How Service Members & Veterans Can Prevent Identity Theft Scams

As society moves to a more online way of life, cases of identity theft have risen dramatically in recent years. Service members and veterans have been particularly hard hit because they face some unique challenges when protecting their sensitive information and balancing it against their military lifestyle.

For example, in 2021, the Federal Trade Commission reported 50,000 service member and veteran identity theft cases covering a broad spectrum of abuses. This included fraudulent access to government benefits, credit card fraud, inappropriate access to bank accounts, and loan, lease, and utility services fraud. 

A similar report by the FTC also found that active duty service members were 22% more likely than civilians to have experienced identity theft when their stolen information was used to open a new credit card or similar account. That same study also found that service members were 76% more likely to report identity theft from misusing an existing account. 

A 2021 AARP survey confirmed those findings with the stat that service members are 40% more likely to lose money than their civilian counterparts when victimized by similar scams and schemes.

Why service members are frequently targeted for identity theft

Scammers specifically target service members for a variety of reasons, some of which include:

Military members typically move every two to three years as part of a permanent change of station. Frequent relocations mean more use of personal identity information, including bank accounts, Social Security numbers, birth dates, and other similar types of information.

Frequent moves also make it more difficult to spot the early warning signs of identity theft.

Large-scale data breaches also take place at government agencies. The potential for massive amounts of private information that can extend to hundreds of thousands of people and millions of records makes the potential for a lucrative payoff using or selling this information extremely tempting. 

In addition, service members often share information through their DD214. Although the Department of Defense and Veterans Affairs have done away with using Social Security numbers in recent years, the threat of a data breach still exists.

Another challenge is that service members can be deployed for significant lengths of time, meaning they don’t always have immediate access or the ability to review their bank accounts, credit card statements, and other financial information. 

While banks and other financial institutions are responsible for protecting all consumers and service members from identity theft and related fraudulent activities, they can’t always accomplish that mission, meaning service members must also do their part to protect their personal information from misuse.

Part of the problem is that there are so many ways identity theft can take place. The first step in protecting yourself is knowing how you may become a victim.

Once you become more knowledgeable in how thieves work, you’ll be better equipped to ensure you don’t become a victim.

Finally, scammers also rely on false claims of shared military service to gain trust when they reach out to active duty service members and veterans. They understand that the brotherhood among military men and women is a bond that can be used against them when trying to steal from them.

Crooks are often experts at using military language and a working knowledge of government guidelines to lull victims into a false sense of security as a way to get them to share their information.

Common Identity Theft Scams

As law enforcement catches up to identity theft criminals, scammers will often figure out new ways to try and prey on unsuspecting victims. However, there are several common identity theft and fraud scams you should know about.

Credit Card Theft

When a thief gets your credit card information, they can use it to run up thousands of dollars in charges before you become aware of fraud taking place against you. Similarly, with your Social Security number, birth date, and other related data, thieves can open up accounts in your name and run up massive bills, potentially wrecking your credit, which can have a ripple effect on your FICO score, ability to find a rental property or purchase a home, get loans and lines of credit, and other similar transactions.

Rental Property Scams

Service members looking for housing may encounter fake real estate agents who post rental property ads for properties they don’t control. They often sweeten the deal by claiming to be military-friendly or offering rental discounts.

They will attempt to reel in service members by asking them to send deposit money and fees up front, only to disappear before the service member realizes what has happened.

GI Bill Scams

One of the most important benefits veterans can take advantage of is the GI Bill. Unfortunately, scammers recognize the monetary potential for this benefit and may engage in deceptive marketing tactics where the outreach information and sales materials don’t match the experience of attending a for-profit educational institution.

However, the VA offers a comparison tool to help you find a legitimate school to maximize your benefits.

Medical Phishing Scams

Criminals may contact veterans claiming they work for the VA, asking for personal information to update their records to provide future services. It’s common for scanners to pretend to be from Tricare, focusing specifically on healthcare services for active duty service members, veterans, and their families. 

If you’ve been contacted and asked to provide sensitive personal information for either of these, double-check the request, and if you think something is wrong, call the VA at 800-MyVA 411 (800-698-2411) or Tricare’s Fraud Hotline at 877-968-7455.

Thieves may also offer free or discounted medical devices and equipment. Medical equipment never arrives after criminals give their personal information, but the scammer uses it to steal from the VA through excess or fraudulent charges.

To combat this, don’t order medical equipment over the phone unless your doctor advises you to do so, and you should hang up on unsolicited calls from people purporting to be suppliers.

Scammers may also reach out to offer deep discounts on prescriptions. After submitting an order, it never arrives, but the thief now has your personal information to use for other fraudulent purposes.

Dating and Romance Scams

Because of the transient nature of military life, service members often look for relationships on dating apps when they are new to an area. Everything looks fine on the surface, but a red flag is when the person in the profile asks for money they can use to buy a plane ticket to visit the service member.

It’s also common for the person in the profile to ask for money for other uses, such as unexpected bills, a medical emergency, or another family member who needs immediate help. 

The best way to protect yourself from this is to never give money to someone you haven’t met. If you sense that something is off, do some additional digging on other social media sites and be prepared to cut the person off if something doesn’t feel right.

Another fake relationship ploy is someone impersonating a family member who needs immediate help for a medical condition, to get bailed out of jail, or other situations where an immediate need for money is present. Sometimes, the caller claims to be from the military or an attorney acting for someone in need.

The caller may tell the family member to send money by wire or prepaid debit cards. Your best bet is to break off contact immediately and reach out to other family members to see if the situation is real. 

Fake Military OneSource Scam

Some identity thieves and fraudsters may attempt to expertly recreate or deceive service members into thinking they are interacting with the official Department of Defense Military OneSource website. You may be directed to a site that uses the one source name or logo to trick you into thinking your interactions are safe. 

Closely related to this are criminals who trick military families into believing they’re donating to a military charity. These often involve asking for money to help support disabled or wounded veterans.

If you’re unfamiliar with the charity before being asked to donate, you can verify its legitimacy by checking it out at www.CharityWatch.org or www.CharityNavigator.org.

Pension Scams

Sometimes referred to as pension poaching, this financial scam targets veterans who are contacted by financial advisors promising to help grow retirement funds or get additional benefits from the government. When a service member or veteran reveals sensitive account information, it opens the door to fraud and theft.

To protect yourself, check the VA’s database or call 855-578-5492 to verify if an attorney or financial professional is VA-accredited and authorized to submit claims.

Bogus Employment Scams

Con artists may post jobs directly targeted to veterans. Once they’ve acquired the sensitive information that’s usually needed to run background checks for job applicants, they will shut down the job listing and use the information they’ve acquired to make life extremely difficult for the impacted service member.

Debt Collection Scams

Scammers may try to reach out and pose as debt collectors for old debts you never really owed. They may apply time-sensitive pressure tactics to immediately force a service member or veteran into paying the imaginary debt.

Once they have payment information in hand, these phony collectors will disappear, often never to be heard from again.

These just scratch the surface of how criminals can commit identity theft and fraud on service members and veterans. Numerous ploys involve payday phishing, buying or leasing cars, applying for a credit card or personal loans, and other similar situations where vulnerabilities exist.

Steps That Service Members Can Take to Protect Sensitive Information

Request a free active duty alert or security freeze if you are about to deploy. These alerts let businesses know that you are probably out of the country and that the business must take reasonable steps to verify your identity before granting new credit in your name. Active duty alerts are free.

They last for 12 months, but you can renew them for the duration of your deployment.

A free security freeze lets you freeze or unfreeze your credit files at Experian, TransUnion, and Equifax, but you must contact each separately. A security freeze prevents prospective creditors from accessing your credit file at these three companies.

Review your credit reports regularly and dispute inaccurate information. Active duty servicemembers, reservists on active duty, and members of the National Guard can also receive free credit monitoring services by placing a request with Experian, TransUnion, and Equifax.

For more information about identity theft and similar types of fraud, here are some resources you can investigate.

Military Consumer is a website run by the FTC, the Department of Defense, and the Consumer Financial Protection Bureau. It is a resource to learn more about spotting scams and safeguarding your identity.

The Department of Veterans Affairs also has fraud protection resources. To learn more about protecting yourself from fraud and how to report it, go to the website and search “Office of Inspector General.”

The AARP Fraud Watch Network provides news and information on scams through biweekly watchdog alerts. AARP also has a free Fraud Watch Network Helpline for members and nonmembers. Call 877-908-3360 to connect with trained fraud specialists and volunteers. 

AARP VOA ReST (Resilience, Strength and Time) Victim Support Program is another helpful resource for victims of fraud and their families. This peer-led virtual session addresses the emotional impact of your fraud experience.

Operation Protect Veterans is a joint program of AARP’s Fraud Watch Network and the U.S. Postal Inspection Service (USPIS). The initiative provides free resources and community programs to proactively spot scams and provide guidance from fraud specialists to help veterans, active duty service members, and families who have been targeted.

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