Two Financial Scams Are Targeting Veterans Right Now—Experts Share How to Protect Yourself
From phishing to shady fees, here's how to protect yourself from fraudsters preying on vets
From phishing attempts to shady business practices, schemes that could drain veterans’ bank accounts are making the rounds. The good news? Experts say spotting the red flags is easier than you think, and a few simple steps can keep money from getting into the wrong hands. Keep reading for a breakdown of the latest veteran scams and how to ensure you or a loved one who has served stays safe.
The 2 scams targeting veterans right now
The phishing scam: Fraudsters claim you owe the VA money
During the holiday season, it’s common to see an uptick in phishing attempts, and a recent scheme has been increasingly targeting veterans, prompting the Department of Veterans Affairs (VA) to share a warning online.
Here’s how the fraudsters operate: They use various communication channels to tell veterans their benefits were overpaid and they must give that money back. If they don’t, there could be serious consequences.
Though this seems easy enough to dismiss as a phishing attempt, it’s a bit more complicated. There may actually be instances in which the VA overpays you, which makes it that much easier for the scammers to dupe their victims.
“The VA will absolutely ask for money back if they’ve overpaid you,” explains Paige Hanson, co-founder and cyber safety expert at SecureLabs. “That’s why threat actors are so effective in their phishing scams because it’s technically a letter you may get if they’ve overpaid. The scammers are impersonating the VA and using fear and urgency to trick veterans into paying money they don’t owe.”
Criminals are also using fake VA letterheads and logos in their emails and letters to appear authentic. According to the VA, some have even gone so far as to create spoofed phone numbers that are designed to instill trust.
The hidden fees scam: Companies charge vets for free services
Another shady practice that is becoming far too prevalent? Companies charging veterans for assistance with filing disability claims. This issue has become so serious that 43 members of Congress are calling for action against these companies, reports NPR.
“For years, we have warned that unaccredited representatives—commonly known as claim sharks—charge illegal fees, misrepresent their services and exploit a loophole in federal law to escape accountability,” the Congressional group wrote in a letter addressed to the VA, the Federal Trade Commission and the Consumer Financial Protection Bureau. “These practices represent a deeply disturbing escalation in claim shark industry tactics.”
These seemingly helpful companies are preying upon veterans who don’t realize they don’t need to pay for these services.
“Filing is free through the VA and accredited Veteran Service Organizations (like DAV, VFW, American Legion),” says Hanson. “Paying a third party doesn’t speed up or guarantee approval.”
Federal law states that it’s illegal to charge for that assistance, but a loophole has allowed for the sketchy business practice. Criminal penalties for violating the law were removed in 2006, so plenty of companies have continued to charge fees for something that should be free.
How to protect yourself and the veterans you love
Spotting fake VA overpayment demands
Like other phishing scams, this overpayment of benefits scheme is designed to dupe unsuspecting recipients and encourage them to act quickly.
“It is easy for anyone to become a victim of phishing schemes because these scammers are trying to mimic requests for information from organizations that may sound like credible sources, but many times they are taking advantage of busy people who are not fully reading or understanding what the email is asking,” explains Nancy S. Jones, PhD, associate professor in the Department of Cybersecurity and Technology at National University.
For that reason, one of the best defenses against phishing scams like this is to avoid responding to an email that is asking you for financial or personal information. There are red flags to watch for too, according to Jones, such as:
- Spelling and major grammatical errors in the email body
- Multiple unknown addresses listed
- Messages being sent from unknown or unsolicited sources
Since scammers are trying to make the communication seem like it’s coming from the VA, however, it may be tougher to tell it’s a phishing attempt. When in doubt, get confirmation elsewhere.
“It’s a good reminder that the VA will never demand repayment through unsolicited calls, texts or emails,” adds Hanson. “Instead, log into your VA.gov account and check the official letter to confirm it’s real or not.”
Sidestepping illegal disability claim fees
Though members of Congress are trying to make it harder for businesses to take advantage of disabled veterans, it could take some time to see legislation that curbs these shady practices.
In the meantime, knowing exactly where to get assistance with filing a claim can ensure you aren’t giving away the money you’re entitled to.
“If you’re searching online for help, type the official website directly into your browser,” suggests Hanson. “Paid ads often rank higher and can make third-party companies look more credible than they are.”
By going to the official website for the VA and accredited organizations, you can ensure you won’t be paying surprise fees—and that you or the veterans in your life get every benefit that’s been earned.
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