Military Consumer Month

Welcome to another Fraud Friday!

July is Military Consumer Month.  This month of awareness was organized by the Federal Trade Commission (FTD), Department of Defense, and Consumer Financial Protection Bureau (CFPB), and it is dedicated to raising awareness of consumer protections and financial readiness for military personnel, veterans, and their families.  This month serves as a vital reminder of the unique challenges faced by military families and the importance of protecting them from fraud and deceptive business practices.  Everyone is subject to fraud at any time, however, military consumers often face distinct circumstances that make them more appealing targets for scammers.  Let’s take a look at some of those reasons, common scams that target the military community, how Military Consumer Month helps raise awareness, and some tips for protecting these families from fraud.

What makes a Military Consumer more susceptible to fraud?  Here are just a few factors that make scammers think it is easier to target military families:

• Frequent relocations: Since service members and their families tend to move around a lot, they are more likely to deal with unfamiliar service providers and financial products.  Fraudsters know this and will prey upon military families earning their trust to set their scams in place.
• Deployment vulnerabilities:  Being away from home can sometimes limit a service member’s ability to monitor accounts and respond quickly to possible issues.
• Steady income:  The reliable income from military paychecks can make service members attractive to fraudsters and predatory lending.
• Younger demographic:  Many times, enlistees are in their late teens or early twenties, mostly just moved from their parents’ homes and not used to living alone or dealing with their own finances.  This definitely makes them more susceptible to scams.

Common scams that target the Military Community:

• Identity theft:  Scammers will steal personal information to open unauthorized accounts or make fraudulent purchases.
• Phony military discounts: Fraudsters may offer fake discounts to gain access to a service member’s personal or financial information.  Once they have the info they won’t hesitate to use it.
• Imposter scams: Scammers pose as government officials or military personnel to try and get sensitive information or extract payments.
• VA loan and benefit scams:  Veterans are often targeted with misleading refinance offers or schemes to access their benefits for a fee.
• Fake job offers: Sometimes scams promise high paying “veteran friendly” jobs but then require upfront fees for “training” or a background check.

How does Military Consumer Month help bring awareness?

• Educational campaigns via social media, webinars, and on base events highlighting common scams and how to avoid them.
• Free resources: The FTC and other agencies offer guides on managing money, understanding credit, and identifying fraud.
• Partnerships with installations:  Military bases work with government and nonprofit organizations to offer in-person support and financial counseling.
• Legal protections: The Servicemembers Civil Relief Act (SCRA) and Military Lending Act (MLA) do offer critical safeguards; however not all service members are aware of them.  Military Consumer Month helps to get the word out.

Tips for Protecting Military Families from Fraud:

• Monitor your credit
• Be skeptical of unsolicited calls, texts, emails requesting personal or financial information.
• Verify before trusting any claims of discounts, government programs, or financial offers.
• Report fraud to the FTC or local law enforcement.

Military Consumer Month is not only about raising awareness, but also about empowering a community that gives so much to us all.  Without the brave men and women of the United States Military, we would not have the freedoms we enjoy now.  By staying informed and vigilant, military families can better defend themselves against fraud, whether they are at home or abroad.