Avoiding Scams While Serving

Serving your country requires a variety of personal sacrifices, one of which is a higher risk of being targeted for scams. While most people respect the sacrifices associated with military service, scammers seize upon the special vulnerabilities attached to both active and former military personnel.

With that in mind, let's take a look at why scam artists often look to the armed services when choosing targets and how you can protect yourself and your family from these predatory schemes.

Why The Military is a Target-Rich Environment for Fraudsters

Military personnel are often targeted by scammers and unscrupulous businesses looking to take advantage of their steady paychecks and benefits. Falling victim to these scams can have severe financial and personal consequences, undermining the hard work and sacrifices made while serving your country. 

Military personnel make inviting targets for several reasons. First, scammers know servicemembers have a regular source of income. This fact makes them a ripe target not only for identity theft and other forms of outright fraud but also for activities that fall into legal gray areas, such as predatory lending.

Military personnel must also deal with a mobile lifestyle that often includes deployments. This fact can make staying on top of household financial issues a challenge, as can communication between family members - two things scammers won't hesitate to exploit.

Finally, servicemembers eagerly search for opportunities to build new careers when military careers are nearing an end. The challenge of starting a civilian career can create vulnerabilities that scammers exploit as they seek to take advantage of military personnel who are urgently pursuing new options – ranging from business opportunity scams to expensive for-profit education programs.

Common Scams

To avoid scams, it's crucial to be aware of the ones most commonly faced by military members. These include:

• Affinity Scams - Scammers may pose as fellow veterans or members of military-related organizations to gain your trust and get you to invest in fraudulent schemes.

• Pension Advance Scams - Companies may offer upfront cash in exchange for your future pension payments, often at extremely high interest rates and with hidden fees.

• Rental Scams - Scammers may post fake rental listings targeting servicemembers, often requiring upfront payment for properties that don't exist or aren't actually for rent.

• Identity Theft - Scammers may steal your personal information to open credit accounts, take out loans, or commit other forms of fraud in your name.

• Predatory Lending - Some lenders may target servicemembers with high-interest loans, such as payday loans or car title loans, which can trap borrowers in a cycle of debt.

While it's hardly fair that service to your country opens you up to greater financial risk, there are some steps you can take to protect yourself.

How to Protect Yourself 

The best defense against many scams, especially identity theft, is safeguarding your personal information. Be cautious about who you share personal details with and how. Keep your social security card, military ID, and other vital documents secure. And be wary of unsolicited emails or texts asking for personal or financial details, even if they seem to be from legitimate organizations. Real banks, government agencies, and other reputable institutions won't request this information via email or text.

A common rule of thumb is never to pay money for the promise of more money. Be skeptical of any situation where you're asked to pay upfront fees or transfer money to unknown individuals or entities. This step is particularly true for unsolicited offers, whether they come via email, text, or even snail mail. Other tips for avoiding scams include:

• Monitor your accounts online as frequently as possible, looking for unauthorized charges.
• Check your credit reports at least once per year for free at the government-mandated AnnualCreditReport.com website.
• Consider an "active-duty" alert on your credit report, a free service for military members that can reduce the risk of identity theft.
• If you are exploring hiring a financial advisor, verify their history and reputation before allowing them access to your accounts.
• Consider signing up for a credit union that caters to the military.

Military members should also take advantage of the numerous free and discounted services that outside organizations offer. The Office of Financial Readiness and Military OneSource provides financial counseling services, while the Consumer Financial Protection Bureau's Office of Servicemember Affairs provides information about common scams targeting military members. Additionally, you can report scams to your superior officers, the local military police, or the Federal Trade Commission.

Finally, remember that all servicemembers are eligible for an emergency relief fund loan. These small, interest-free loans can be invaluable in an emergency (and for avoiding scams).

The Takeaway

Serving in the military is a noble undertaking. Unfortunately, it can also expose one to heightened financial risks. 

By staying informed about common scams, being cautious with your personal information, and seeking guidance from military resources when needed, you can protect yourself and your finances from those who seek to take advantage of your service.

Remember, if an offer seems too good to be true or pressures you to act quickly without time for research, it's likely a scam. Trust your instincts, and don't hesitate to seek help if you suspect fraudulent activity.