As we take this day to reflect upon the sacrifices of past and present members of our military, Connecticut Better Business Bureau reminds military families that there are free resources to help them avoid being deceived or cheated out of their money by swindlers.
BBB urges consumers, donors, veterans and their families to be aware of some of the unscrupulous tactics they may face:
High-priced military loans — Advertisements for loans that promise a guarantee, instant approval or no credit check will often come with hidden fees and extremely high interest rates. Remember that legitimate lenders will never guarantee a loan before you apply and loans that require an upfront fee are likely a scam.
Veterans’ benefits buyout plans — This buyout plan will offer a cash payment in exchange for a disabled veteran’s future benefits or pension payments. The cash amount is only about 30-40% of what the veteran is entitled to. These buyout plans can be structured in several different ways, so research thoroughly before signing anything over.
Phony jury duty summons — A caller clams to work for the local court system and states that the service member did not show up for jury duty and now has a warrant out for their arrest. When the victim says they never got a summons, the caller will ask for a credit card number or Social Security number to clear up the matter.
Misleading car sales — Websites posting classified ads will offer false discounts for military personnel or claim to be from soldiers who need to sell their vehicle fast since they have been deployed. Upfront fees will be required via wire transfer, or the vehicle will have problems after purchase.
Expensive life insurance policies — Members of the military are often the targets of high pressured sales pitches that offer unnecessary, expensive life insurance policies. Solicitors may make false statements regarding the benefits that these policies offer.
BBB Military Line, the military arm of the Better Business Bureau, provides free resources, such as financial literacy information, access to BBB services and scam alerts, and complaint and dispute resolution and a few newsletter for all branches of the U.S. military.
BBB offers the following tips to avoid common scams:
Do your research — Get as much information as you can about a business or charity before you pay. Check out a business’ BBB Business Review at bbb.org or a charity’s Charity Report at give.org.
Don’t wire transfer money to anyone you don’t know - Money sent via wire transfer is practically impossible to track. Pay by credit card whenever possible, since you can dispute charges easily.
Protect your computer — Don’t click on links within unsolicited emails. Don’t enter personal information on unfamiliar websites. Make sure that you have updated anti-virus software installed and use a firewall at all times.
Put an Active Duty alert on your credit reports when deployed — Doing so will minimize the risk of identity theft because creditors and businesses cannot issue or grant credit until verifying identity.
For more information, visit bbb.org/us/military-line.