My father is a US Army veteran of World War II, serving in the infantry division that fired that last shot in the European theater. Amazingly, at 94 he still actively participates in life. There are, understandably, challenges in helping him navigate the ever-changing currents of modern life. But the most shocking challenge is that posed by financial scams targeting veterans.
According to an AARP-commissioned study:
- 16% of veterans lost money, over the past 5 years, as the result of fraud, which is twice the percentage of non-vets.
- 80% of vets report being targeted, in the last 5 years, by a scam that is veteran-specific.
- 33% of those who have lost money as the result of investment fraud are veterans.
- 25% of veterans report receiving at least 10 suspicious calls per week relating to finance.
Fraudulence targeting ex-military takes a number of forms:
- Vets are induced to borrow against future pension payments, at exorbitant interest rates. Widowers and widows of service personnel are particularly vulnerable to this tactic.
- The “mimic phone line” con, in which a phone number very similar to an actual veterans hotline number is used to induce callers to reveal personal financial information.
- Mortgage holders with loans backed by the Veterans Administration are targeted to refinance, incurring unnecessary fees and, at times, higher interest rates.
- The benefits racket, in which a scam artist signs vets up for legitimate benefits, but pockets the benefit dollars.
- Investment fraud in which a veteran uses that status to gain the trust of a fellow vet to perpetrate fraud.
If you are veteran, or a trusted advisor of one, you can learn more about how to protect against fraud through Operation Protect Veterans (www.aarp.org/protectveterans). This national campaign was launched in November 2017 as a combined effort of AARP and the U.S. Postal Service.
Finally, it is important to be very aware of the fraud that can occur involving charities with a veteran focus. Convictions have occurred for the embezzlement of money from legitimate charities. Other charities have been exposed for the misuse of donor funds for personal extravagance and salaries by charity executives. The egregious abuse by organizations that exist for the sole purpose of conning veterans into donating. For example, the U.S. Navy Veterans Association was a bogus charity that raised nearly to $100 million. Vets should always research donee organizations on Charity Navigator (www.charitynavigator.com), and consult with your financial advisor before making any large money decisions.
Resource: Under Fire: Military Veterans and Consumer Fraud in the United States
