Common Scams Targeting Active Duty Servicemembers, Veterans and Their Families

The military community loses more money on average to scams than the general population. That’s because they have consistent paychecks, government benefits and their military records are available online. Let’s explore some of these scams so that you have the knowledge you need to detect and avoid them.

Types of Scams Commonly Targeting Active Duty, Veterans and Families

Scammers are incredibly crafty when it comes to conning unsuspecting servicemembers and their families. They highjack the loyalty within this community and use it to convince victims to send money or provide personal information. Here’s a look at some of the most common scams:

Imposter scams

This is the most popular scam aimed at servicemembers, veterans and their families. The scammer poses as a friend or family member—even a romantic interest—who calls, texts or emails with an “urgent” financial need. They leverage the military’s sense of duty and responsibility, and usually ask for an amount of money that seems reasonable.

In another version of this scam, the bad actor might pose as a government employee asking for bank account information, Social Security Numbers or military identification information.

They’ll claim that it’s for official business, but here’s the reality: they’re trying to scam paychecks and benefits. Similarly, beware of any “financial institution” that asks for this information over the phone—it might be a malicious attempt to access your accounts.

Scammers are known to pose as military-focused charities and prey on your emotions to solicit donations for a good cause. Before you donate to any charitable cause, make sure it’s legitimate.

How to avoid this scam:

• If anyone reaches out via email, phone, text or dating app and asks for money or personal information, don’t respond to them and report the attempted fraud.
• Always verify the charity at www.charitywatch.org or www.give.org before donating.

Phishing scams from the VA or fake government agencies

Servicemembers, veterans and their families often get communications from the VA and other government agencies. Scammers know this and often try to mimic the look and feel of these emails. They’re hoping to dupe you into clicking malicious links or provide personally identifying information. Clicking the link could lead to malware on your computer, while providing information will often lead to fraud.

In more sophisticated versions of this scam, the email might even include identifying information the scammer already knows about you, such as your branch of the Armed Forces, your location or the names of your relatives. The goal is to get you to trust the message, which usually asks for more information in order to verify your identity.

Keep in mind, phishing isn’t specific to email! Scammers have also taken to using social media to execute these scams, and text scams are becoming increasingly popular.

How to avoid this scam:

• Always closely examine the sender and recipient emails to make sure they’re legitimate.
• Verify the request by contacting the agency separately using a phone number from a trusted source.

Charging for free military records

You might not realize it, but as a servicemember or veteran, your military and medical records are typically free for you to access. The problem is, scammers do know this and often prey on those who don’t. They set up fake websites that look legitimate and charge a fee for providing you with information you could otherwise get for free. While this is a more passive form of scamming, it’s still a scam!

How to avoid this scam:

• Look for an https:// to ensure a secure site. Or, contact the VA or National Archives when you need records.

Investment and pension fraud

This sophisticated scam can go from bad to worse very quickly if you’re not careful. The scammer—often posing as a former servicemember-turned-financial advisor—offers you larger pension payments or an “Enhanced Pension with Aid and Attendance Benefits” by transferring your pension into another account, or in return for an up-front investment. Once you pay the fee, however, they’ll disappear with your money.

While it’s bad enough to lose out on whatever the scammer skips town with, the blowback is even worse. Falling for this scam could result in disqualification from other government assistance, including Medicaid, and strictly limit access to your pension money. It’s a major headache with far-reaching financial ramifications.

How to avoid this scam:

• Always remember: if it seems too good to be true, it probably is.
• Always seek out your own financial advisor and make sure that individual is a Fiduciary with a track record of transparency.

Offering secret government funding

 The idea of finding a “loophole” or a “secret trick” is very appealing to many people looking for a break. Unfortunately, this shortcut almost always ends in a scam. For example, a scammer might contact you to talk about “secret” government loan programs or funding grants that might apply to you. The catch? They need your personal information to see if you qualify. The ruse? They’ll take that information and use it for their own gain.

While the government does offer a wide array of special programs for servicemembers, veterans and their families, none of them are “secret.” More importantly, all of them list the specifications and requirements up front, so you can see for yourself if you qualify.

How to avoid this scam:

• Never give out personal information to anyone asking for it, unless you’ve initiated the conversation and know the person you’re talking to.

Property sale or rental scams

Housing scams are a major problem in the military community, largely because military families are frequently on-the-move. Bad actors have a bag of tricks when it comes to bilking unsuspecting servicemembers out of money.

Scammers will create ads for property sales or rentals that claim to offer military discounts. But this discount doesn’t exist and instead, they’ve merely marked down inflated rental prices in areas popular among military families. Or, scammers will ask that you wire a security deposit or other fees ahead of time—but when you show up, the property doesn’t exist or the scammer didn’t have authority to sell or rent it.

How to avoid this scam:

• Never make a payment until you’ve received a signed contract from the owner and have actually seen the property.

Veteran-friendly employers or schools

The job market can be competitive, and scammers use that fact to prey on the military community. They’ll pose as companies looking to hire and post their jobs on websites like LinkedIn, Indeed and Facebook, specifically calling out veterans to appeal to you. The catch is that instead of coming in for an interview, they’ll conduct it remotely.

Then, at the end, they’ll collect identifying information: your SSN or bank info. Some even ask for payment for bogus training! When you follow up to get a start date or next steps, they’ll already be gone like the wind.

How to avoid this scam:

• Call the company’s HR department to verify the job posting and, if possible, schedule an in-person interview.
• Never give out SSN information during the application or interview process. This information should only be given to an HR professional post-hire.

Credit monitoring scam

These days, data breaches are all too common. Credit monitoring can be a great investment in your protection, especially if your information is out there where bad actors are lurking. But if you’re not careful, credit monitoring itself can be a scam.

Scammers are targeting Active Duty military personnel while they’re deployed. They’ll offer to monitor their credit to protect against identity theft while they’re away. But their real objective is to use your credit information to open new accounts and make purchases in your name.

How to avoid this scam:

• Put your credit cards on a year-long Active Duty alert with the major credit reporting agencies while you’re on deployment.
   

Knowledge is Power Against Scammers

Scammers are relentless in their pursuit of a quick buck or gathering the information they need to impersonate their way to a big payday at your expense. Military servicemembers, veterans and their families are prime targets for these bad actors. Get familiar with their tactics and what you can do to defend yourself against scamming attempts and fraud.

The more you know, the more confident and financially secure you can be. Always remember, Navy Federal Credit Union is always here to help you and your family safeguard your finances.