BBB Tip of the Week: Scams targeting military veterans

As we take the time to honor veterans this week, it is important to protect them from scammers who target those in the military community. Better Business Bureau serving the Northwest appreciates our veterans and their families and works to protect them from being the victims of scams.

Here are some of the more common scams involving military members and their families:

Update military file: A caller claims to be from the Department of Veterans Affairs and asks to “update” your information, but the person really is hoping to get personal information to be used to steal your credit or benefits.

Cash for benefits: Scammers target veterans in need of money by offering cash in exchange for their future disability or pension payments. These buyouts are typically a fraction of the value of the benefit. Not only is this a financial rip-off, it could also lead to losing eligibility for benefits like Medicaid and other assistance programs

Phony veterans programs: This scam targets the Veterans Choice Program for military members. There is a toll-free number to call to verify eligibility. Scammers have established a fake phone number similar to the official phone number with a message instructing callers to leave their credit card number to receive a rebate.

Impostor scam: Some scammers call or email the families of service members claiming their son or daughter is injured or wounded overseas. Often they ask for a wire transfer to cover medical bills. BBB advises consumers to never transfer money by wire, as there is little to no way of getting the money back.

Military loan scams: Watch out for “too-good-to-be-true” loan offers that promise deals such as “up to 40 percent of your monthly take home pay,” “same-day cash,” “no credit check” or “all ranks approved.” These offers can come with extremely high interest rates and hidden fees that can damage financial security. Another approach taken is a caller offering to refinance a VA loan who then asks for upfront fees and never comes through with the promised loan.

Real estate scam: Scammers know that military members and their families move from base to base across the country, so this makes them easy targets for rental scams. They lift the descriptions of legitimate rental properties and rewrite the post so it offers a special discount for service members. Depicting a too-good-to-be-true offer, they ask for a security deposit to be wired in advance to ensure their occupancy. But often, the individual or family arrives at the rental property only to find it already occupied.

Service members who have been a victim of fraud are encouraged to report their experience to BBB Scam Tracker. Another resource for military consumers is the BBB Military Line. This outreach program focuses on educating service members about financial literacy and consumer protection tips for military communities.