Top 5 Riskiest Scams for Military Families & Veterans
Milwaukee, Wis. – Service members, veterans, and their families are common targets for fraud, with a median reported loss of $200 last year—32% higher than the general population.1 We know how much you give to your country, and want to help you keep your hard-earned money safe. That’s why we cracked open the data books to identify the top five most risky scams you need to know. The Better Business Bureau receives thousands of reports per year from active-duty service members, military families, and veterans through our crowd-sourced scam reporting tool, BBB Scam TrackerSM. We then applied the BBB Risk Index, which measures risk according to exposure, likelihood of losing money, and median monetary loss. This gives us a better sense of which scams not only take the biggest financial toll on military consumers, but also which kind of scams will most likely result in a loss.
Here are the top five most risky scams from lowest to highest risk as reported in our Military Consumers & Marketplace Trust report this year:
5. Fake Check/Money Order Scams With the increased use of credit cards and other forms of digital payment, it’s easy to forget how checks actually work and how to tell if a check is fraudulent. Scammers take advantage of this in a number of ways. One strategy fraudsters use is to overpay you for a product or service with a check. The scammer will tell you to just send him or her the difference by wire transfer—and maybe even let you keep a few extra bucks for your trouble. Remember: a check may “clear” in your account, but you are still responsible for the funds—even if it turns out to be fake weeks later. Be immediately suspicious of overpayments, and don’t wire or send money to someone you do not know. Learn more about fake check scams in our Investigative Report.
4. Tech Support Scams A warning pops up on your screen with the dreaded words: You Have Been Infected. Immediately, the panic sets in: you need to keep in touch with family and loved ones, and prevent all of your valuable files and information from being lost forever. A phone number appears on the screen, or you get a phone call from someone claiming to be from a well-known tech support company. No matter how much the screen is flashing, or how loud the warning is blasting on your computer—try to stay calm. Scammers use fear to lower your defenses and lure you out of hundreds of dollars. Immediately shut down your device and reboot. Do not give control of your device to a third party that contacts you. Instead, reach out directly to a local business or online service provider you trust. Watch this video from our friends at the FTC to learn more about tech support imposters.
3. Online Purchase Scams Nearly three out of every four military consumers reporting an online purchase scam told us they lost money to a fraudster. Between frequent moves and changing financial situations, families are buying and selling more items online—and falling into common scammer traps. No matter where you’re stationed, purchase items from reputable retailers with a verifiable physical address and a secure website. If you’re selling your items or purchasing them from individuals, use reputable online marketplace sites and apps that offer protections so your transaction is safer and more secure.
2. Home Improvement Scams When you’re new in town, it can be hard to know who to trust with your home repairs. Sixty percent of military consumers who reported a home improvement scam lost money, which is significantly higher than the 53% across all consumer types. No matter how trustworthy someone may seem at your door, you should always verify their credentials. Say no to cash-only deals, high-pressure sales tactics, payments made upfront, handshake deals without a contract, and on-site inspections. Get details in writing and verify reputable contractors and home improvement professionals at BBB.org.
1. Employment Scams By a landslide, the most risky scam for military spouses and veterans is employment scams; the median dollars reported lost was $2,460— more than double that reported across all consumers. Whether you’re looking for a flexible opportunity close to home or hoping to secure your first civilian job, it can be difficult to identify if an opportunity is made for you or just plain made up. Read this article to learn more about employment scam tactics and how to avoid them.
Thanks to the more than 10,000 military consumers who have reporting scams they’ve encountered to the BBB! You can search for scams in your community and warn others by visiting BBB.org/ScamTracker.
About BBB Military Line®: We help military service members, veterans, and their families protect their assets, plan for the future, and prosper in a trusted marketplace. Learn more at BBB.org/Military.
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For more information or further inquiries, contact the Wisconsin BBB at www.bbb.org/wisconsin, 414-847-6000 or 1-800-273-1002. Consumers also can find more information about how to protect themselves from scams by following the Wisconsin BBB on Facebook, Twitter, Instagram and YouTube.
ABOUT BBB: For more than 100 years, the Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2018, people turned to BBB more than 173 million times for BBB Business Profiles on more than 5.4 million businesses and Charity Reports on 11,000 charities, all available for free at bbb.org. There are local, independent BBBs across the United States, Canada and Mexico, including BBB Serving Wisconsin which was founded in 1939 and serves the state of Wisconsin.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.
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