Abstract: A lost key rewards system and method which allows key owners to register their keys with a central database accessible by a world wide website portal where the key owner's contact information is kept private and confidential. In particular, the lost key rewards system and method utilize an encoded key tag, each with a unique key tag number that a key tag owner may attach to their keychain or key ring. The key tag also has instructions for accessing a specified website and forwarding the found key tags for a reward. A key tag owner may participate in the program by registering their key tag with its unique key tag number along with their contact information. Thus, if the key tag owner's keys and key tag are lost and found, the key tag finder has a system and method of returning the keys to the key tag owner and may choose to receive a reward.