Scams Targeting our Military Community
Servicemembers, veterans, and military families can be particularly vulnerable to scams designed to steal money, personal information, or access to financial accounts. In 2023, the military community experienced $477 million in reported fraud losses, highlighting the importance of recognizing potential scams and knowing how to respond.
Many scams have the same goal: obtaining sensitive information such as Social Security numbers, bank account information, credit card numbers, passwords, or other personal details.
The best defense is awareness. Be cautious about sharing information with people who contact you unexpectedly by phone, email, text message, or social media. Before entering into a financial or business relationship with an organization that claims to assist servicemembers or veterans, take time to research the organization and verify its credentials.
Readers can learn more about fraud affecting servicemembers and veterans through AARP's information on military fraud.
Loans and Lines of Credit
There are many reasons someone might apply for a new line of credit, including purchasing a vehicle, opening a credit card, or obtaining a short-term loan. Although financial protections exist for members of the military, predatory lending practices can still occur.
The Military Lending Act provides certain financial protections for eligible servicemembers and their dependents. However, those protections do not apply to every type of financial transaction.
If you're considering a loan or new line of credit, carefully review the interest rate, fees, repayment requirements, and other terms before agreeing to anything.
Be particularly cautious of lenders that:
Guarantee credit or loan approval
Advertise that no credit check is necessary
Pressure you to make an immediate decision
Charge unexpected or difficult-to-understand fees
Aren't transparent about the total cost of borrowing
You can learn more about the Military Lending Act through Navy Mutual.
Romance and Friendship Scams
Romance and friendship scams often begin with someone building an online relationship before claiming to experience an urgent financial crisis.
The person may say they need money for rent, transportation, vehicle repairs, child support, travel expenses, or another emergency. A romantic interest may claim they need money for a plane ticket or transportation so they can visit.
Be cautious about sending money, prepaid debit cards, gift cards, or wire transfers to someone you have met only online.
If a request for money appears to come from someone you know, contact that person independently using information you already trust to confirm that the request is legitimate.
Family Emergency Scams
Scammers may also target the loved ones of servicemembers and veterans, sometimes claiming that the servicemember has been injured, arrested, or involved in another emergency.
The scammer may pressure the family member to send money immediately through a wire transfer, payment app, or gift card. They may also use threats or insist that sending money is the only way to help.
If you or a family member receives this type of communication:
Pause before taking action.
Don't provide personal or financial information.
Don't send money immediately.
Contact the servicemember directly.
Independently verify that the emergency actually occurred.
Urgency is frequently used to prevent people from taking the time to verify what they're being told.
Veterans Services and Disability Claims
Veterans seeking assistance with VA disability claims should be especially careful when choosing an individual or organization to help with the process.
Potential warning signs include an individual or organization that:
Guarantees a particular disability rating
Requests your VA.gov username or password
Requires you to sign questionable contracts before receiving assistance
Advises you to skip VA medical appointments
Charges questionable fees for assistance with an initial claim
Veterans can use the VA Accreditation Search to locate and verify accredited attorneys, claims agents, Veterans Service Organizations, and representatives.
Veterans should also be cautious about paying an organization to obtain government records that may be available directly through agencies such as the VA or National Archives.
Navy Mutual is an accredited Veterans Service Organization and provides assistance with VA claims to veterans, survivors, and family members at no charge. Those looking for assistance can contact Navy Mutual's Veteran Services team.
Phishing Scams
Phishing scams can affect anyone, including members of the military community. These scams often involve a phone call, email, or text message designed to appear as though it came from a trusted financial institution or government agency.
A message might claim that:
A payment is past due
There's suspicious activity involving an account
Your personal information needs to be verified
There's a problem with your Social Security information
You need to provide financial information immediately
Be cautious with unexpected messages, even when they appear legitimate.
Don't click unfamiliar links or download unexpected attachments. Instead, independently contact the organization using contact information you know is legitimate.
For example, if someone calls claiming to represent your bank, end the call and use the telephone number listed on the back of your debit or credit card to contact the bank directly.
You can also review information about Social Security-related scams from the Social Security Administration and IRS imposter scams from the Federal Trade Commission.
What to Do If You Suspect a Scam
If you receive a phone call, email, text message, or social media message that feels suspicious, pause before responding.
Scammers frequently rely on fear and urgency to encourage people to act before they've had time to think or verify the situation.
Don't click links, download attachments, provide sensitive information, or send money until you've independently confirmed that the request is legitimate.
If the message claims to represent an organization, contact that organization directly using a publicly available and trusted phone number or website.
If someone claims that a friend or family member is experiencing an emergency, contact the person involved or another trusted individual who can verify what happened.
If you believe you've been targeted by a scam, whether or not you lost money, you can report suspected fraud to the Federal Trade Commission.
Active-duty servicemembers may also consider notifying their command if a scam could potentially affect others within their military community.
Stay Alert and Take Your Time
One of the simplest ways to protect yourself from fraud is to slow down.
Unexpected requests for money, pressure to act immediately, requests for sensitive information, and demands for unusual forms of payment should all be treated cautiously.
Take the time to verify who you're communicating with and whether the request is legitimate before providing information or money. A few extra minutes of verification can help protect your finances, identity, and family.
Author - Navy Mutual
