Investment experts advise stock owners to periodically check their accounts to avoid losing them to state governments. Depending on the state, securities may be declared abandoned if not actively managed, even if dividends continue to be paid automatically.

In recent years, states have quietly revised unclaimed property laws, making it easier to classify securities as abandoned. Computershare, a major stock transfer agent, reported that 51,320 lost-securityholder accounts were turned over to states in 2024 alone. Historically, many states waited seven years before treating stock as abandoned, but this period has been shortened in many jurisdictions.

A notable case from 2006 involved the Securities and Exchange Commission (SEC) accusing the Bank of New York of failing to properly locate approximately 14,159 lost securityholders due to mailroom and computer errors.

Additionally, Peters, a German citizen and former Amazon employee, owned 1,029 Amazon shares before the company's 20-for-1 stock split, illustrating how investors can lose track of their holdings.

Experts warn that governments can seize accounts simply because they are not actively used, emphasizing the importance of monitoring investments regularly.

Sources