It’s been happening to thousands of service members and veterans across the country. Scammers contact victims promising to solve the debt problems of those who serve our country, tricking them into paying to have their debts canceled or reduced by their current lenders.
It is being warned as part of a new national warning issued by the Federal Trade Commission (FTC), noting how scammers often behind the scheme have led to a rising number of complaints filed this year that are similar in nature to past claims. One such scheme involves a caller offering to help a service member or veteran enroll in a special “military debt forgiveness” program that in reality is fake.
According to the FTC, military members are increasingly becoming targets, losing thousands of dollars and being taken advantage of while serving. The commission says military-connected consumers reported more than 99,000 fraud complaints in recent years, resulting in more than $584 million in losses.
The AARP Fraud Watch Network said roughly 9 in 10, or 93%, of military members and veterans are targeted by scams each year.
“Military service members sacrifice a lot to protect our country,” FTC Commissioner Mark Meador said in a video statement posted on the FTC’s website. “But all too often, scammers try to steal their hard-earned savings.”
Meador said the scams targeting military members are especially alarming because they prey on the isolation, stress, fatigue and emotions that can come with active-duty deployments.
“You might get a call that looks like it’s from USAA or Navy Federal Credit Union, for example,” he said. “They say there’s fraud with your account and tell you to confirm your bank account number, username, or password.”
But no real bank or credit union will ever call and ask for that information. Only scammers will.
There are red flags or warning signs to beware. Meador cautioned hesitance and skepticism in certain situations, such as if a caller offers to help reduce or settle debts after one pays a fee.
“That’s a sure sign of a scam,” he said.
Military Influencer Has Experienced Scams Firsthand
Sgt. First Class Johnny Vargas, known as “Viva La Vargas,” is a military influencer, husband and father of four. He has had his influencer name and likeness used by scammers posing as him to target other unsuspecting military members.
“When I started to become popular on social media, fake accounts started popping up with scammers using AI to make fake videos asking others for money,” Vargas told Military.com. “They were very real. You would have thought the videos came from me.”
For Vargas, the scam attempts keep coming. At one point, his own mother was nearly scammed out of close to $10,000.
“They were going after people connected to me online, and one of them was my mom,” he said. “She got a call from someone pretending to be me, asking for money. She was minutes away from sending these people so much money, but something told her to pick up the phone and call me to ask, ‘What’s going on?'”
Meador said there are rules for debt forgiveness that all consumers, including service members and veterans, should know.
“It’s illegal for a debt relief company to charge you before they help you,” Meador said. “Some companies offer to enroll you in ‘exclusive’ military debt relief or veteran debt forgiveness programs, but those programs might not even exist. If you pay upfront, you might lose your money and get nothing in return.”
Vargas, a service member currently stationed in Copperas Cove, Texas, said there are all kinds of debt relief and emergency funds available to soldiers that can help them avoid being tricked.
“I would say to use the resources within their beach first,” Vargas said. “If they’re in the Army, apply for Army emergency relief. You could potentially get a free grant or low-interest loan to help.”
Overall, Vargas’s advice is to be vigilant and ask questions before signing up to send any money.
“I tell people all the time if you are unsure about something, especially over the phone, there’s a reason,” he said. “Everything is so fast-paced, people’s guards may be down and that’s when these scammers strike. Think critically and take your time and verify.”
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