Scams that target veterans and servicemembers — and the benefits no one can charge you for
Imposters posing as the VA or your bank, "advisors" who charge to file claims that are always free, and pension poachers after your benefits — veterans and servicemembers lose hundreds of millions a year. Here is a clear guide to the scams aimed at the military community and how to shut them down.
Scammers target the military community on purpose, and the numbers show it works: military servicemembers, veterans, and their families reported losing over $470 million to fraud in 2023 alone, the FTC reports, with imposter scams the top category for both groups. The cruelty is in the tailoring — these cons are built around the benefits people earned through service. Here’s a guide to the main ones, and the simple rules that defeat them.
The benefits scams: “help” that’s really a fee — or a theft
The most service-specific scams revolve around VA benefits.
- Paid “claim help.” Someone offers to file or boost your VA claim for a fee or a percentage. It’s illegal: the VA is explicit that charging claimants to file a benefits application is against the law, and the FTC notes scammers “charge filing fees for services that are always free through the Department of Veterans Affairs.” Accredited VSO (Veterans Service Organization) representatives do this for free.
- Pension poaching. Aimed at older veterans and survivors, “pension poachers” profit by “falsely helping Veteran claimants artificially qualify for VA pension benefits,” per the VA — often by urging you to “hide your assets in trusts or annuity products,” while posing “as caregivers, attorneys or financial planners.” The VA also warns of aggressive “claim sharks” working by mail, phone, and online.
- Benefit buyouts. Be wary of any offer to give you a lump sum now in exchange for signing over future benefit payments. Your benefits are meant to go directly to you — redirecting them is how scammers get their hands on the money.
The throughline is one rule: Never Pay to Get Paid. Applying is free, and your benefits belong to you alone.
The imposter calls: the VA or your bank “calling about a problem”
For both servicemembers and veterans, the FTC says imposter scams are the single biggest fraud category. Two flavors dominate:
- Government imposters. Callers claim to be from the VA (or another agency) about your benefits, status, or a “problem,” fishing for personal information or payment. This is the military face of the government-imposter scam.
- Bank imposters. The FTC has flagged imposters “pretending to be representatives of USAA Bank, Navy Federal Credit Union, and other banks,” asking for your “Social Security, bank account, or credit or debit card number, or your password,” with urgent stories like a blocked card. Those banks are impersonated, not calling — the move is the same as in the bank “fraud department” call, and never read back a code (see the verification-code scam).
The rule across all of them is Go Direct: hang up and reach the VA or your bank yourself — through VA.gov or the number on your card.
Romance and identity scams aimed at the community
Two more hit the military world hard:
- Fake servicemember romance scams. Criminals steal real soldiers’ photos to run romance scams impersonating deployed soldiers — and use military life as the excuse to never meet.
- Identity theft. The FTC notes active-duty servicemembers are more likely than other adults to report identity theft — frequent moves and widely shared records add exposure. An active-duty fraud alert and a free credit freeze are strong, free defenses.
The veteran’s quick checklist
- Never pay a fee or a percentage to file a VA claim — it’s free through an accredited VSO.
- Never sign over or redirect your benefits; they go directly to you.
- Treat trust/annuity “qualify for a pension” pitches as pension poaching.
- The VA and your bank won’t call for your SSN, password, or a code — hang up and go direct.
- Report fraud to the VA OIG hotline and the FTC at ReportFraud.ftc.gov; find free resources at MilitaryConsumer.gov.
For more, see the named defense moves or test your eye on the 60-second quiz.
- Someone offers to "help" you apply for or increase VA benefits — for a fee, or a cut of your benefits.
- A caller claims to be from the VA or your bank about "blocked" cards or "fraud," and needs your SSN, account number, or a code.
- An "advisor" urges you to move assets into a trust or annuity so you can qualify for a pension.
- Applying for VA benefits is always free. Charging a fee to prepare or file a VA claim is illegal — accredited VSO representatives help at no cost.
- Never sign over, redirect, or share a cut of your benefits. They should go directly to you and no one else.
- The VA and your bank won't call asking for your SSN, account number, password, or a verification code. Hang up and contact them directly.
- Be wary of anyone pushing trusts or annuities to "qualify" you for a pension — that's the pension-poaching playbook.
The detail that should make everyone angry is how specifically this preys on service. Scammers don’t target veterans by accident — they tailor the con to the benefits people earned, then charge them to access money that is theirs by right and free to claim. So if I could tattoo one fact onto every benefits letter, it’s this: nobody can legally charge you to file a VA claim, and your benefits belong in your hands and no one else’s. The moment a ’helper’ wants a fee or a cut, the helping stopped — and the scam started.
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Frequently asked
Someone offered to help me get my VA benefits for a fee. Is that allowed?
No — it's illegal. The VA warns that an "advisor" who "requests payment for their service(s) in filing and submitting a VA benefits application" is breaking the law, since "it is illegal to charge claimants" for that. The FTC says the same: scammers "charge filing fees for services that are always free through the Department of Veterans Affairs." Accredited Veterans Service Organization (VSO) representatives provide this help for free — so any fee is your signal to walk away.
What is "pension poaching"?
It's a scam aimed at older veterans and survivors. The VA describes "pension poachers" who profit by "falsely helping Veteran claimants artificially qualify for VA pension benefits" — often by advising you "to hide your assets in trusts or annuity products they present to you." They may pose "as caregivers, attorneys or financial planners." The maneuver can lock up your money, cost you fees, and even disqualify you from other benefits. The VA also warns about aggressive "claim sharks" using pressure tactics by mail, phone, and online.
I got a call about fraud on my military bank account. Could it be real?
Treat it as suspect. The FTC reports imposters "pretending to be representatives of USAA Bank, Navy Federal Credit Union, and other banks," asking for "your Social Security, bank account, or credit or debit card number, or your password," using urgent excuses like a "blocked" debit card. Those banks are being impersonated — they don't make these requests. Hang up and call the number on the back of your card.