How to Spot Scams Targeting Military Family Members

Before the enactment of the Military Lending Act in 2007, military families caught in the repayment cycle of lending and benefits scams paid 400 to 500 percent annual interest rates for loans. The new law protects military families by limiting the annual rate of loan products to 36 percent without an elective for the lender to refinance. With this issue resolved, more recent scams targeting military families involve identity theft.

Difficulty: Moderately Easy

Instructions

1. Beware of the Red Cross scam that specifically targets military family members. In this scenario, a con artist posing as a Red Cross representative calls a military family member and reports that a loved one serving on duty in Iraq was injured and sent to a hospital in Germany.

2. Expect the con artist to claim that your loved one is unable to receive treatment until the required paperwork is complete. The claim that you only need to provide your loved one's social security number and date of birth to finish the paperwork and get the treatment under way is false.

3. Pay careful attention to how the con artist asks for information. Your loved one's name is unidentified by the scammer and other significant details may be incorrect. Refrain from confirming your loved one's deployment.

4. Know military protocol. If your loved one deploys and suffers a serious injury, Red Cross representatives typically use the military chain of command instead of communicating with you directly.

5. Refuse to provide personal information over the telephone unless you know or you can verify the identity of the person. The scammer is trying to trick you into providing sensitive information that can make it possible for the individual to steal your loved one's identity.

6. Ask your loved one to place an "Active Duty Alert" on credit reports to guard against identity theft scams during a deployment.

[CaseyCarlton]

on 2/11/2009 Excellent information! 5 stars and a recommend

[jaenjana]

on 2/11/2009 great info!