Losses surpassed $338 million in five years
by Aaron Kassraie, AARP, February 13, 2020
Members
of the military, their dependents and veterans lost more than $338 million to
fraud during five years ending in 2019, Federal Trade Commission
(FTC) data shows.
Impostor
fraud was the top complaint from military families and veterans during each of
those years, but they also fell victim to scams involving online shopping,
sweepstakes and vacation time-shares, among others.
In
2019, overall fraud losses among military families and veterans totaled nearly
$92 million, an 11 percent decline from more than $103 million a year earlier,
the FTC says. Still, last year's total was a 131 percent jump from 2015, when fraud losses
suffered by military families and veterans were below $40 million.
Impostors
target victims for their money, personal data or both. They may pretend to be
with the Department of Veterans Affairs (VA) or another government entity, or
a charity, for example. Con artists also pose as romantic interests, masquerade as
friends or relatives who need cash for an emergency or claim to be offering
tech support.
The
FTC, a consumer protection agency, for years has analyzed fraud, identity theft and other consumer
complaints from what the agency categorizes as “military consumers.”
Veterans
were behind the lion's share of last year's complaints, compared to active-duty
military personnel, their spouses and children, reservists and National
Guardsmen, the data shows. The numbers are amassed by the FTC Consumer Sentinel
Network, which takes reports directly from consumers and
from federal, state and local law enforcement agencies and private partners.
One caveat: Not all complainants state whether they are service members or
veterans.
With
respect to identity theft, top complaints from military consumers centered on
credit card fraud, bank fraud, and phone or utilities fraud.
Military Personnel, Veteran Dollars Lost to Fraud
AARP
Exploiting veterans, young and old
"Younger
veterans may be looking at people that might be trying to rip them off on
things related to education, finding a job, starting a business,” says
Carol Kando-Pineda, an attorney with the FTC's Bureau of Consumer Protection.
Older veterans may face similar pitches and those for work-at-home schemes,
which lure victims with the promise of fast cash but might charge a large
up-front fee or seek credit-card information for illicit purposes.
Military
families may be particularly vulnerable to fraud because they relocate
frequently and because younger families may be living on their own or earning a
paycheck for the first time, the agency says.
"Folks
in the military are taught to depend and take care of each other,” Kando-Pineda
says. “Unfortunately, scammers will try to take advantage of them and claim
some sort of [military] affiliation to gain their trust."
Last
year's data found that the typical case of fraud was almost three times as
expensive for service members, their dependents and veterans as for the general population. Median losses were $894
for military consumers and $320 for the population at large.
Some frauds are fatal
"It's
heartbreaking scams like these and others that have caused veterans to lose
their life savings, their homes, and in some cases, they've taken their own
lives,” said Charles Wickersham, an Army veteran and inspector with the U.S. Postal
Inspection Service, the law enforcement arm of the Postal Service.
He
spoke last month during a webinar the VA hosted with the FTC.
"Many
victims, especially older Americans, are unwilling to discuss scams,”
Wickersham added. “Their own victimization can be fear of a loss of autonomy,
social standing, or just even displaying vulnerability can be a real concern in
this victim's mind."
He
cautioned that remaining silent about being scammed prolongs financial
struggles and can trigger additional emotional and physical stress.
Wickersham
noted that all veterans, regardless of gender, age, race and education level,
are targeted by scammers. “You have to harden yourself as a target,” he urged,
“and harden your battle buddy."
The
Postal Inspection Service, joined by AARP, warns that con artists are behind an array of scams,
including:
"Secret” veterans benefit scams: A
veteran is told that he or she qualifies for a government program or benefits
worth thousands of dollars. The scammer attempts to collect a fee or the
veteran's personal information.
"Update-your-file” scams: An
impostor claims to be from a government agency and attempts to gain a veteran's
personal information, supposedly to update records so the former service member
may maintain benefits. The crook just wants to steal personal information.
Pension-poaching scams: A
veteran will be offered a lump sum buyout of his or her pension. The victim
signs away the pension — but the lump sum never arrives.
Charity scams: A
fraudster poses as a representative of a veterans charity and asks for a
donation, but it's all a ruse.
Here are some ways to stay safe:
·
Don't answer phone numbers you don't recognize. Local area codes
don't necessarily mean the caller is local, since “spoofing” lets scammers
disguise what appears on caller ID.
·
Keep in mind that anyone can fabricate an official-looking
document. Verify that the sender is who he says he is.
·
You probably didn't win a contest or sweepstakes if you never
entered it.
·
Take advantage of a federal law that permits a free annual
credit check from the three big credit bureaus: Equifax, Experian and
TransUnion. Stagger your requests with a different bureau every few months to
get a snapshot of your credit file to look for suspicious or fraudulent
changes.
·
Use strong passwords and keep security software up to date on
all electronic devices.
·
Pay attention to the tactics used by scammers, who are always
going to pressure you, push emotional buttons, make you afraid or anxious, and
ask you to act fast.
·
Never pay a so-called debt or bill with a gift card. It's a
common way for a fraudster to steal your cash.
AARP’s
Fraud Watch Network can help you spot and avoid scams. Sign up for free “watchdog alerts," review our scam-tracking map, or call our
toll-free fraud helpline at 877-908-3360 if you
or a loved one suspect you’ve been a victim.
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