Memorial Day is a time to honor those who serve, have served and those who have lost their lives for our country. Unfortunately, scammers use this time of year to take advantage of victims in a variety of scams with a patriotic or military approach. Better Business Bureau of Central New England wants consumers, donors and military persons alike to be aware of potential scams.
“Scammers know that vulnerable populations are easy targets, whether it be playing on emotions for donations or hard to resists offers on loans or property for cash-strapped veterans, they can use a variety of angles this time of year to play off of hard work, service and the honor of our military,” said Nancy B. Cahalen, President and CEO of the Better Business Bureau of Central New England. “As with any scam, if an offer or request seems suspicious, research the company or charity before following through or making an agreement.” BBB Military Line, the military arm of the Better Business Bureau, provides free resources, such as financial literacy information, access to BBB services and scam alerts for all branches of the U.S. military.
BBB warns of the following scams that are directed at service members:
High priced military loans - Advertisements for loans that promise a guarantee, instant approval or no credit check will often come with hidden fees and extremely high interest rates. Remember that legitimate lenders will never guarantee a loan before you apply and loans that require an upfront fee are likely a scam.
Veterans’ benefits buyout plans - This buyout plan will offer a cash payment in exchange for a disabled veteran’s future benefits or pension payments. The cash amount is only about 30-40% of what the veteran is entitled to. These buyout plans can be structured in several different ways, so research thoroughly before signing anything over.
Fake rental properties - Stolen photos of legitimate rental properties are used in advertisements that promise military discounts and other incentives. Service members will have to pay a fee via wire transfer for security payments or a key to the property – in the end they will receive nothing.
Phony jury duty summons - A caller claims to work for the local court system and states that the service member did not show up for jury duty and now has a warrant out for their arrest. When the victim says they never got a summons, the caller will ask for a credit card number or Social Security number to clear up the matter.
Misleading car sales – Websites posting classified ads will offer false discounts for military personnel or claim to be from soldiers who need to sell their vehicle fast since they have been deployed. Upfront fees will be required via wire transfer, or the vehicle will have problems after purchase.
Expensive life insurance policies – Members of the military are often the targets of high pressured sales pitches that offer unnecessary, expensive life insurance policies. Solicitors may make false statements regarding the benefits that these policies offer.
BBB of Central New England recommends the following tips to avoid scams:
Do your research. Get as much information as you can about a business or charity before you pay. A good start to your search would be to check out a business’ BBB Business Review.
Don’t wire transfer money to anyone you don’t know. Money sent via wire transfer is practically impossible to track. Pay by credit card whenever possible, since you can dispute charges easily.
Protect your computer. Don’t click on links within unsolicited emails. Don’t enter personal information on unfamiliar websites. Make sure that you have updated anti-virus software installed and use a firewall at all times.
Put an Active Duty alert on your credit reports when deployed. Doing so will minimize the risk of identity theft because creditors and businesses cannot issue or grant credit until verifying identity.