Memorial Day scams target military members

Memorial Day, the unofficial start of summer, also is a time to honor those who have lost their lives for the country. Unfortunately, scammers use this time of year to take advantage of victims in various schemes with a patriotic or military approach.

Common scams targeting members of the military

—High-priced military loans: Advertisements for loans that promise a guarantee, instant approval or no credit check often come with hidden fees and extremely high interest rates. Remember 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: That 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. Those buyout plans can be structured in several ways, so research thoroughly before signing anything over.

—Fake military discounts: Scammers advertise deep military discounts on vehicles, electronics or apartments, asking for payment upfront — then vanish.

—Permanent change of station moving scams: Fraudulent moving companies take deposits and disappear or hold belongings hostage for extra money.

—Expensive life insurance policies: Military members are often the targets of high-pressure sales pitches that offer unnecessary, expensive life insurance policies. Solicitors may make false statements regarding the benefits those policies offer.

—Deployment scams: Scammers pose as service members needing financial help to return home or release personal items from customs.

Tips to avoid scams

—Do your research. Get as much information as possible about a business or charity before paying or donating. A good start to your search would be to check out a business’ BBB Business Profile and/or see if the BBB has a report on the charity.

—Never wire transfer money to anyone you don’t know. Money sent via wire transfer is practically impossible to track. Pay or donate by credit card whenever possible because you can dispute charges more easily.

—Protect your computer. Don’t click the links within unsolicited emails. Don’t enter personal information on unfamiliar websites. Make sure 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.