Poised to take advantage this Veterans Day, scammers will be lurking trying to swindle our past and present military personnel. The Better Business Bureau is warning about various offers designed to target veterans and the armed forces.
“Our Veterans have protected us and we should do all we can to protect them from bad deals and phony offers,” said David Polino, Better Business Bureau President. “Anyone of us could become a scam victim, but veterans and military families are targets for crooks who prey on their military service.” Since veteran’s scams can take many forms, the BBB offers the following information on different types of scams and deals that can put our Veterans at jeopardy of becoming victims of fraud, paying more for items than they should or falling prey to identity theft.
Scams targeting Veterans and Military Personnel:
Charging Fees for Service. Look out for firms that target veterans and charge them for products and services they can receive free or at lower cost elsewhere, such as military records and forms.
Update Claims. Be cautious of scammers who contact veterans saying that they need to update their credit card information or other records with the Veterans Administration. The scammers then use the information to commit identity theft.
Bogus Charities. Be wary of bogus charities with names that reference the Armed Forces and seek donations. If you receive a call or mail from a veteran’s organization asking for a donation, do your research. Many, if not most, veterans organizations use professional fundraising organizations that can keep up to 85% or higher of donations received.
Ask if they are professional telemarketers. By law, they must disclose this information. Also, many of these veteran organizations are not tax deductible. A legitimate charity will allow you ample time to check them out. Visit www.bbb.org/charity for a list of nationally soliciting charities to make sure any charity you’re interested in donating to meets BBB’s Standards.
False Benefit Claims. Hang up on fraudsters calling themselves veterans advocates who try to convince veterans that they can get more benefits by transferring their investments into an irrevocable trust, which often contains unsuitable investments.
Military Loan Deals. Flashy offers promising "up to 40 percent of your monthly take home pay," "guaranteed loans," "instant approval," "no credit check," "all ranks approved," often come with sky-high interest rates and hidden fees designed to bilk borrowers out of cash and damage financial security.
Housing Discounts. Ads promising military discounts and too-good-to-be-true incentives use stolen photos of legitimate rental properties to bait renters out of security deposits via money transfer schemes.
Car Offers. Low-priced vehicles posted on classified ad websites tout discounts for military personnel, or claim to be from soldiers who need to sell fast because they've been deployed. Schemers convince buyers to wire money; however, vehicle data is stolen.
Job Offers - Veterans For Hire. This scam targets our younger veterans. Scammers pose online as representatives of government contracting firms. When veterans contact them for a job, they ask for a copy of the veteran’s passport before they can officially offer them a job. Of course there is no job to offer and the con artist now has personal information that can be used for identity theft.
Veteran’s benefits buyout plans - This buyout plan will offer a cash payment in exchange for a disabled veteran’s future benefits or pension payments. The cash amount is only about 30-40% of what the veteran is entitled to. These buyout plans can be structured in several different ways, so research thoroughly before signing anything over.
BBB recommends the following tips to avoid these and other scams:
Do your research. Get as much information as you can about a business or charity before you pay. You can read BBB Business Reviews at bbb.org.
Don’t wire transfer money to anyone you don’t know. Money sent via wire transfer is practically impossible to track. Pay by credit card whenever possible, since you can dispute charges easily.
Safeguard Identities. Actively deployed military personnel can place an "active duty alert" on their credit reports to help minimize the risk of identity theft. With this alert, the Fair Credit Reporting Act requires creditors and businesses to verify identities before issuing or granting credit. The Federal Trade Commission offers advice to help military families deter, detect and defend from identity theft.
Protect your computer. Don’t click on links within unsolicited emails. Don’t enter personal information on unfamiliar websites. Make sure that you have updated anti-virus software installed and use a firewall at all times.
Find Free Resources. Military families who need assistance don’t need to pay for help. In addition to BBB Military free resources, service men and women can turn to the FTC , National Association of Insurance Commissioners, and www.saveandinvest.org, a free service of the NASD Investor Education Foundation.
Report Scams. File complaints with BBB, www.bbb.org, the FTC, www.ftccomplaintassistant.gov, or the Internet Crime Complaint Center at www.ic3.gov.
Remember that federal agencies do not contact veterans via e-mail or text, and if they do call someone, they don’t request personal information. Veterans who receive suspicious correspondence can contact the Department of Veteran Affairs at 1-877-222-8387 with questions. You can get information on how to qualify for veteran’s benefits by contacting New York State Division of Veterans' Affairs.