Service men and women are often targets of scams and those typically peak around Veteran’s Day each year.
The Consumer Sentinel Network reports that during 2015 there were 98,669 complaints from military personnel that they were targeted for financial crimes.
Alaska Regional Manager Michelle Tabler with the Better Business Bureau detailed the recent scams seen.
Tabler: “Bogus sales to deployed members, Craigslists lists that aren’t real listings for people who are changing locations in the military and they’re going on Craigslist to find off-base housing, fake charities come up now. We’re also seeing one on mortgage refinancing where they’re promising better interest rates for veterans and military before they’ve actually even gotten an application.”
She says many of these scams come in the form of phone calls where the caller pushes victims to make quick decisions or threatens action if money is not paid. Tabler suggests always just to hang up in those cases.
Another scam venue is via email…
Tabler: “You should never click on any emails that are unsolicited even if it looks like it is from your bank or credit card or cell phone company, just go directly to their website.”
The BBB’s Ways to Protect Yourself From a Predatory Loan Scam:
Mortgage refinancing is not the only loan scam targeting service members, veterans, and military families. Use caution when evaluating auto loans, student loans, and short term “payday” loans.
- Don’t pay for the promise of a loan. It’s illegal for companies doing business by phone in the US to promise a loan and require payment before they deliver. All advance fee loans are illegal in Canada.
- Investigate claims that it’s a government program. Scammers increase their credibility by connecting themselves to official or trustworthy institutions. Do your research and contact the government or your loan servicer first.
- Legitimate lenders never guarantee a loan in advance. Real lenders will check your credit score and other documents before providing an interest rate and/or loan amount.
- You are pressured to make a decision immediately. Phrases like “act fast” or “limited time offer” should be red flags indicating a possible scam. Scammers hope that time pressure makes victims more likely to make costly mistakes. Some legitimate companies use this sales technique, too, but you should never feel pressured to make a snap decision about something important.
- Legitimate lenders don’t pressure you to pay via wire funds transfer, prepaid debit cards, or gift cards. These services are like cash. Once it leaves your hands, it is very difficult to trace and almost impossible to reverse.