Press Releases
07/17/2023
Attorney General Tong, Department of Veterans Affairs, Department of Consumer Protection Warn Against Scams Targeting Military Servicemembers and Veterans During Military Consumer Month
(Hartford, CT) -- Attorney General William Tong, Connecticut
Department of Veterans Affairs Commissioner Ronald P. Welch and Connecticut
Department of Consumer Protection Commissioner Bryan T. Cafferelli today marked
Military Consumer Month by urging servicemembers, veterans, and their families
to remain vigilant against scams which specifically target them.
According to the organization Disabled
American Veterans, around 16 percent of veterans describe losing some money
to fraud, while nearly 80 percent have reported scams explicitly designed to
exploit their military service.
“Active servicemembers, veterans and their families have made
enormous sacrifices for our country. Scams that target our nation’s heroes are
particularly egregious and must be stopped,” said Attorney General Tong.
“Scammers can appear extremely convincing and legitimate, relying on detailed
information regarding military incomes and benefits. This Military Consumer
Month, and year-round, stay vigilant and report any suspected scam or fraud to
our office immediately. And remember - if something seems too good to be true,
it most likely is.”
“Service members and veterans are unfortunately appealing
targets for scams especially with the recent passing of the PACT Act and
expansion of benefits. Scammers know their incomes are predictable and that
veterans are often trying to access their hard-earned benefits. Please report
any scamming activity to local, state, or federal authorities. They will investigate and prosecute if
required,” said Commissioner Welch.
“The only thing more shameful than running a scam, is
running a scam that targets active service members, veterans and their
families,” said DCP Commissioner Cafferelli. “We hope to prevent people
from becoming victims by giving them the tools and expertise to recognize scams
and fraud. Military Consumer Protection Month is a great time to remind our
valued military community about the importance of remaining vigilant, including
learning to recognize red flags and knowing what to do if you are targeted by
or become the victim of a scam.”
The most common scams targeting active-duty service members
and veterans include:
Payday Loan Scam: Criminals exploit workers by
offering fake payday loans that they claim will help people settle their
bills if loan applicants simply prepay a fee. That “fee” goes to the scammers.
One-time password (OTP) bot scam: Credit
reporting company Experian warns that scammers utilize bots — automated
programs — to deceive people into sharing the two-factor authentication codes
sent to them via text or email from financial institutions (or from companies
such as Amazon).
Loan and Credit Card Scams: Warning signs of
these types of scams include not being interested in your credit history, even
if you have no credit or bad credit; guaranteeing you will qualify for a credit
card or loan before you apply; not disclosing fees clearly; and asking you to
wire money or pay an individual -legitimate lenders don’t do that.
Car Sales Scams: Dealers that require no
credit check and offer instant approval often charge hidden fees and high
interest rates that inflate the cost of a car. Before signing a contract,
comparison shop with other dealerships to make sure it’s a fair deal.
Fraudulent use of the Military OneSource name or logo:
Some scammers use the Military OneSource name or logo to trick service members
and families into believing they are legitimate. Verify that you are on a
Military OneSource website by checking for the .mil extension in the URL. The
Military OneSource Member Connect site is the only exception. Look for
https://www.militaryonesourceconnect.org in its URL.
Fake military charities/disreputable retailers: These
“charities” prey on military families, have names that sound like real
charities, and often ask for money for wounded or disabled veterans.
Additionally, certain retailers and businesses have been known to fraudulently
market goods and services to service members. In July 2022, Attorney
General Tong announced a $34 million multistate settlement with Harris
Jewelry for making false promises of charity and deceptive marketing ploys to
lure servicemembers to their financing program, falsely claiming that this
program would improve credit scores. Instead, servicemembers were tricked into
obtaining high-interest loans on overpriced, poor-quality jewelry that saddled
them with thousands of dollars of debt and worsened their credit. More than 100
Connecticut servicemembers received refunds and debt relief from the
settlement.
Phony debt collectors: These scammers pose as
debt collectors. They contact military personnel and try to pressure them into
paying debts they don’t have.
Credit monitoring scams: These target
active-duty members who are being deployed. They offer to monitor credit and
defend against identity theft, but instead they use the victim’s credit information
to go on a spending spree, leaving the victim to foot the bill.
To protect yourself or a loved one from any of these types
of scams, keep in mind the following best practices:
·
Applying for benefits through the VA is free, as
is talking to a Veteran Service Officer who can help navigate the process.
·
Verify that anyone assisting with VA benefits
claims is accredited. Anyone who assists veterans with VA benefits claims is
required by law to be accredited through the VA Office of General Counsel.
·
Actively check bank accounts. Report a lost or
stolen debit card and any unauthorized transactions. Have your bank notify you
of every transaction over a certain amount.
·
Do not give out information used to authenticate
your identity – including a PIN, or verification code – to anyone who calls,
emails or texts you.
·
Sign up for credit monitoring, which is
available free of charge to active-duty service members through Equifax,
Experian and TransUnion.
·
If you are deploying, put an active-duty alert
on all three of your credit reports with Equifax, Experian and TransUnion.
Alerts last one year and require creditors to take steps to verify your
identity prior to granting credit in your name.
If you spot a scam, you can report it to the Federal
Trade Commission at ReportFraud.ftc.gov
or report it to the Office of the Connecticut Attorney General Complaint Portal
at www.dir.ct.gov/AG/Complaint/.
- Twitter: @AGWilliamTong
- Facebook: CT Attorney General
Media Contact:
Elizabeth Benton
elizabeth.benton@ct.gov
Consumer Inquiries:
860-808-5318
attorney.general@ct.gov