Veterans Under Attack at Home: $1.4 Billion Lost to Military-Related Benefit Scams

Having served their nation, many veterans now find themselves in a different battle—one against financial predators who are taking advantage of their service and vulnerability. 

A recent survey conducted by AARP in 2023 found that nearly 90% of veterans and active service members had experienced military-related scams in the previous year. The evidence is compelling: figures from the Federal Trade Commission (FTC) reveal that veterans have fallen victim to fraud schemes, losing more than $1.4 billion in the last five years.

A woman from Southern California, with a brother who served in Operation Desert Storm, has experienced the impact up close. During a conversation with ABC7’s 7 On Your Side Investigates, a woman, who wishes to remain anonymous for safety reasons, recounted the troubling experience of how fraudsters exploited her brother’s VA disability payments and deceived him over an extended period. “He’s currently hospitalized after experiencing several mini-strokes,” she stated, noting that even from his hospital bed, the calls continue to pour in.

She mentioned that her brother faced untreated post-traumatic stress disorder (PTSD) and dealt with feelings of isolation after transitioning back to civilian life in Los Angeles. That weakness rendered him susceptible to attacks. She explained that he seemed to have fallen victim to an online scam, which led to him being handed over to another group of scammers. 

Over the past five years, various schemes have defrauded the veteran of more than $300,000, according to the family. 

Dan Clare, the spokesperson for Disabled American Veterans (DAV), reports that veterans face a 40% higher risk of losing money in scams compared to civilians. “You must consider that if you’re not meeting someone face-to-face or listening to their voice, there’s a possibility they might not be genuine,” Clare cautioned.

In a decisive move, the sister successfully paused his VA and Social Security payments for the time being, safeguarding the remaining funds from additional misuse. However, the danger remains pervasive.

Fraudsters are becoming increasingly sophisticated, frequently using authentic-looking seals, logos, and counterfeit VA contacts to entice veterans into divulging sensitive information or making payments. 

The Department of Veterans Affairs (VA) highlights that genuine assistance for repaying overpayment debt is consistently available at no cost through the veterans website, VA.gov. Veterans who encounter questionable messages about VA debts are advised to contact the VA Debt Management Center at 1-800-827-0648.

The FTC encourages victims of fraud to report scams at ReportFraud.ftc.gov. 

The agency and VA emphasize the critical need to keep VA login credentials confidential, utilize multi-factor authentication, and avoid any upfront fees for services that are intended to be complimentary through accredited representatives.

Supporters emphasize that further actions are necessary to safeguard individuals who have already made significant sacrifices, even though these measures may provide some assistance. return.