As an active-duty servicemember or military Veteran, you are our nation’s most valuable resource. Unfortunately, your military service can make you the target of financial scams. The American military community is especially susceptible to fraud because of steady incomes, frequent relocation, and chances of deployment.
To avoid being taken advantage of, you must be aware of the most common scams that focus on military personnel and Veterans. Learn how you can avoid these with insight from the military financial professionals with AAFMAA Wealth Management & Trust LLC (AWM&T).
Fake Rental Properties
PCSing can be difficult on the easiest of days, so beware of getting scammed while relocating. Bad actors pose as real estate agents on the web, targeting military servicemembers who are looking for rental properties near their new bases. Many promise discounts or other incentives to military personnel. They then attempt to get servicemembers to send them fees and security deposits up front.
Unfortunately, the rental properties these scammers offer aren’t real. After forwarding their payment to the scammers, military personnel are left with little money and no place to live in their new assignments.
Generally, any out-of-the-blue offer in exchange for advance online payments is questionable at best—and there’s a high chance it’s actively malicious. It’s never a good idea to forward money to an entity you aren’t familiar with. Recognize that as a near-foolproof sign of a scam in progress.
Phishing Schemes
Some scammers attempt wholesale identity theft on military servicemembers by posing as a legitimate government agency, such as the U.S. Department of Defense’s accounting office. They contact active-duty servicemembers and claim their information was lost by accident. Many of these messages contain malware that steals your passwords and other account details.
Know that no authentic government agency or organization will ever ask you to forward your personal information over the phone or online. Similarly, no legitimate company will ever ask you for financial or online information. Make it a policy to keep those details to yourself in all cases.
Credit and Loan Scams
Servicemembers are particularly vulnerable to those who prey on their military status to offer high-cost loans or credit cards. Many new active-duty military personnel have no credit histories, so they’re targeted by both fraudulent and legitimate companies that make “incredible offers” to those with bad or no credit.
The rule of thumb in this situation is to immediately disavow any party that promises financial benefits regardless of your credit history. They may say you’ve already been approved, but that you need to send cash before your account is activated. They may also be reluctant or unable to disclose all the fees they’ll charge, which a legitimate business will never do.
Charging for Military Records
Some identity thieves set up websites that offer military personnel and their families access to their service or medical records for a “small fee.” However, this kind of information is typically available to servicemembers for free. The government does not charge any processing fees for access to your records.
You can always request access to your personal and medical information through the National Archives. Never agree to make payments without full transparency.
VA Benefits Fraud
Similarly, scammers may pose as investment advisors who claim military personnel are eligible for Veterans Affairs (VA) or disability benefits. They may even offer benefits in exchange for information about your investments, future pensions, or disability claims. Some fraudsters claim they’ll help you file for disability claims.
Your state’s regulatory agencies will confirm the legitimacy of investment advisors and financial planners. Always check with them to question any solicitors you have doubts about, and consider parties who make unrequested offers to be suspicious by default.
Guard Against Military Personnel Fraud
It’s an unfortunate part of military life that malicious parties take advantage of those who want to serve our country. With that in mind, make sure to thoroughly check out military-targeted offers that sound too good to be true—because they probably are. Talk to your superiors or accredited military organizations for help in avoiding these scams.
AWM&T exclusively serves military families just like yours. We’re here to deliver the wealth management solutions and the specialized financial advice you need and deserve. To get in touch, call 1-910-307-3500 or click here to speak to a professional. Learn more about us and your options on our website.
About Us
AWM&T was created in 2012 to meet the financial needs of military families. We provide experienced, trustworthy, long-range financial planning, investment management, and trust administration services to support financial independence and security. We aim to be the premier provider of fiduciary services by always working for AAFMAA Members’ best interests.
We are proud to share the mission, vision, and values of AAFMAA, our parent company, consistently building on AAFMAA’s rich history and tradition to provide Members with a source of compassion, trust, and protection. Through AAFMAA’s long-standing legacy and our financial expertise, AWM&T is honored to provide personalized wealth management services to military families across generations.
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