Numerous scams often target military members due to their consistent paychecks and many troops being young and financially inexperienced. From predatory lending to online scams, it's important for service members to learn how to protect themselves from being taken advantage of. Here are 9 scams every military service member needs to be aware of.
Fake accounts are being created on social media platforms such as Instagram and Twitter, where scammers often impersonate military personnel. They will then friend military troops and begin building a relationship through direct messaging. Eventually they will claim they can make you quick money by depositing money in to your account and in exchange you just send them a fee. They will ask for personal banking information such as your username, password, bank card number, and pin. Once the information is exchanged they deposit fraudulent checks and withdraw the cash, leaving you without money and possibly liable for the losses.
2. Rental Housing Scams
Scammers will post fake rental properties on classified websites in areas around military bases and communities targeting troops. Service members moving in to the area will be offered fake military discounts and be asked for a security deposit by wiring money to the landlord.
3. Military Loans
Military car and personal loans that require no credit check, have instant approval, upfront fees, or promise guarantees are highly likely to have hidden fees and terms that take advantage of service members, leaving them with crippling debt.
4. Veterans' Benefits Buyout Scam
Military veterans hard pressed for cash may be lured into this buyout plan offering a cash payment in exchange for their future disability pension payments and benefits. However, these payouts are only about 30 to 40 percent of what their value is and structured in ways harmful to veterans' finances.
5. Car Purchase Scams
Using websites that offer classified ads, scammers will create car ads targeting military members. They will pretend they are a service member who is being deployed or moving because they are being stationed somewhere else and need to get rid of their car quickly. They will ask for wire transfers or up front fees and will offer fake claims such as free shipping or discounts.
6. Employment Scams
Veterans and active duty members searching for jobs may come across employers who offer special consideration for their military service. Be wary of employers asking for personal information such as bank account numbers or that want to conduct a credit or background check. Some are scams that use your personal information to steal your identity and/or expose you to fraud.
7. Jury Duty Scam
Military members will be targeted by callers who claim they work with the court system and tell the service member has a warrant out for their arrest due to not showing up for jury duty. Fearing they can get in trouble by their command, the caller says it can be taken care of by providing personal information such as a social security or credit card number.
8. Veterans Affairs Scam
Military veterans are being targeted by phone scammers who call claiming they work for Veterans Affairs and say they need to update their information with the VA. The VA never calls and asks for your private information by phone.
9. Military Life Insurance Scams
Hard sales tactics are used by agents who target military members. They will make false and inflated claims about life insurance policy benefits which are expensive and most likely unnecessary.
Learn how to protect yourself!
To help military members and their families the Better Business Bureau has created a BBB Military Line to educate service members on how to protect themselves. Be sure to follow their Facebook page to keep up to date on all current scams and ways to protect yourselves.
(Note: The BBB has put out a warning about scammers trying to take advantage of the military and veteran community during Memorial Day weekend. Read how you can protect yourself.)