Scammers Target Current and Former Military Members: Here's How to Stay Safe
After 2024's Hurricane Helene swept away U.S. Navy veteran Rod Ashby's wife and newly built North Carolina home, it didn't seem like things could get much worse.1 Ashby was desperate to search for his missing wife, but his truck had been destroyed by the storm. With the insurance payout from his truck in hand, he went searching for a quick replacement.
The veteran found a website claiming to be a Colorado auto dealer selling repossessed vehicles on the cheap. Ashby had multiple phone and email conversations with the "dealer" before completing paperwork and wiring nearly $40,000 to close the sale for a new truck.
As Ashby waited for the truck to be delivered, his daughter noticed the truck was still listed for sale on the website. When she called to inquire and was told the truck was indeed for sale, a terrible realization set in: On top of all his recent tragedies, Ashby had been scammed.
Though his veteran status may not seem central to Ashby's painful ordeal, current and former military members experience a disproportionate number of fraud incidents compared to the general population. While the median fraud losses reported to the Federal Trade Commission (FTC) in 2024 was $497, that median jumped to $920 for active-duty military members, $700 for veterans and military retirees, and $855 for reserve and national guard members.2
While all financial fraud can be devastating, it is especially unjust that those who have dedicated their lives to national service are such frequent targets. Here's what veterans, active military members, and their families should know about fraud and how to protect themselves.
How Common Is Fraud Against Military Members?
Military consumers reported 999,443 fraud incidents to the FTC in 2024 with a total of $584 million in losses.2 Some of these scams are like Ashby's experience: They could happen to anyone. But one reason scammers target military consumers is to access their benefits or to exploit their absence during a deployment or other military career transition. An AARP survey found that 78% of active military and veterans have encountered a scam attempt related to their service.3
Common Military Fraud Types
These targeted stories can be harrowing: Scammers coerced a Southern California vet with untreated PTSD into sending them his disability payments through impersonation fraud.4 A Missouri man hid his uncle's death — a quadriplegic Army veteran — for five years to steal his disability benefits.5
Common types of fraud military consumers experience include:
Pension Poaching Scams
In pension poaching scams, a scammer convinces a veteran to transfer assets or add unnecessary home health care expenses to change their income to qualify for income-based pension benefits.6
How to avoid pension poaching: Veterans should consult with a Veterans Administration (VA)-accredited Veterans Service Organization representative, attorney, or claims agent before transferring any assets or adding home health care expenses to their balance sheet.7 These experts can help veterans identify signs of fraud and point them towards legitimate ways to apply for additional help if they need it.
Specially Adapted Housing Grant Contractor Scams
In a specially adapted housing grant contractor scam, contractor impostors go door-to-door offering home improvement projects to veterans with service-connected disabilities who qualify for adapted housing grants.6 Once the imposter receives the money, they disappear.
How to avoid contractor scams: Check the contractor's reviews online and, if possible, contact references to hear about their experience. If the contractor claims to be from a company, research the business and verify the person at your door is their employee. Also, read and understand all contracts completely before making any payments, and ensure all permits are correctly filed before work begins.
VA Benefits Overpayment Scams
In a VA benefits overpayment scam, a scammer sends a veteran a letter saying the VA paid them too much in benefits, and they owe money back to the VA.8 But the scammer directs the funds to be sent to themselves instead.
Military consumers reported 999,443 fraud incidents to the FTC in 2024 with a total of $584 million in losses.
How to avoid a VA overpayment scam: Log in to your VA.gov account to confirm any overpayment issues. If there is an overpayment, only make payments directly to the VA. The VA offers free help resources, will never require an upfront fee, and will never ask for your login credentials.9
Military or Military Spouse Job Scams
Military or military spouse job scams:10 There are many types of job scams, but adding "veteran preferred" or promoting flexible work for military spouses can help them target military families. Typically, job scammers are trying to collect personal information or money through a fake onboarding process.
How to avoid military job scams: Consider too-good-to-be-true job listings or a too-quick hiring process to be red flags. Never send money to a new or potential employer, whether it's to access training, pay for job supplies, as a deposit toward future earnings, or anything else. Be cautious of any hiring processes that occur entirely remotely, without face-to-face interactions.
Military Lending Scams
In a military lending scam, predatory lenders target servicemembers with "military loans," which offer quick cash or military-only perks. Victims are left to pay hidden fees, high interest rates, and abusive payment terms.
How to avoid military lending scams: Run any loan offer by your base’s financial readiness office or a trusted financial expert before committing to any financing. If you need to borrow money for purposes other than buying a house or car, talk with your local bank about whether a personal loan would be right for you.
Fake Military Rental Housing Scams
In a fake military rental housing scam, a scammer lists a house they don't own for rent near a military base to target frequently-moving military families. They say they can't show the house because they are also military and had to move quickly. They ask for a deposit to hold the rental for the victim until they arrive to view the house — and then they disappear.
How to avoid military housing scams: Use the base's housing referral office when possible to find trusted listings. Use property records and referrals to verify that the person you're working with to rent any house is the owner or property manager. Whenever possible, go to see the property in person. If you need to rent something from a distance, go through a reputable property management company.
VA or TRICARE Impersonation Scams
In a VA or TRICARE impersonation scam, an impersonator targets service members and veterans by pretending to work for the VA or TRICARE (the military healthcare program). They call, text, or email using official-looking communications and spoofed contact info claiming there is an issue to resolve, like a file to update or benefits to confirm. They ask for personal information or charge a fee to resolve the issue.
How to avoid impersonation scams: Know the VA or TRICARE will never contact you out of the blue to ask for information or money, and they will never charge a fee to manage your benefits. Never click on links or download anything from an unsolicited text. If you have any concerns about a call, text, or email you receive claiming to be from the VA or TRICARE, ignore it and contact the VA or TRICARE directly using a trusted phone number or email address — not something you received by phone, text, or email.
Imposter scams are the most common fraud military consumers reported to the FTC in 2024, with more than 44,000 complaints and a median loss of $1,110.2
Military Fraud Resources
Fortunately, there are military-specific fraud prevention and recovery resources available to help protect veterans and active service members. Available resources include:
- VSAFE.gov:11 This website includes educational resources about specific types of military-targeted fraud, a fraud prevention kit, a military fraud hotline at 833-38V-SAFE, and access to the Veterans' Crisis Line.12
- Military Consumer: MilitaryConsumer.gov is a site dedicated to financial readiness, including a financial readiness toolkit.13 14
And just like any other consumer, file a report with both the FTC and the FBI's Internet Crime Complaint Center.15 16 To further protect yourself and your finances from harm, follow the steps outlined in our article, "What to Do if You Are a Victim of Fraud."
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Important disclosure information
Asset allocation and diversifications do not ensure against loss. This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.
- Nicquel Terry Ellis, "His wife was swept away by Hurricane Helene’s floodwaters. Now he’s been scammed out of nearly $40,000," CNN, published November 11, 2024. Accessed November 4, 2025. Back
- Federal Trade Commission, "Consumer Sentinel Network Data Book 2024," published March 2025. Accessed November 4, 2025. Back
- Jennifer Sauer and Pete Jeffries, "Scambush: Military Veterans Battle Surprise Attacks from Scams & Fraud," AARP, published November 09, 2021. Accessed November 4, 2025. Back
- Kevin Ozebek, "Scammers are targeting veterans at alarming rate. How to protect the vet in your life," ABC 7 News, published June 3, 2025. Accessed November 4, 2025. Back
- U.S. Attorney's Office, Eastern District of Missouri, "Man Accused of Concealing Death of Disabled Veteran for Years to Reap Financial Benefits," Justice.gov, published May 8, 2025. Accessed November 4, 2025. Back
- Janette Groom and Kim Adams, "Be vigilant of scammers targeting SMC benefits, Purple Heart recipients," VA News, published April 17, 2025. Accessed November 4, 2025. Back
- U.S. Department of Veterans Affairs, "Find a VA accredited representative or VSO," accessed October 28, 2025. Back
- Federal Trade Commission, "Veterans and caregivers: Recognize VA benefits overpayment scams," FTC Consumer Advice, published July 8, 2025. Accessed November 4, 2025. Back
- U.S. Department of Veterans Affairs, "Request help with VA debt for overpayments and copay bills," accessed November 4, 2025. Back
- Military Officers Association of America, "Military Scams: How to Spot Them and Protect Your Community," published July 29, 2025. Accessed November 4, 2025. Back
- VSAFE.gov, accessed November 4, 2025. Back
- VeteransCrisisLine.net, accessed November 4, 2025. Back
- MilitaryConsumer.gov, accessed November 4, 2025. Back
- Military Consumer, "Military Consumer Toolkit," accessed November 4, 2025. Back
- Federal Trade Commission, "Report Fraud," November 4, 2025. Back
- FBI, "File a Complaint," Internet Crime Complaint Center. Accessed November 4, 2025. Back