Scams are running rampant online, over the phone, and in the mail. They show no signs of stopping as more and more of our information is available as companies continue to see record numbers of being hacked and customer’s information being stolen and sold. According to an Identity Theft Resource Center’s “Annual Data Breach Report,” there were 2,365 cyberattacks in 2023, with 343,338,964 victims, and 2023 saw a 72% increase in data breaches since 2021, which held the previous record.
Common Types of VA Claim Scams
It is no surprise either with the VA increasing its resources to military veterans with the PACT Act that Veterans Affairs claim scams have become a growing concern, targeting veterans who are trying to file for their benefits or appealing existing claims. These scams prey on veterans’ desire for faster claim processing or higher compensation, often leading to financial loss, identity theft, or fraudulent legal trouble. Here are the most common types of VA claim scams.
1. Imposter Claims Assistance
The Scam – Fraudsters pose as VA representatives, lawyers, or claims agents, offering to expedite the claims process for a fee. They often contact veterans via phone, email, or even in person, claiming they have insider knowledge or special access to the VA system.
The Danger – The scammer charges high fees for what is usually a free service, or they steal personal information (Social Security number, military records) to commit identity theft or fraud.
Warning Signs –
- Charging upfront fees for VA claims assistance.
- Promising quick approval or exaggerated compensation.
- Requesting sensitive personal information without a secure, official platform.
2. Phishing Scams
The Scam – Veterans receive emails, text messages, or phone calls that appear to be from the VA, asking them to update personal information, verify their identity, or click a link to access their claim. These phishing attempts often mimic official VA communications, making them hard to spot.
The Danger – By clicking on these malicious links or providing information, veterans may unknowingly give scammers access to their personal and financial data.
Warning Signs –
- Emails or messages asking for immediate action on a claim.
- Poor spelling or grammar in communication.
- Suspicious links or email addresses that do not end in “.gov.”
3. Pension Poaching
The Scam – Fraudsters approach elderly veterans or their survivors, offering to help them qualify for a higher VA pension or Aid and Attendance benefits by hiding assets or restructuring finances. Often, they suggest transferring assets into trusts or annuities that are not in the veteran’s best interest.
The Danger – These schemes can lead to financial exploitation, loss of assets, or disqualification from other benefits like Medicaid. In extreme cases, veterans may face legal trouble for fraudulently hiding assets.
Warning Signs –
- Offering to move money around or hide assets to qualify for benefits.
- Suggesting financial products that are difficult to access or costly.
- Pressuring veterans to sign documents without explaining the full consequences.
4. Fake Legal or Claims Representative Services
The Scam – Some scammers pose as accredited VA claims agents, attorneys, or Veterans Service Officers (VSOs), promising to represent veterans in their claims or appeals in exchange for high fees. They may appear legitimate by using official-looking documents or websites.
The Danger – In many cases, these so-called “representatives” are not accredited by the VA and provide either no real assistance or fraudulent advice. Veterans may end up losing money and have their claims delayed or denied due to mishandling.
Warning Signs –
- Lack of official VA accreditation (you can verify accreditation on the VA’s website).
- Requests for large fees, especially upfront, which is illegal for VA claims assistance.
- Offering guarantees of claim approval or higher compensation.
5. Guaranteed “Back Pay” Offers
The Scam – Some scammers promise veterans that they can secure “back pay” for missed compensation due to service-connected disabilities or other errors in their VA claims. They typically ask for a cut of the back pay or charge an upfront fee for their services.
The Danger – These offers often lead to financial exploitation without any real assistance. Back-pay claims are processed through the VA, and no third party can guarantee this outcome or expedite the process.
Warning Signs –
- Promises of retroactive pay for a percentage of the recovered amount.
- Offering “inside knowledge” or special connections to expedite the back pay process.
6. VA Disability Buyouts
The Scam – In this scheme, scammers offer to buy out a veteran’s disability compensation in exchange for a lump sum of money. The lump sum offered is usually far less than the total amount the veteran would receive over time.
The Danger – Veterans who accept these offers end up with much less than they would have received through their disability benefits over time, potentially jeopardizing their long-term financial security.
Warning Signs –
- Offers to “cash out” or “buy out” VA disability payments.
- Receiving unsolicited buyout offers through mail, phone, or email.
How to Protect Against VA Claim Scams
Here’s what you can do to protect yourself against these scams.
Use Official Channels
- Always file claims and manage VA benefits through the official VA website (va.gov) or your local VA office. Accredited Veterans Service Organizations (VSOs) can provide free claims assistance.
- Verify if a claims representative is accredited by checking the VA’s Office of General Counsel accreditation page.
- Be Wary of Upfront Fees.
Be Vigilant
It is important, as it always has been, to research those that you can trust and remember that if it seems ‘too good to be true’, than it probably is. The VA and accredited VSOs never charge fees for filing initial claims. Some attorneys may charge a fee for appeals, but it should be a reasonable amount and never upfront. If anyone demands payment for their services, it’s a red flag.
Whenever you receive any kind of solicitation over the phone, in the mail, or even in person, always double-check the source of any communication you receive about your benefits. If you receive anything suspicious in your email, on a phone call, or in a letter, contact the VA directly at 1-800-827-1000 to verify its legitimacy. You must guard all of your personal information. Remember to never provide your Social Security number, bank account details, or other sensitive information over the phone or via email unless you’re certain of the legitimacy of the request. The VA will not ask for personal information in unsolicited communications.
Report Suspicious Activity
If you believe you’ve been targeted by a scam, you can report the information, including the phone number, name, and any other info you gather to the VA Office of Inspector General (OIG) at 1-800-488-8244 or online. You can also contact the Federal Trade Commission (FTC) or your local consumer protection office.
Spread the word
The other important thing that veterans can do to help each other is spread the word. Inform your fellow veterans and service members by sharing information about common scams. Knowledge is one of the best defenses against fraud, and a well-informed veteran is less likely to fall victim.
