10 Steps to Guard Against Financial Scams
In recent years, the Department of Justice (DoJ) has tracked a growing number of scams targeting military Families.
You work hard for your money as a Citizen-Soldier. Unfortunately, not everyone is honest and there are plenty of people looking to make an easy buck off of those who serve. Drive by any military post and you will find more than a fair share of businesses advertising good “deals” and “discounts.” Why?
In 2015 alone, nearly 99,000 scam and fraud complaints were filed by military personnel and/or their Families. That number has only gone up over the past two years. You can protect your finances by learning what to look for and by contacting law enforcement about suspected scams.
Financial fraudsters specifically seek out military Families because:
- Military members have a steady guaranteed income;
- Soldiers are under a higher standard for debt repayment under the Uniform Code of Military Justice;
- Heads of household often spend extended periods of time away from home on deployments.
In 2015 alone, nearly 99,000 scam and fraud complaints were filed by military personnel and/or their Families. That number has only gone up over the past two years. You can protect your finances by learning what to look for and by contacting law enforcement about suspected scams.
Thwarting the Trend
The DoJ and Department of Defense (DoD) are diligently working to keep you informed about potential threats of financial fraud and dishonest practices. They often partner with agencies such as Military OneSource or trusted military financial institutions to get the word out. DoJ is dedicated to prosecuting those who target military members and has even implemented programs like the Servicemembers Civil Relief Act Enforcement Support Pilot Program. The Servicemembers Civil Relief Act (SCRA) is a federal law that provides financial protections and benefits for military members. The SCRA Enforcement Support Pilot adds increased legal resources directed at stopping financial predators who target military members and their Families.
How to Protect Yourself
While the government is on your side, you are your own best defense against fraud. Here are 10 steps you can take to protect yourself and your Family:
1. Monitor Your Accounts Regularly. Most financial institutions offer online banking so you can view your transactions at any time.
2. Check Your Credit Report Yearly. Request a free copy from annualcreditreport.com.
3. Research the Company With Whom You Are Dealing. Lawful companies will provide proof of being a legitimate business. If you think a company or organization is questionable, contact the Better Business Bureau or the nearest military installation’s legal office before handing over any Personally Identifiable Information (PII) or information about your accounts.
4. Look for the Telltale Signs of Scam Artists. They will try to gain your trust – saying they want to help and support you when, in actuality, they want to steal from you. Be sure to do your homework when approached with solicitations from:
- Individuals claiming to be military officials asking for money to help a deployed Family member or friend;
- Individuals claiming to be from the Department of Veterans Affairs asking for PII over the phone or e-mail;
- Educational institutions wanting your GI Bill;
- Non-DoD aid and assistance agencies offering financial services;
- Retirement and investment companies claiming higher returns;
- Lenders and auto dealerships promising special military deals or advance fee loans.
5.Get All the Facts. Make sure you know and understand the true cost of the product or loan – including all fees, payments and final price – before signing any paperwork or putting any money down.
6. Join A Credit Union or Military Financial Institution. Their short-term loans usually have better interest rates and you can even get small emergency loans for little or no interest.
7. Avoid Payday Lenders. Payday lenders are widely known to be predatory and often charge extremely high interest rates. If you find yourself in a short-term financial bind, the Army Emergency Relief (AER) is a trustworthy resource for quick cash flow assistance. AER is a non-profit organization created to help Soldiers and their Family members who experience financial emergencies.
8. Find Programs to Help Your Budget Go Further. Learning tips to help your income go further will help make you less vulnerable to fraudsters and scammers. MilitaryOneSource.com and the National Guard Financial Management Awareness Program both have resources that can help get you started.
9. Get Financial Advice. Visit the Family Support Center at the nearest military installation. Financial readiness programs are available to educate and counsel Soldiers in the area of personal finance. Consumer counseling and classes on money management, financial planning and insurance are offered at little or no cost.
10. Always Ask Questions and Read the Fine Print. The more you know, the better you can protect yourself against fraud and theft.
What to Do If You Become a Victim
If you think you’re a victim of a fraudulent company or scam, report it immediately. You can:
- Contact the legal assistance office at your State National Guard Headquarters or at the nearest military installation
- Contact the SCRA Enforcement Support Pilot Program www.servicememberscivilreliefact.com
- Log your complaint to the Federal Trade Commission www.ftc.gov
- Submit a complaint to the Consumer Finance Protection Bureau www.consumerfinance.gov
There is no shame in reporting a crime, big or small. Law enforcement can’t stop what they don’t know about.
By Staff Writer Ruth Ann Replogle
