to lose. You choose an authorised recovery agent without paying an upfront fee. They find your lost money, submit a comprehensive claim, and recover your funds safely. If your claim is not approved, you should not be expected to pay anything.
While the statistics about scams are daunting, with the right knowledge and precautions, you can reclaim your lost funds successfully, safely and legitimately.
The author, Mario Gomes, is the Director of Reclaimed Wealth Specialists – an authorised recovery agent registered in Australia (ABN 92996 952952) and a member of the UMAA.