When was the last time you passively scrolled through an online community board? While it’s possible you didn’t feel in danger while scoping out secondhand furniture or a rental unit in preparation for your next move, it’s important to be aware that scammers could be trying to take advantage of unsuspecting individuals.
Financial readiness often involves understanding how to effectively engage with the marketplace, recognizing and avoiding fraud and scams, and making informed financial choices to establish a stable financial future. Fraudsters may target Soldiers and their Families during high-stress periods, such as deployment transitions or permanent change of station season. Research from the Better Business Bureau Institute shows that military consumers reported a higher median dollar loss to scams than nonmilitary consumers. Between 2019 and 2024, the BBB received 273,937 complaints from military customers.
“Knowing how to spot and avoid scams is a first line of defense,” said Dr. Cindy Morita, Acting Financial Readiness Program/Family Advocacy Program Manager.
Watch out for some of the top rip-offs, including fake rental listings, phishing attempts and investment frauds.
- Fake PCS rental listings targeting service members. Scammers post homes for rent online, requiring advance payments for properties they don’t own.
- Phishing scams. Emails or text messages from individuals pretending to be officials from the Defense Finance and Accounting Service or Tricare requesting personal or banking information and demanding payments. Do not click on any links or respond by providing personal information. Stay safe by contacting the organization directly.
- Investment fraud. Promises of high returns that turn out to be pyramid or cryptocurrency schemes. Morita said to always conduct research before you invest.
Choosing a safe payment method could be an effective, simple step against scams. Some payment methods offer little or no protection against fraud. Cryptocurrency, payment apps, wire-transfer companies and gift cards offer less fraud protection. These options can make it difficult to recover your money. Credit cards usually offer stronger fraud protection.
Access to trustworthy resources that educate Soldiers and Army Families about financial scams can also help safeguard their economic well-being. Military Consumer is a program designed for the military community. The website offers free resources to help teach individuals about fraud and assist them in making informed financial decisions. The Military OneSource podcast series also provides an episode on prevalent scams affecting service members. In the episode about online scams, Carol Kando-Pineda, Counsel with the Federal Trade Commission’s Division of Consumer and Business Education, educates listeners on scams that use artificial intelligence, text messages and tempting financial investment opportunities.
Having open, honest conversations about money and spending habits can also protect you and your Family against financial scams by fostering trust, teamwork and unity.
“When Families communicate about finances, they work together to set goals and solve problems, which builds resilience on every level,” said Morita.
The Financial Readiness Program aims to empower Soldiers and Families with the knowledge, tools and resources needed to achieve financial resilience and independence by helping individuals to not only manage their finances but also prepare for unexpected circumstances.
Sharpen your financial knowledge and stay ahead of scams by visiting the Financial Frontline website or by connecting with a financial readiness counselor at your nearest Army Community Service. To learn more about scams or to report a scam, visit the FTC website at https://consumer.ftc.gov/scams.
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