Helping Military Consumers Protect Against Scams & Identity Theft

BBB Institute / 27 January 2025

Every year, military service members, veterans, and their families report losing millions of dollars to fraud and scams — over $470 million in 2023 alone. This important community must have the tools and knowledge to discern the difference between a great deal and a scam in disguise.

The Federal Trade Commission (FTC) and the BBB Institute for Marketplace Trust (BBB Institute) have joined together to share important guidance about how scammers target military consumers. Partnering on a webinar during Identity Theft Awareness Week, the organizations provide ways to protect your personal and financial information as well as your military benefits — and discuss how to share this knowledge with others.

Consumer Data

According to the FTC, the top frauds of 2023 for all consumers were scams involving the following: imposters, online shopping/negative reviews, prizes/sweepstakes/lotteries, investments, and business/job opportunities.
According to BBB Institute, the top scams reported to the BBB by the military and veteran community are online purchase, employment, investment/cryptocurrency, home improvement, and travel/vacation/timeshares.
For the military and veteran community, active-duty service members had the highest percentage (42%) reporting a fraud loss, according to the BBB Institute Marketplace Challenges Facing the Military Community November 2024.
Military and veteran consumers who reported losing money engaged with scammers primarily via website (76.6%) and social media (75.6%), according to the BBB Institute Marketplace Challenges Facing the Military Community November 2024..
Military retirees and veterans filed significantly more (282% more than active duty, reserve/National Guard, and family combined) at 152,385 scams reported to the FTC, and had the highest number of fraud reports at 74,227.
According to FTC reports, members of the National Guard/reserve reported the highest median fraud loss at $780, and spouses/dependents of active-duty service members tied with members of the reserves/National Guard at 40% reporting a fraud loss.

The Impact

Scams are about much more than money. BBB data reveals that scams impact the military and veteran community in a variety of ways, as displayed below.

Types of Scams

There are several scams to be aware of.

Imposter scams involve being contacted by scammers pretending to be well-known companies, government agencies, or organizations. They seek to co-opt the trust and authority of these brands. In some cases, scammers impersonate real-life individuals.
Investment scams take many forms, but all prey on the desire to make money without much risk or initial funding. “Investors” are lured with false information and promises of large returns with little or no risk.
Romance scams occur when an individual believing he/she is in a romantic relationship agrees to send money, personal and financial information, or items of value to the perpetrator. Sometimes they will offer investment opportunities, such as cryptocurrency.
Bitcoin ATM (BTM) scams involve being directed to withdraw sums of money and deposit it into the BTM to resolve a fictitious emergency or to hold it for ‘safekeeping’.
Employment scams occur when job applicants believe they are being hired for a promising new job when, instead, they share personal information via fake application or transfer money to scammers for “training” or “equipment”.
Online Purchase scams typically involve the purchase of products and/or services where the transaction occurs via a website or other online means.
Investment / Cryptocurrency scams take many forms, but all prey on the desire to make money without much risk. “Investors” are lured with false information and promises of large returns with little or no risk

Red Flags

These are sophisticated scams that can seem very realistic. In most scenarios, the best way to avoid a scam is simply to slow down. Know the red flags:

Too good to be true.
Pressured to act quickly.
Don’t talk to others.
Let’s finish the conversation somewhere else. They ask you to continue the conversation on a different platform.
Payment method. They insist you pay a certain way. For example, gift cards, which are intended to be gifts, not a method of payment.
We need access to your computer. Tech supports scammers pretend to help but steal your information.
Up-front payments. You need to pay an up-front fee (such as for loans or equipment for a new job).
Unsolicited messages. You get an unsolicited message from somebody who claims to have a connection with you. Even if they say they are with your bank or your boss, always call them directly.

After a Scam

Even knowing the red flags, it’s still possible to experience a scam because bad actors are continually evolving their tactics. If you’ve made a payment and lost money, report the loss as quickly as possible to the source of the payment method. For example, if you paid by credit card, you’ll want to call the credit card company. If your payment was made with a gift card, it’s important to contact the company displayed on the gift card (not the company where you purchased the card). You can find these and other examples at FTC.gov/scams.

Report a Scam

73% of military and veteran consumers reported their scam, according to the BBB Institute Marketplace Challenges Facing the Military Community November 2024.. Of the 20% who did not report, 44% said they didn’t know where to report, and 12% said they were too embarrassed to report. Reporting scams to FTC is vital to tracking and fighting bad actors. In addition, reporting to BBB Scam Tracker is important because it allows others to search scam submissions and potentially avoid a reported scam. Report to the FTC at ReportFraud.ftc.gov. Report to the BBB at BBB.org/ScamTracker – reports are shared with the FTC to support consumer education efforts.

Links/Resources:

Helping Military Consumers Protect Against Scams & Identity Theft

Related Posts

Sign up for our newsletters to learn about our research, programs, events, and new initiatives.