Housing Scams Targeting Military Consumers

Military consumers include active duty servicemembers, retired servicemembers and veterans, and their families. In 2024, military consumers filed more than 200,000 reports with the Federal Trade Commission about scams, fraud, identity theft, and other consumer issues.

· 31,833 reported they lost money.

· Total reported loss: $584 million.

· The median amount lost was $700.

During Military Consumer Protection Month, DATCP is highlighting housing-related scams and frauds that military consumers should be aware target them. Scammers single out military servicemembers, retirees, and their families due to their unique circumstances (like being transferred to a new base, having access to government benefits and programs, and being eligible for legitimate military service discounts). These circumstances, along with the distinct culture and community, are exploited by scammers to gain the consumers’ trust and steal their money or personal information.

Home Loan Scams: Many servicemembers take advantage of the VA’s home loan benefit, which may provide an opening for scammers. Pretending to be representatives of the VA, another government agency, or a home loan servicer, scammers threaten military homeowners with foreclosure or other consequences. They demand the homeowners send money, refinance their home, agree to a loan modification, redirect mortgage payments to the scammer, or even sign over the title to their property.

Warning signs:

· The consumer is threatened with severe consequences if they do not immediately comply with the requestor’s demands.

· The organization wants to be paid with gift cards, cryptocurrency, payment apps, or a wire transfer, or makes other unreasonable demands.

What should consumers do?

· Consumers should never provide personal information or make any changes to their home loan in response to unsolicited contacts. (Remember: Email addresses and caller IDs can be faked.)

· If consumers are unsure if a request is real, they should contact the organization back using a phone number or email address that can be verified is legitimate.

Housing Rental Scams: Many active duty servicemembers live in off-base rental housing. Scammers also know this and advertise fake rental properties online and offer discounts for members of the military. Because the servicemembers usually cannot physically visit the property until they move in, they may have already paid an application fee, security deposit, and rent before they realize the listing was fake.

Warning signs:

· Too-good-to-be-true discounts for military servicemembers.

· The property owner demands payment before providing a tour of the unit.

· The property owner claims they are moving or live elsewhere, and offer to mail the home keys to a renter after receiving payment.

What should consumers do?

Consumers seeking rental housing should be skeptical of unrealistically low prices. If a property’s rent is much lower than the area’s average, practice caution.

· Before paying any money for rental housing, consumers should research the property and its owner by searching for online reviews, complaints, and scam reports. Consumers should not assume a property is real simply because it is listed on a legitimate website. Listings can be fraudulent.

· Prospective renters should tour a property in person if possible. If not, they should ask for a live virtual tour, not a video.

· Consider using an escrow service if upfront payments are needed.

Military servicemembers and veterans searching for housing have resources available to help them find legitimate homes to buy or rent, including platforms like Military By Owner, AHRN (Automated Housing Referral Network), and Homes.mil.