BBB Warns of Scams Targeting Veterans

In honor of Veterans Day the Better Business Bureau has put out a warning to veterans and those who care about them to be on the lookout for scams specifically targeting this sector of the population.

According to a press release from the BBB, veteran scams can take many forms. Here is a list of some to be be aware of to avoid letting veterans become victims of fraud, paying more for items than they should or identify theft. Share this information with veterans or families of veterans that you might know.

Types of Scams:

• 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.

• 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.

• Be wary of bogus charities with names that reference the Armed Forces and seek donations.

• 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 Loans: 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: 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.

• Cars: 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.

• 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.

What to do?

BBB has the following advice to avoid being a victim of one of these scams.

• Protect Finances: Never wire transfer money to strangers.

• Check Companies and Charities: Research companies at www.bbb.org for free BBB Reliability Reports or Charity Review Reports.

• Defend Computers: Avoid visiting unfamiliar sites or opening e-mails from unknown senders. Install a firewall and updated anti-virus software.

• 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.

• Report Scams: File complaints with BBB, www.bbb.org, the FTC, www.ftccomplaintassistant.gov, or the Internet Crime Complaint Center at www.ic3.gov.

What We Can Do:
For those of us at home, 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.  If they do not provide the information, 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.

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 your state veterans affairs agency.You can report suspicious e-mails and online scams to the FBI at their  online complaint center.

BBB Military Line:
BBB offers our military personnel information and help.   Since 2004, BBB Military Line has provided free resources to our military communities in the areas of financial literacy and consumer protection through the efforts of 164 BBBs across the U.S.  Military personnel may access information at http://www.bbb.org/us/Military/.