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Guard against these 10 scams on service members.

From identify theft and phishing to bad car loans and card popping, frauds targeting service members can lurk around any corner. Read on to learn more.

According to the Federal Trade Commission (FTC) in 2021, Americans lost a staggering $8.8 billion to fraud, an increase of $2.6B over 2022.See note1 Military families are particularly at risk. In 2022, military families filed almost 133,000 scam and fraud complaints and reported 37,924 instances of identity theft. These scams on service members and veterans are on the rise as cyber criminals get smarter and use savvier tricks to swindle their way into your bank account.

“Today's scammers are masters of manipulation,” says Jeff Wolfe, VP Fraud Operations at USAA. “They know the military terminology. They know that you're receiving a steady paycheck. They know what you're posting online.”

Wolfe adds that many new service members seem to be an easy target because they're receiving a paycheck for the first time.

“They may not be used to a checking account or how debit cards work. Plus, they're moving a lot, changing their address and getting used to new processes. Fraudsters use this learning curve as an opportunity to come in and take advantage.”

Read on for tips that can help you recognize military veteran and service member scams before they cripple your finances.

How to recognize the most common service member scams

Scammers can be so convincing that many service members give out personal information before realizing they've been scammed. Unfortunately, recovering these funds is difficult if not impossible once you've provided your information, even if you gave it inadvertently.

“But if you educate yourself on the types of scams that are out there — and how you should respond if you notice suspicious behavior — you're in a position to protect yourself and your finances,” says Wolfe.

Identity theft

Military families report identity theft at nearly twice the rate of civilians, according to a 2020 FTC report.See note1

“It's not unusual for scammers to pretend to be official government agencies or military personnel,” says Wolfe. “Sometimes they'll claim to offer military discounts, and they might even say they're representing a bank that offers payday loans. Anything to make you believe it's a legitimate request.”

One way you can protect yourself is by guarding your personal information. Shred bills or other important documents instead of throwing them in the trash. Don't share private information in a public place like a doctor's office and beware of phishing or imposter scams designed to trick you into giving out your banking information.

Phishing

FBI's Internet Crime Report of 2022 reports that people lost $52 million to phishing schemes in 2022.See note1 These consumer and military service scams try to trick you into revealing sensitive information, like passwords, Social Security numbers and credit card numbers.

Phishing scams via text or email can be convincing, using official-looking logos and return email addresses. Even if you don't have the intention of sharing personal information, simply clicking the link they provide can add malicious software to your device and allow the scammer to track and record your online activity.

Impostor scams

In these schemes, a con artist claiming to be someone else encourages you to send money or share personal information. For example:

  • You get a desperate email from a “friend” who asks you to wire money.
  • A “store” you frequent online sends you a text telling you to click for a reward or gift card.
  • A fictitious message from your electronic pay service emails you to let you know your account has been suspended.
  • The “DMV” texts and asks you to click a link for a refund payment.
  • The “power company” wants your credit card number or your service will be shut off immediately.
  • A “financial institution” asks you to click for a change in your credit score.
  • The “IRS” says you're late paying taxes and you will face a penalty.
  • “Social Security Administration” claims your number has been frozen.
  • Your “bank” calls and wants to send you a code to verify your account to trick you into giving them the authentication they need for full access.

None of these are true of course. "At USAA, if we need to notify members of fraudulent activity, we'll send a fraud alert via SMS text message that'll connect you to your USAA app," says Wolfe. "We'll never call you on an outbound call and ask you for your multifactor authentication or online password. If you receive a call that seems suspicious, don't be shy about hanging up and calling 800-531-USAA."

Car scams

With a car scam, a dishonest dealer may offer to sell or lease you a high-performance sports car when all you can afford is an inexpensive compact. And their financing department may saddle you with an unfairly high interest rate. If it sounds too good to be true, it probably is.

Card popping or card cracking

This new wave of scams targets service members who bank with USAA or other military credit unions. The scammer first friends you on social media, then tells you they know a way to make big money. They meet you at the ATM, you withdraw money from your account, and they give you a check for much more than the amount.

Next, the scammers coach you on how to make a claim with your bank, so you get reimbursed for the withdrawal while also cashing their check. Not only is their check bad, but they've also seen your PIN and have made you an accomplice in their crime.

Job scams

These imposter scams target service members and military veterans by using online job ads that promise special consideration for military personnel. When you apply, you're asked to send additional personal information, such as checking or savings account numbers, allegedly so the fake employer can do a credit check or pay for a background check.

In addition to using your credit card, scammers use your information to file unemployment or other benefit claims that go directly to them.

Real estate scams

With a real estate scam, an organization posing as a bank or debt collector contacts you and claims it will save your home from foreclosure — for an exorbitant fee. Other scammers pretend to be real estate agents and post fake ads for rental properties near the base, sometimes promising military discounts and other incentives.

Romance scams or catfish schemes

Scammers make fake social media accounts or dating app accounts with attractive profile pictures. First, they friend you and gain your trust. Then they start asking for small things.

“Sometimes the scammer will say they're overseas, so they can't meet in person. Then that sets the stage for them to claim they're in an accident and need money,” says Wolfe.

He adds that a lot of times the fraudster gets away with it because the victim of their scam is too embarrassed to admit it, much less report it.

Grandparents scam

Beware of this common military veteran scam, in which criminals prey on people's natural desire to help others, especially their family members.

With a grandparents scam, the scammer might call and report that your grandchild was in an accident. You're inclined to believe them because they disclose personal, convincing details. The scammer is just using information that's available online and on social media. For example, where they go to school, who they're dating, where they last vacationed, etc.

12 steps to take if you suspect a scam

  1. Monitor for identity theft or fraudulent charges by regularly checking your financial statements, shredding sensitive documents and creating strong passwords.
  2. Read the fine print when you're seeking a loan. Call your trusted financial institution to compare rates.
  3. Be wary of new phone numbers. Keep in mind most reputable companies like government agencies and financial institutions won't call and ask you to provide personal details.
  4. Verify a caller's legitimacy by asking for the number to their organization's main switchboard. Once you've done your research, you can call them back.
  5. Never click a link in a text or email from an unverified recipient.
  6. Look for clues within the email, like logos or font types that are slightly off. Hover over the sender's name to see if it's from a bogus email account with random numbers and letters.
  7. Visit your installation's legal office if you're worried your home may be facing a foreclosure. Military personnel may have special protections from foreclosure under the Servicemembers Civil Relief Act (SCRA).
  8. Be careful when interacting with new people on social media and dating apps. Report inappropriate conduct.
  9. Register your phone number on the free National Do Not Call Registry to reduce the number of unsolicited calls you receive. Call 888-382-1222 from the phone number you want to register or visit donotcall.gov.See note1
  10. File fraud reports online at ReportFraud.ftc.gov.See note1 Forward suspicious emails to reportphishing@apwg.org.See note1 And forward suspicious texts to SPAM or 7726 on your cell phone.
  11. If you've received a suspicious USAA email, text or phone call, or have visited a suspicious website, immediately call 800-531-USAA (8722) or email abuse@usaa.com.
  12. Share these tips with friends and family, especially when you're deployed and others are handling your finances in your absence.

The USAA Advice Center provides general advice, tools and resources to guide your journey. Content may mention products, features or services that USAA Federal Savings Bank does not offer. The information contained is provided for informational purposes only and is not intended to represent any endorsement, expressed or implied, by USAA or any affiliates. All information provided is subject to change without notice.