Fraud and Scams
Everyone is susceptible to fraud, scams and identity theft. The risk is increased for military personnel, and veterans due to frequent moves, oversea deployments and the transition to civilian life. Fraudsters and scammers use a variety of ways to try and steal your money, but every theft begins with gaining access to your personal financial information. Reduce your risk by employing the three D’s of identity protection: Deter, Detect and Defend.
- Do not carry around personal identification information unless necessary. For example, you do not need your passport unless you are traveling outside of the country.
- Avoid giving others your Social Security number and do not provide personal information to individuals over the phone unless you initiated the contact.
- Use a locked mailbox or post office box for incoming mail. Avoid placing outgoing mail in your mailbox with the flag up.
- Use PINs and passwords that are easy for you to remember but difficult for someone else to figure out. You should not use birth or anniversary dates as your PIN; typically, this is the first set of numbers the identity thief will try.
- When creating your online passwords to banking and credit card accounts, use a minimum of 8 to 12 characters with combinations of upper and lower-case letters and symbols such as an ampersand (&) or percent sign (%). Never use the same password for multiple accounts. Change your passwords often.
- Set up multi-factor authentication when possible. This offers extra security by requiring two or more credentials to log into your account, like a pass code you receive via your phone or a scan of your fingerprint or face.
- Use a cross shredder to shred your personal information. A cross shredder is better than a vertical shredder because paper is cut into small pieces instead of strips that can be pieced back together.
- Review your credit reports for errors and inaccuracies. Look for signs of identity theft such as additional addresses, accounts or lines of credit and dispute anything that you don’t recognize. Each of the three credit reporting agencies Equifax, TransUnion and Experian are required to provide you with a free credit report every twelve months, at your request. Stagger your requests from each credit bureau every four months so you can see your credit report three times a year. (Due to various breaches, you may be able to access your credit report online with more frequency.)
- You can request a free credit report from AnnualCreditReport.com or by calling 1-877-322-8228 where you will go through a verification process. AnnualCreditReport.com is the only official site explicitly directed by Federal law to provide credit reports.
- Review your monthly bank accounts and credit card statements. Identity thieves may try to charge small amounts that they hope you will miss. If you notice unfamiliar charges on your accounts, contact your financial institution immediately.
Who can place one: Anyone can freeze their credit report, even if their identity has not been stolen.
What it does: A credit freeze restricts access to your credit report, which means you — or others — won’t be able to open a new credit account while the freeze is in place. You can temporarily lift the credit freeze if you need to apply for new credit. When the freeze is in place, you will still be able to do things like apply for a job, rent an apartment, or buy insurance without lifting or removing it.
Duration: A credit freeze lasts until you remove it.
Cost: Free
How to place: Contact each of the three credit bureaus — Equifax, Experian, and TransUnion.
Who can place one: Anyone who suspects fraud can place a fraud alert on their credit report.
What it does: A fraud alert will make it harder for someone to open a new credit account in your name. A business must verify your identity before it issues new credit in your name.
When you place a fraud alert on your credit report, you can get a free copy of your credit report from each of the three credit bureaus.
Duration: A fraud alert lasts one year. After a year, you can renew it.
Cost: Free
How to place: Contact any one of the three credit bureaus — Equifax, Experian, and TransUnion. You don’t have to contact all three. The credit bureau you contact must tell the other two to place a fraud alert on your credit report.
Who can place one: An extended fraud alert is only available to people who have had their identity stolen and completed an FTC identity theft report at IdentityTheft.gov or filed a police report.
What it does: Like a fraud alert, an extended fraud alert will make it harder for someone to open a new credit account in your name. A business must contact you before it issues new credit in your name.
When you place an extended fraud alert on your credit report, you can get a free copy of your credit report from each of the three credit bureaus twice within one year from when you place the alert, which means you could review your credit report six times in a year.
In addition, the credit bureaus will take you off their marketing lists for unsolicited credit and insurance offers for five years, unless you ask them not to.
Duration: An extended fraud alert lasts seven years.
Cost: Free
How to place: Contact any one of the three credit bureaus — Equifax, Experian, and TransUnion. You don’t have to contact all three. The credit bureau you contact must tell the other two to place an extended fraud alert on your credit report.
Who can place one: Active duty service members can place an active duty fraud alert.
What it does: An active duty fraud alert will make it harder for someone to open a new credit account in your name. A business must verify your identity before it issues new credit in your name.
In addition, the credit bureaus will take you off their marketing lists for unsolicited credit and insurance offers for two years, unless you ask them not to.
Duration: An active duty fraud alert lasts one year. After a year, you can renew it for the length of your deployment.
Cost: Free
How to place: Contact any one of the three credit bureaus — Equifax, Experian, and TransUnion. You don’t have to contact all three. The credit bureau you contact must tell the other two to place an active duty fraud alert on your credit report.
Active duty service members can get free electronic credit monitoring, which can detect problems that might be the result of identity theft. To sign up, contact each of the three credit bureaus — Equifax, Experian, and TransUnion.
Report any problem as soon as possible at IdentityTheft.gov, and follow the steps, including filing a fraud alert and obtaining a copy of your credit report to review.
Below is the contact information for each of the three credit bureaus to place a fraud alert on your credit report:
Equifax
www.Equifax.com/personal/help/place-fraud-active-duty-alert/
P.O. Box 105069, Atlanta, GA 30348-5069
1-800-685-1111
Experian
www.Experian.com/help
P.O. Box 4500, Allen, TX 75013
1-888-397-3742
TransUnion
www.TransUnion.com/credit-help
P.O. Box 2000, Chester, PA 19016
1-800-680-7289
Below is the contact information to place or lift a credit or security freeze on your credit report:
Equifax
www.Equifax.com/personal/help/place-lift-remove-security-freeze/
P.O. Box 105788, Atlanta, GA 30348-5788
1-800-685-1111
Experian
www.Experian.com/help
P.O. Box 4500, Allen, TX 75013
1-888-397-3742
TransUnion
www.TransUnion.com/credit-help
P.O. Box 160, Woodlyn, PA 19094
1-888-909-8872
There are many lawful charities soliciting donations to support our nation’s military veterans, as well as active duty personnel, but beware. Just because a charity uses words like “veterans” or “military families” in their name, doesn’t make it legitimate. Scam artists will also use a name similar to those of a well-known business, relying on its familiarity to get you to donate. Before you give money to an organization, do your homework. Visit the organization’s website and research their name on the internet for any accounting of fraud. You can find a list of registered charities in Florida by visiting the Department of Agriculture and Consumer Services Check-a-Charity website.
Active duty servicemembers are prime targets for the credit repair scam if they are carrying significant credit card debt that is difficult to manage. Scam artists claim to be able to improve your credit score, remove bankruptcies, judgments and liens, and repair your credit. Remember there is no quick fix to repair bad credit. Under federal law, credit repair companies cannot require you to pay any fees until they have completed the service they promised.
Financial counselors on your military installation can help you review your credit report free of charge and dispute any errors that are found. Only time can erase negative information from your credit history. Most negative informative will stay on your report for seven years, and bankruptcies will be reported for 10. Active duty military servicemembers should consider freezing their credit before deploying. Effective July 1, 2018, credit reporting agencies can no longer charge a fee to freeze your credit.
Active duty servicemembers and veterans seeking to take advantage of the GI Bill for college courses may be targets of deceptive marketing tactics that provide false information and encourage them to attend expensive for-profit educational institutions. The marketing firms use familiar phrases such as: “GI Bill” and “Armed Forces” to recruit active duty servicemembers and veterans. Some of these for-profit educational institutions lack accreditation and their credits may not be transferrable.
The U.S. Department of Veterans Affairs has a comparison guide that can assist with locating a school and determining your specific GI benefits. The guide also has a section for employers where they can search for resumes, post available jobs and learn how servicemembers and veterans will be an asset to their organizations. Thoroughly research colleges and other higher educational institutions you are interested in before applying with the GI Bill Comparison Tool.
Located outside the gates of many military installations are loan companies offering loans specifically for military servicemembers, veterans and their families. Be cautious of loans that promise instant approval or no credit check. These loans typically come with extremely high interest rates and hidden fees. Remember, legitimate lenders will never guarantee a loan before you apply and are approved, and loans that require an upfront fee are likely to be a scam.
Many credit unions, especially those located near or on military installations, offer short-term loans at competitive rates and have specific programs for military servicemembers. Also, as a veteran or military servicemember, you may have access to interest free loans through your service relief organization. Military OneSource has more information about military relief organizations and emergency financial help.
| Army Emergency Relief | Navy-Marine Corps | Air Force Aid Society |
Imposters pretend to be someone you trust or know, like a government official, a family member, a charity or a company you do business with. They use pressure tactics to get you to send money or give your personal information to them. They might send you an email or text, but they may also call you on the phone. Imposters may pose as someone from the IRS or from a government agency and request personal information like your Social Security number to update your military records. Or they may try to con you into paying them for something with a gift card or wire them money.
Never give out personal information over the phone. A government or law enforcement agency or legitimate business will never ask you to wire money or for a gift card as payment. If you think the phone call may be legitimate, hang up and call the agency directly to verify with information you’ve gotten from the internet or from the back of your credit card.
Military homeowners looking for assistance with paying the mortgage should be cautious of this type of scam. Some mortgage relief companies will try to convince servicemembers and veterans to pay them a small fee in exchange for their ability to get a loan modification or to stop foreclosure. Oftentimes these companies claim to be associated with the government, a non-profit or housing relief organization; unfortunately they may not be. It’s against the law for mortgage relief companies to charge any money until you have been given a written offer from your lender and you have accepted it.
If you’re struggling to make you mortgage payment, there are legitimate programs that can help. The best place to start is with your lender. They can work with you to help get you back on track or give you names of legitimate organizations that can help you. Also, the Consumer Financial Protection Bureau provides a list of approved housing counselors from the office of the U.S. Department of Housing and Urban Development.
Veterans 65 and over are targeted by shady financial advisers persuading them to transfer their pensions into a special trust while charging excessive fees. The advisers claim to help veterans qualify for Aid and Attendance benefits, but this may cause them to lose eligibility for Medicaid or prevent access to their pension for several years.
Only the U.S. Department of Veterans Affairs, Veterans Benefits Administration can award benefits. To avoid becoming a victim of the Veteran Pension Poaching Scam, do not quickly approve changes to your pension. If you are interested in Aid and Attendance benefits, you can apply free of charge through the U.S. Department of Veterans Affairs.
Scammers use email or text messages to trick you into giving them your personal information, like passwords, account numbers or Social Security numbers so they can gain access to your email, bank or other accounts. Phishing emails and text messages may appear to come from a reputable company or government agency. They will tell a story to try and trick you into clicking a link or opening an attachment. Do not click on hyperlinks in emails or texts. Only provide personal and financial information through an organization’s website if you typed in the web address yourself. Ensure that the browser window displays the closed padlock symbol or starts with “https”, which indicates the site is secure.
Be cautious of opening attachments and downloading files from emails. These files may contain viruses that may damage your computer’s security system or provide access to your personal information. Keep your computer and personal devices software up to date. Use security software and keep it updated. Use multi-factor authentication when possible. Back up your data regularly.
Scammers are aware that past military experience appeals to many employers and use that to their advantage. Using online platforms and job boards, phishing emails, phone calls and texts, scammers advertise bogus positions in an effort to gather personal or financial information that can be used for identity theft. Verify that the potential employer is real before filling out online job applications.
Phony phone operators may ask for your bank account information to set up direct deposit, but they just want to take your money. If a company or organization is mentioned in an ad or interview, contact that company directly to find out if the company is hiring. Beware of testimonials or references you cannot independently verify. Visit the Better Business Bureau Job Scams Study to read real life scenarios of victims of employment scams.
This scam occurs through internet dating websites or other social media sites. A scam artist creates fake profiles with attractive photos to gain the interest of potential victims. Over time, the scam artist will begin asking for money for expensive items such as medical or education costs, or to pay internet or phone bills to continue the relationship. The scam usually ends when the victim realizes they are being scammed and/or stops sending money.
You can protect yourself from this scam by being very careful and mindful about how much information you share on social network sites. Use search engines to check out your potential suitor’s photos, credentials and other information shared. You may discover conflicting information or that the information was previously used to lure another victim. If you’re unsure about the relationship, talk to a trusted friend or family member who may provide an unbiased perspective.
Beware of offers that claim to provide deals or discounts specifically for veterans and servicemembers on a variety of items. Scam artists plot to separate veterans and servicemembers from their hard-earned money by advertising a special deal, when in fact the item may not be available.
For instance, a landlord offers a rental property and offers a discount for veterans or military members. In order to secure the property, the landlord requires you to wire money for a deposit. Beware. Some organizations do offer genuine discounts for veterans and servicemembers, but always check those offers out carefully and never wire payments to anyone you don’t know.
Consumer Financial Protection Bureau - Office of Servicemember Affairs (OSA)
Servicemembers should be able to accomplish their mission without worrying about illegal or harmful financial practices. The Office of Servicemembers Affairs is here to ensure that military personnel and their families have a voice at the Consumer Financial Protection Bureau
Federal Trade Commission - Military Consumer Protection
The Federal Trade Commission recognizes the unique challenges servicemembers and their families face managing their finances and personal information. Servicemembers are at an increased risk for identity theft because of frequent moves and overseas deployment. Here you will find information to protect your identity.
Florida Office of the Attorney General
The Florida Office of the Attorney General designed an identity theft kit to help you through the process of resolving your identity theft case and clearing your name. As soon as you become aware that your identity has been misused, it is important that you keep track of the action you take and retain a record of your progress.
Internal Revenue Service Identity Protection PIN (IP PIN)
Request an IP PIN for an added layer of protection against identity theft. This 6-digit IP PIN is assigned to eligible taxpayers and helps prevent the misuse of their Social Security number on fraudulent federal income tax returns.
Military One Source is a Department of Defense funded program providing a variety of information on every aspect of military life. Topics include, but are not limited to; deployment, finances, spouse employment, children services and education.