How scammers are exploiting veterans and impersonating supporting charities
The Better Business Bureau (BBB) is warning the nation’s 18 million veterans about a new scam targeting their money and identity.
These latest schemes are designed to exploit veterans and those donating to military charities, especially around Veterans Day.
“Scammers attempt to con former service members through phishing, vishing, and social media scams,” said Steve Bernas, BBB president and CEO. “This year, the Department of Veterans Affairs is pointing to ‘gaming fraud,’ a new concern affecting veterans.”
The Consumer Finance Protection Bureau reports consumers in general spent nearly $57 billion on gaming in 2023. However, Veterans Affairs says “scammers have chosen to target veterans and their gaming activity.”
The most common mechanisms are:
• Credit card fraud: Credit card details are stolen and used illegally.
• Account hacking and takeovers: Hackers gain access to financial information, personal details and contact lists.
• Affiliate fraud: Gamers paying out rewards to nonexistent players.
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 offer veterans in financial need cash up front 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 Veterans Affairs office.
• Impostor scams rank in the top five scams impacting former military personnel. Scammers will pose as vets themselves or pretend to represent organizations supporting veterans.
• In a phishing scam, they will impersonate someone from Veterans Affairs and ask for personal information such as Social Security numbers, saying they need to update the veteran’s records.
• The con artist, sometimes posing as soon-to-be-deployed service members, offer special deals for veterans on cars, electronics, and other products. They will want payment made by wire transfer (Western Union or MoneyGram). Once they get the money, the seller disappears, and the goods never arrive.
• Acting as rental agents fake classified advertisements for rental properties are placed with discounts for veterans and their families. Targets are instructed to wire money for a security deposit for what turns out to be a nonexistent property; or properties currently occupied by the owners.
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.
• Be wary of excessive pressure in fundraising. Don’t be pressured to make an immediate on-the-spot donation. Legitimate charities will welcome your gift whenever you want to send it.
• 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. Sign up for BBB’s free consumer newsletter, BBB Edge, at BBB.org/ChicagoBuzz. Visit BBB.org or follow @ChicagoBBB on social media. Look for the BBB seal, The Sign of a Better Business.