BBB alert: Scammers see opportunity in new veterans program

On Veterans Day, we thank military veterans for their sacrifice and service, protecting us and our country.

Unfortunately, the Better Business Bureau says con artists will target many of the nation's more than 19 million veterans. A year after the PACT Act was signed into law, scams targeting veterans and their PACT Act benefits are on the rise and have become a major focus of con artists. The law provides health care benefits to veterans who were exposed to hazardous materials during their service. Scammers see this beneficial program as an opportunity to line their pockets.

Con artists are targeting veterans through phishing, fake phone calls, and social media scams. According to the U.S. Department of Veterans Affairs, scammers promise veterans they can get them increased financial assistance or greater services.

"There are about 19 million U.S. military veterans and that's a significant target for scammers," said Steve J. Bernas, president and CEO of the Better Business Bureau. "In addition to the PACT Act scams, there are also vet-oriented twists on identity theft, phishing scams, impostor scams, and investment and loan deceptions. No matter the scam, the goal is to get access to the benefits the government provides to the veteran's accounts."

To avoid becoming a victim of a PACT Act scam:

• Don't sign a contract with an unauthorized company agreeing to provide a portion of your benefits to help file your claim.

• Don't sign a blank form for someone to complete later.

• Take precautions to avoid companies that claim they have special access to government and medical officials.

• Don't provide your social security number, medical information, or any personally identifiable information to anyone that you have not personally contacted.

• For free assistance contact the VA at VA.gov/PACT.

Other scams impacting veterans include:

• Veterans get a call and are told they qualify for money from "secret" government programs but must first pay a fee or provide personal information.

• Scammers exploit veterans in financial need by offering them cash upfront in exchange for what they say will be a higher future disability or pension payment, all at a cost.

• Con artists attempt to charge veterans for access to their military records or government forms. All of those are free from the local VA office.

• In a phishing scam, they will impersonate someone from Veterans Affairs and ask for personal information, saying they need to update the veteran's records.

• The con artist, sometimes posing as soon-to-be-deployed service members, offers special deals on cars, electronics, and other products for veterans. They will want payment made by wire transfer (Western Union or MoneyGram). The seller disappears once they get the money, and the goods never arrive.

• Acting as rental agents, fake classified ads for rental properties are placed with discounts for veterans and their families.

"The scam list is long, but the warning signs are those most of us know ... or at least should," Bernas said. "They are the same signs that tip us off to the IRS or Social Security card scams. Like all other government agencies, the VA never calls to request personal information such as your Social Security number. The VA will never ask for personal data by text or email either."

Another red flag that you may be dealing with a scammer is if you get an unsolicited high-pressure fundraising call from a veterans charity you have not previously supported or had any contact with. If you plan to donate to a military-affiliated charity, here are some tips on how to avoid being scammed:

• Watch out for charities that sound similar to more well-known ones. Many fake veterans charities include the same words in different order or form, to appear legitimate.

• Look for a clear description of the organization's programs in its appeals and on its website. If the charity says it's helping veterans, does it explain how (financial assistance, shelter, counseling) and where it is doing so?

• Telemarketing can be a costly method of fundraising unless carefully managed. If called, do not hesitate to ask for written information on the charity and its finances before making a decision.

• Before giving, check first for free with charity monitoring services like BBB's Give.org.

• There are many actions veterans can take to protect themselves and their families from being ripped off, but the two most important are "think before you act" and "verify then trust."

If you've encountered a scam, report it to BBB Scam Tracker. Your report exposes scammer tactics. Sign up for BBB's free consumer newsletter, BBB Edge, at BBB.org/ChicagoBuzz.