July 2024 is Military Consumer Protection Month

Active military servicemembers, veterans, retirees, and their families make great sacrifices for their country. In turn, DATCP is here to serve them by assisting with consumer issues and protecting them against scams and fraud.

In 2023, the Federal Trade Commission received over 192,000 reports from military consumers, and here is what we learned:

· 1/3 of those reports indicated having lost money to fraud

· Total losses were $477 million

· Top fraud categories included

o Imposter Scams (42,000 reports, $178 million lost),

o Online Shopping and Negative Reviews (13,000 reports, $26 million lost),

o Investment Related Scams (just under 4,000 reports, $147 million lost)

· There were over 39,000 reports of Identity Theft

Unfortunately, military consumers’ distinct culture and community, government benefits and programs, and unique employment conditions lead to them being disproportionately targeted by scammers. Some common scams against military consumers include:

Housing Scams

While many military consumers choose to live on base, others find their own apartment or house. Scammers know this and use it to their advantage, posting fake properties on websites like Facebook, Craigslist, and Zillow to attract military consumers in need of a home. Since military consumers are often not yet physically in the area, they aren’t able to view the property in person. Scammers might even promise military discounts or other incentives.

· Always verify a property is real and legitimate before you rent or buy.

o Be skeptical of unrealistic prices. If the cost is significantly lower than average rent rates in the area, practice caution.

o Always tour a property in person. If that’s not possible, ask for a live virtual tour and see how the provider responds.

o Research the property and owner’s/company’s name online for complaints, reviews, or scam reports. You may also be able to contact the state’s consumer protection agency to ask about complaints.

· Never send money directly before signing a rental agreement – consider using an escrow service.

Fake Government Benefits

These are scammers pretending to be a government official, agency, or program and ask for your money or personal information. They might claim to be representing the IRS, following up on a student aid application (FAFSA form), or contacting you about your healthcare benefits. Scammers are professionals – they know how to make their story seem real and might even share some of your personal information they acquired to convince you they’re legitimate. They may also spoof the caller ID or email address to make it appear it’s coming from an official government source.

· Always pause before you act and take a few minutes to verify what’s happening. Contact the agency using publicly available information rather than information in the message you received.

· Never send money or give away information in response to an unexpected request.

Identity Theft

A rapid response is key to recovering from identity theft. Servicemembers whose duties prevent them from regularly checking their finances may not realize there’s a problem until it’s too late. Military consumers are almost three times more likely than the general public to report theft directly from their bank accounts.

· Set up fraud alerts on your credit cards and a security freeze on your credit report, in addition to using two-factor authentication for your financial accounts whenever possible