Consumer Sentinel Network states nearly 100,000 military members reported being targeted by financial crimes in 2014 and the Better Business Bureau says those scams peak near veteran holidays.
Alaska Regional Manager Michelle Tabler says the most prevalent type of scams are conducted over the phone.
Tabler: “They pose as people from the Veterans Administration or other types of military organizations and what they’re calling for is to phish for personal information, for example credit card information or bank account information.”
The callers may use scare tactics regarding cancelling benefits for family members to obtain those pieces of information.
Other popular scams that target veterans and service members include false real estate listings that aim to garner wire-transferred monies, or “easy” military loans that lock applicants into high interest rates.
Tabler: “They are going to target this time of year because there’s so much emphasis on military families because of the holiday coming up tomorrow. But again, we see this throughout the year when the other holidays pop up to like Memorial Day or the 4th of July.”
Phone Scams: Impostors pose as Veterans Administration employees and call veterans to request that they update their credit card, bank or other financial records with the VA. Fraudsters use scare tactics by threatening cancelation of benefits in order to collect birthdates, Social Security numbers and bank account information.
Rental Listings: Cyber thieves create bogus online rental listings and lure in potential victims by offering military discounts. Victims are asked to wire deposits and first month’s rent to “landlords” who happen to be out of the country.
Military Loans: Sketchy lenders promise “instant approvals” and no credit checks, but loans often carry extremely high interest rates and hidden fees.
Insurance Policies: Solicitors make false statements or inflate claims regarding the benefits of policies they offer, using high-pressured sales pitches to sell expensive—and often unnecessary—life insurance policies.
Individuals who are interested in donating to veteran charities are encouraged to use the BBB’s Wise Giving Alliance to check the authenticity of charities.
