Scams That Target the Military Community: What to Look Out For

The military community is disproportionately affected by scammers – with the community experiencing $477 million in losses due to scammers in 2023 and the average military-affiliated individual losing $599 (compared to the average civilian losing only $500). There are a variety of scams that exist – but all exist with the same purpose: stealing personal information that can lead to financial gain for the scammer (e.g., a Social Security number, bank account information, credit card numbers).

The best offense is a good defense. Individuals should be very wary about releasing any information to unknown individuals via email, phone, or text message, and should do their background research before entering into a business agreement with an individual or organization that claims to help servicemembers and veterans. Members of the military community should also safeguard their dates of birth, Social Security numbers, addresses, and banking information.

Below are some common scams that target the military community.

Loans and Lines of Credit

There are a number of reasons why an individual may want to apply for a new line of credit, including purchasing a new vehicle, opening a credit card, or getting a payday loan. Protections exist for military members when it comes to predatory lending practices, but they are still common near military bases and in less-than-reputable companies that market their services to the military community.

The Military Lending Act limits the fees that can be charged to servicemembers, but it does not apply to purchases where tangible property acts as collateral for the loan. There are predatory lenders out there that will increase interest rates purely to drive a profit. If you’re interested in buying a new or used car, ask around at your base (or check the off-limits list online) to see if there are any blacklisted dealerships that you should avoid when making your purchase.

The Military Lending Act does apply to credit cards and payday loans, and limits what a lender can charge in interest and fees. However, it doesn’t stop some companies from trying to charge more than they are legally allowed and scamming the service community out of their funds. Be aware of any company that guarantees credit or loan approval or doesn’t require a credit check – and check the fine print for fees. The Military Lending Act caps fees at 36%.

Romance or Friendship Scams

This type of scam involves a scammer posing as a friend or romantic interest and then pretending to have some sort of crisis that involves a great deal of urgent financial need. The scammer then brings their story to the servicemember or veteran and asks for help in the form of a loan. Often the crisis involves the scammer needing money to pay their rent to avoid eviction or to pay child support to avoid legal action, though “romantic interests” may ask for funding for a plane ticket or vehicle repairs (so they can come visit) – but instead of the need being legitimate, the scammer pockets the money and disappears.

Don’t wire funds, send prepaid debit cards, or otherwise provide money to anyone you have met on a dating app or a “friend” whom you haven’t met in person who is reaching out by phone, email, or text message. If you receive a request for money that seems to be from someone you know, contact that person independently to confirm that the request is legitimate before you act on it.

Family Emergencies

Scammers may target a servicemember’s loved ones – often a grandparent – and tell the loved one that the servicemember has been in some sort of accident, been arrested, or experienced some other emergency and explain that the grandparent needs to provide immediate funds for the servicemember to help them get out of trouble. Typically, the scammer pressures the grandparent to wire funds, use a payment app, or send gift card redemption codes while on the phone. They may threaten legal action if the loved one does not comply.

The call comes out of nowhere and is from someone who claims to have witnessed the emergency, is also related to the servicemember, or is somehow affiliated with the legal system, and the scammer insists that sending funds is the only way to provide help. Family members should be on alert for suspicious phone calls and hesitant to take any action. Family members should reach out to the servicemember directly and refuse to provide any payments or personal financial information over the phone.

Veterans Services and Disability Claims

There are organizations that exist that charge veterans for help with filing VA disability claims. In many cases, this is a predatory practice and these organizations are violating the law by charging for these services. An individual or organization that is truly accredited by the VA to assist with claims cannot charge for the initial claim. Further, these “claim sharks” may guarantee a specific disability rating, request a veteran’s login credentials for VA.gov, require veterans to sign contracts in order to receive services, and advise veterans to skip VA medical appointments. These actions could have negative consequences on the veteran. There are situations where it is appropriate to pay an attorney for an appeal of a benefit decision, but most veterans can receive assistance with their claims free of charge by working with an accredited representative.

Other organizations may charge money for access to records that are provided by the government for free. A servicemember or veteran who wants access to their own VA records or military service records should contact the VA or National Archives directly.

Individuals who desire help filing a claim with the VA can use the VA’s Accreditation Search feature to find accredited attorneys, claims agents, and Veterans Service Organizations and representatives. If an individual or organization is not listed within the search, veterans and their loved ones should immediately cease working with them and provide no further personal information. If you need help filing a claim with the VA, Navy Mutual is an accredited Veterans Service Organization and we provide these services to veterans, survivors, and family members free of charge.

Phishing Scams

Individuals inside and outside the military community are susceptible to financial phishing scams. These scams typically involve either a phone call, email, or text message that claims to be from a financial institution (like a bank) or a federal agency (like the Social Security Administration or IRS). Typically, there is a “notice of payment due” and a link that allows the individual to “pay” their bill or verbal pressure demanding that the recipient immediately provide banking or credit card information. In written communication, there may be grammatical or spelling mistakes that can indicate the presence of a scam.

Be suspicious of unsolicited contact. Check the email address or phone number that is reaching out and do a web search to determine whether the email address or phone number is actually affiliated with the company it claims to be. Don’t click on any link (either on your phone or in an email) that you don’t expect or recognize. Further, when it comes to government agencies, the IRS will always get in contact via postal mail – they will not call, text, or email. The Social Security Administration typically gets in contact via postal mail, but they may call in some circumstances. However, they will not require payment or request any banking information. If you receive a call from someone claiming to be your bank, say that you will call back – and then use the phone number listed on the back of your credit or debit card to get in touch.

What to Do If You Suspect a Scam

The best thing that you can do if you receive a phone call, email, or text message that feels suspicious, is to take a breath. Nothing is so urgent that you need to act now. Don’t click any links or download any attachments. Often, all that needs to be done is for you to delete the correspondence, block the sender, and report the communication as fraud. If the correspondence referred to a specific organization and you want to confirm that no action is needed, call the organization directly using a publicly available phone number. If the correspondence claims that an emergency happened, verify the event with the parties who are supposedly involved. Try not to let yourself panic – this is what scammers want.

If you’ve been targeted by a scammer – successfully or unsuccessfully – you can report the fraud to the Federal Trade Commission online. You can also talk to your command (if you’re on active duty) and let them know what happened for the purpose of warning others, especially if the scam occurred in person at a local organization. Your local Legal Assistance Office or police station may also be able to provide guidance.