Identity Theft and Fraud: What Every Service Member and Veteran Should Know
Military members, veterans, and their families are frequent targets of identity theft and fraud. The mobile lifestyle, public visibility, and access to government benefits make service members particularly attractive targets for criminals. According to Federal Trade Commission data from 2024, military consumers reported more than 184,000 incidents of fraud and identity theft, resulting in nearly $490 million in losses. Understanding how these schemes work and what to do if you become a victim is critical to protecting your finances, benefits, and personal information.
What Are Some Common Scams Targeting Service Members?
Even scams that initially appear minor can result in significant financial and personal consequences for victims, to include damaged credit, loss of benefits, financial hardship, and potential impacts on employment opportunities, professional licenses, and security clearance eligibility. Service members commonly encounter two related forms of financial crime: identity theft, which involves the misuse of another person's personal information, and fraud, which refers to deceptive schemes designed to obtain money or information.
Identity theft:
Thieves commonly use stolen personally identifiable information to commit a wide range of theft. According to the FTC, the most common forms of identity theft used to defraud service members include opening new credit card or bank accounts, making unauthorized purchases, obtaining loans or leases, fraudulently claiming government benefits, filing false tax returns, collecting wages under another person's identity, creating fake online accounts, and establishing securities or investment accounts without the victim's knowledge or consent.
Fraud:
According to the 2024 FTC reports the most common fraud schemes targeting service members include imposter scams, which involve criminals posing as government agencies, family members, charities, or trusted businesses to steal money or personal information. Service members also face online shopping fraud, fake investment and job opportunities, deceptive travel or timeshare offers, and advance-fee credit or debt relief scams that promise loans, credit repair, or financial relief in exchange for upfront payment.
How Can You Protect Yourself?
· Enable multi-factor authentication wherever it is possible.
· Store documents containing personally identifiable information in a secure location and use strong, unique passwords for electronic accounts.
· Make sure not to give out personal or payment information in response to an unsolicited phone call, text, or email.
· Freeze your credit to prevent others from opening accounts in your name.
· Review your credit report regularly.
· Stay informed about common scams by checking out the VA fraud prevention monthly benefits fraud prevention website (https://benefits.va.gov/BENEFITS/fraud-prevention.asp).
What Should You Do Once Your Identity Has Been Stolen?
1. File a report at IdentityTheft.gov.
2. Contact the big three credit bureaus (Equifax, Experian, and TransUnion) to place a fraud alert or freeze on your credit.
3. Notify any affected banks, lenders, and credit card issuers.
4. Contact the appropriate authority. File a police report if something criminal has occurred, contact the IRS if your Social Security number may have been misused, and report any benefit-related fraud to the VA.
How are you Protected as a Member of the Armed Services?
In August 2024, in a joint operation, spearheaded by the White House and the Department of Veterans Affairs VSAFE.gov was launched. VSAFE.gov is a government-wide resource designed to protect service members, veterans, and their families. VSAFE.gov serves as a one-stop shop where users can access educational materials, learn about common scams, and report fraud. Here you will find downloadable resources, material to learn about common scams, up-to-date prevention plans, places to report fraud, and access to a veterans’ crisis hotline which is available 24/7 to connect with a responder who can provide confidential help.
Additionally, if you are an active-duty service member and want peace of mind while deployed, you can use the Active-Duty Fraud Alert system by contacting one of the three credit bureaus and place what is known as an Active-Duty Fraud Alert on their account. Once one of the credit bureaus is notified and an Active-Duty Fraud Alert has been placed on your account per the Fair Credit Reporting Act they are required to notify all the other agencies so that you are protected. This is a free one-year (but can be amended to match the length of your deployment) fraud protection measure that requires lenders to verify your identity before opening a line of credit and removes your name from pre-screening credit card offers for two years.
Identity theft can happen to anyone, but service members and veterans face unique risks because of their military service and access to government benefits. Congress and federal agencies have recognized the growing threat of fraud targeting veterans and service members and will continue to develop initiatives aimed at preventing scams targeting the military community, but it is important to stay vigilant yourself. By understanding common scams, monitoring personal information, and taking advantage of available protections, members of the military community can significantly reduce their risk of becoming victims.
To speak with an attorney in the Fort Bliss Legal Assistance Office on this or any other topic, please schedule an appointment by emailing usarmy.bliss.hqda-otjag.mesg.bliss-legal-assistance-office@army.mil, or calling (915) 568-7141 during LAO business hours.
By Abigail Audlin, Fort Bliss Legal Assistance Office