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Seven ways scammers are targeting veterans

7 Common Scams Targeting Veterans — And How to Stop Them Cold

Why Veterans Are Prime Targets for Scammers

If you’re a veteran or someone who works closely with veterans, it’s crucial to understand the growing threat of scams targeting those who served. Veterans are increasingly being singled out by fraudsters because of three key factors:

  • Steady benefits like pensions and GI Bill funds

  • Publicly accessible service records

  • Trusted status that makes them more likely to believe an “official” call or email

These vulnerabilities make veterans high-value targets. The best way to fight back? Learn the scams and share the knowledge.

“Veterans are being targeted not because they’ve done anything wrong — but because scammers see them as credible and financially stable. Awareness is your first line of defense.”
– [Wade Betz]

Below are the seven most common scams targeting veterans today, along with real examples and actionable steps to protect yourself and your community.

1. The “Update Your VA File” Scam

How it works:
You receive a call, text, or email claiming to be from the VA. The message urges you to “verify” your Social Security number, bank info, or other personal data — or risk losing your benefits.

The truth:
The VA will never ask for sensitive personal information this way.

Real example:
In 2024, multiple veterans in Texas reported threatening calls claiming their benefits would be cut unless they provided private details.

How to protect yourself:

  • Hang up or delete suspicious emails

  • Report the attempt to the VA hotline

  • Always contact the VA using verified numbers from va.gov

2. VA Loan Refinance Scams

How it works:
A caller promises you a “super low” VA refinance rate — but only if you pay an upfront fee.

The truth:
Legitimate VA loans do not require upfront fees.

Real example:
In 2023, the Consumer Financial Protection Bureau (CFPB) fined several companies that falsely claimed VA endorsements and scammed veterans.

Protection tips:

  • Only work with VA-approved lenders

  • Be skeptical of offers that sound “too good to be true”

3. Pension Poaching Scams

How it works:
Unaccredited “advisors” offer to restructure your assets so you can qualify for more VA benefits — but they charge massive fees or lock up your money in high-penalty products.

The truth:
Only VA-accredited agents can legally assist with benefits applications.

Real example:
Veterans in Florida were tricked into buying annuities that locked away their savings for years.

How to stay safe:

  • Verify advisor credentials on va.gov

  • Never pay upfront for advice about benefits

4. Fake Veteran Charities

How it works:
You’re asked to donate to a charity that claims to help vets — but it spends little (or none) of the money on real services.

The truth:
Many fake charities spend less than 5% of donations on veterans.

Real example:
In 2023, the FTC shut down “Veterans of America” for robocalling donors and keeping nearly all funds raised.

Protect your generosity:

  • Use charitynavigator.org to verify charities

  • Avoid donating through cold calls or spam messages

5. Military Record Fee Scams

How it works:
Scammers offer to “help” you access your military records or DD214 — for a hefty fee.

The truth:
Veterans can access their records for free through the National Archives.

Real example:
In 2022, fraudsters charged vets up to $150 for documents they never delivered.

Your action step:
Request your records directly via vetrecs.archives.gov — never pay a third party.

6. Fake Employment Offers

How it works:
A company says they have “veteran-only” jobs, but they require you to pay for training or gear upfront.

The truth:
Legitimate employers never charge applicants for job-related expenses.

Real example:
After a 2023 job fair, several veterans were scammed by phony recruiters who vanished after collecting payment.

How to vet opportunities:

  • Never pay for job access

  • Research companies independently before engaging

7. GI Bill Abuse by For-Profit Schools

How it works:
A school offers you a “free degree” using your GI Bill, but lacks proper accreditation.

The truth:
Only VA-approved institutions can offer GI Bill-supported programs.

Real example:
In 2019, the University of Phoenix paid $191 million after misleading military families about program benefits.

How to verify schools:

  • Use the VA’s GI Bill Comparison Tool

  • Avoid any school that pressures you to enroll quickly

🚩 10 Red Flags to Watch For

Knowing the scams is one thing. Spotting the warning signs is just as important. Here are 10 common red flags:

  1. Requests for upfront fees

  2. Threats to cut off benefits

  3. Requests for personal info via text or email

  4. Job offers that ask for money

  5. Unfamiliar charities requesting donations

  6. Unrealistic promises of guaranteed loans

  7. High-pressure sales tactics

  8. Fees for military documents

  9. Financial advice from unaccredited agents

  10. Schools not listed on the VA’s approved list

🛡️ How to Protect Yourself (and Others)

  • Always verify organizations on va.gov or charitynavigator.org

  • Never share personal information via unsolicited calls or emails

  • Report suspicious activity to:

    • VA Fraud Hotline: 1-800-488-8244

    • FTC: reportfraud.ftc.gov

    • State Attorney General

  • Monitor your credit regularly at annualcreditreport.com

  • Consult a trusted advisor before making financial decisions

✅ FAQ: Protecting Veterans from Scams

Q: What should I do if I think I’ve been scammed?
A: Immediately report it to the VA, FTC, and local authorities. You should also place a fraud alert on your credit file.

Q: How can I tell if a charity is real?
A: Use third-party sites like charitynavigator.org or Give.org to review ratings and transparency records.

Q: Are VA loan offers over the phone ever legit?
A: Rarely. VA-approved lenders typically do not cold-call. Always verify their status and never pay upfront fees.

Q: Can I get my DD214 online for free?
A: Yes. Visit vetrecs.archives.gov to order official documents without paying a third-party service.

Q: What’s the best way to educate fellow veterans?
A: Share this article, link them to trusted VA resources, and encourage them to be cautious with unsolicited calls or emails.

Final Thoughts

Veterans deserve respect — not exploitation. Unfortunately, scammers don’t care. But with the right knowledge and resources, you can stay one step ahead.

“Scammers never take a day off — and neither should your awareness.”
– [Wade Betz]

If you’re a veteran — or work with them — take a few moments to share this article. It could save someone thousands of dollars, or worse.

Need trusted help with VA loans or benefits? Book a call today to protect your finances and get expert advice tailored to your situation.

I'm Wade Betz, your go-to mortgage broker in Dallas, Texas, with a focus on VA loans. My goal is to make home financing seamless and worry-free for our veterans. If you're looking for dependable and knowledgeable support with VA loans, I'm here to help.

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