They’ve sworn an oath to protect and defend the United States Constitution against enemies both foreign and domestic. But now, a different kind of enemy is taking aim at America’s service members, veterans, and their families by targeting their trust and their money.

According to a recent report from the Federal Trade Commission, military families lost a staggering $584 million to scams in 2024— an increase of more than $100 million compared to 2023.

So why is this group especially vulnerable?

“Scammers know that military families and military members usually have a large pension that will follow their service career,” says Breslin Steverson, spokesperson for the U.S. Postal Inspection Service. “So, like any scammer, they think they can get rich quick by targeting someone with access to money.”

To help combat these crimes, the U.S. Postal Inspection Service partnered with AARP to launch Operation Protect Veterans— a crime prevention program designed to provide resources to educate veterans and military families on the most common scams and how to avoid them.

THE ‘UPDATE YOUR FILE’ SCAM

One of the most common schemes targeting members of the military community is known as the “update your file” scam. It could come via a cold call, text, or email, but Steverson says the content of the request is what should raise a red flag.

“If anything starts off with ‘I need to update something’ or ‘I need your information’... stop, pause, ask yourself why?” he advises. “You can always reach out to your legitimate channels or chain of command [to double check]… because if somebody is asking for information that they should already have, it’s likely a scam.”

PCS (PERMANENT CHANGE OF STATION) RENTAL SCAM

Another growing concern is the PCS housing scam. When active-duty service members receive Permanent Change of Station orders, scammers may post fake rental listings near military bases, posing as landlords and demanding up-front security deposits or application fees. Then, as soon as you send the money, the scammer will disappear.

PREDATORY LOANS, ANNUITIES AND ‘MILITARY FRIENDLY’ LENDERS

Steverson advises maintaining the same level of caution when reviewing financial offers, like VA loans and dubious lending programs, or payday loans promising “instant approval” to military members.

If the loan terms sound too good to be true, the lender advertises exclusively to the military, and/or doesn’t require a credit check, there’s a good chance you’re dealing with a predatory lender. These lenders will lure veterans and military families into signing an agreement while burying high interest rates, fees, and penalties in the fine print.

“Any offer that seems too good to be true normally is,” says Steverson.

Predatory lending has long been a concern among the military community. So much so, the Military Lending Act was enacted as a federal law by the Department of Defense in 2006 to increase protections for service members and their families. Since then, the Consumer Financial Protection Bureau has reportedly recovered $175 million in financial relief for service members and veterans related to MLA violations.

Veterans, in particular, are often targeted by annuity companies or scam operations posing as pension management services.

“If somebody comes to you and says, ‘We’ve calculated your annuity. You’re going to get $700,000, and we can give you a lump sum of $600,000 right now,” explains Steverson. “But then they immediately say, ‘I need your routing number, your DD 214, your Social Security number. All this information so we can get your money.’ Once again, that is more than likely going to be a scam.”

VA BENEFITS AND PACT ACT SCAMS

The VA also warns veterans to be cautious when it comes to protecting their benefits, citing an increase in scams related to the PACT Act (which compensates military personnel and veterans for exposure to toxic chemicals). In PACT Act-related scams, criminals will seek payment to help veterans apply for the benefit. But it’s all a ruse, as veterans will never have to pay to apply for benefits or to receive their military records.

Currently, AARP says the most common PACT Act-related scams come via email and online offers claiming to help with the “Camp Lejeune Settlement.”

To read the VA’s official “Do’s and Don’ts” to Avoid PACT Act Scams and how to submit your application online securely to the Veterans Benefits Administration, click here.

ROMANCE SCAMS

Some scams get even more personal— like military romance and catfish scams that prey on veterans who are widowed or living alone. Steverson recalled one recent case in upstate South Carolina involving a retired Navy veteran.

“She was in her 80s, she thought she had been contacted by one of her fellow servicemen from back when she was in the Navy,” he said. “Her husband had just died, and somehow the scammers found out and they started a romance scam and ended up getting about $15,000 from her until her family caught on.”

HOW TO PROTECT YOURSELF

Because so many of these cases involve physical mail, the U.S. Postal Inspection Service plays a key role in investigating and stopping fraudulent activity.

“We are highly involved in romance, elder abuse, and military victim scams,” explains Steverson. “Because at some point, they need to physically get the money.”

If you act quickly enough, investigators may be able to intercept the fraud before the money disappears. But Steverson emphasized that many victims are reluctant to come forward.

“With our military community, a lot of times they’re ashamed to come forward because they are used to being our heroes, right?” Steverson explains. “And that initial embarrassment of saying, ‘Hey, I was victimized,’ usually stops them from reporting it.”

He wants military families to know: they are not alone-- and asking for help is not a sign of weakness or defeat.

“We love our military families…You’ve spent your whole career supporting us and protecting us. Let us do our job now,” says Steverson. “If you become a victim or you get scammed, reach out to us and we would be more than happy to investigate and follow up and try to bring that person to justice.”

If you or a loved one believes you’ve been targeted in one of these scams, you can report it to the United States Postal Inspection Service through the agency’s website by clicking here or by calling 877-876-2455.

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