Veterans Benefits Administration

• What is Fraud?
• Types of Fraud
• Payment Redirect
• Predatory Companies
• Pension Poaching
• Romance and Friendship Scams
• Education Scams
• Disability Benefits Questionnaires Fraud
• Protect Yourself from Fraud

What is Fraud?

Fraud is the intentional misrepresentation of information to gain undeserved payment. Fraud is increasing on a global scale, changing the way businesses and individuals protect themselves and their data. Veterans are often targets of fraud, and bad actors are becoming more sophisticated in their attacks. Veterans and their families have sacrificed much for our country and deserve to have their hard-earned benefits protected from fraud. Department of Veterans Affairs (VA) designs and executes strategies for internal and external stakeholders to educate Veterans, their beneficiaries, and stakeholders on fraud prevention. VA’s priority is to protect Veterans’ and beneficiaries’ and ensure they are safeguarded against fraudulent activities.

Types of Fraud

The Department of Veterans Affairs (VA) encourages Veterans and their beneficiaries to know the warning signs of the various types of fraud and the best practices to avoid falling victim to a scam.  

• Direct Deposit/Payment Redirection: A bad actor obtains Personal Identifiable Information (PII) and uses that information to unlawfully access and gain control of Veterans’ and beneficiaries’ accounts.
• Identity Theft: A scammer gains access to valuable, sensitive information, such as credit card numbers, for their own personal use or to resell on the dark web.
• Phishing: A common online scam where an imposter creates a fake online persona to deceive Veterans and their beneficiaries to provide PII.
• Email: A common type of scam in which a fraudster sends a fake email, often promoting a contest or reward, to trick a user into clicking on a malware link or obtain sensitive PII.
• Phone: A scammer pretends to be someone you trust and will try to get your money or your personal information to commit identity theft.
• Spoofing: A caller disguises the information shown on caller ID, giving them the ability to disguise or “spoof” the name and/or number to appear as though they are calling as a certain person from a specific location.
• Wired: A type of fraud that involves the use of some form of telecommunications or the internet.
• Forgery: The action of forging or producing a copy of a document, signature, banknote, or work of art.
• Malware: One of the top cyber schemes used by bad actors to infect computers. They may even hold your computer “hostage” with malware until you agree to pay a ransom - this type of malware is also known as “ransomware”.

Payment Redirect

Payment redirection occurs when a bad actor obtains your Personal Identifiable Information (PII) and uses that information to unlawfully access and gain control of your accounts. Once compromised, the bad actor redirects your VA benefits payments to new accounts or to prepaid debit cards, both of which they control. Your PII is vulnerable to phishing attempts and an array of email scams.

How do scammers target Veterans?

Bad actors are leveraging publicly available information from internet sources, social media, dark web, etc., to gather PII. With enough demographic information, these bad actors can call the VA’s National Contact Center and change Veterans’ bank accounts to redirect their payments. With stolen passwords and credentials, they can also access Veterans’ information through eBenefits or VA.gov.

What steps are being taken to protect Veterans?

VA is taking proactive measures to monitor Veteran’s benefits payments to protect and prevent fraudulent activity. When VA benefits fraud is reported or suspected, VA investigates the incident and initiates actions to protect the Veteran’s benefits, report those responsible for the alleged fraud and – when applicable, make the Veteran whole as quickly as possible.

Are there resources available? 

• If a Veteran is missing a VA benefits payment, identifies a discrepancy in payments, or finds suspicious activity with their direct deposit account, contact the VA immediately at 1-800-827-1000.
• Contact VBACO@VA.GOV via email if you are or have been a victim of fraud.

Predatory Companies

VA is committed to raising public awareness about predatory entities, and we are educating Veterans, their families, and partners about the dishonest behavior, activities and strategies utilized by these entities. One of the schemes VA and Veterans Service Organizations are fighting is related to the PACT Act, which is the biggest expansion of Veterans benefits in history. VA was recently notified about predatory companies targeting Veterans who were stationed at Camp Lejeune. These companies are pressuring Veterans to sign contracts allowing company attorneys to represent them in federal lawsuits filed in response to the Camp Lejeune Justice Act.

How do scammers target Veterans?

• Predatory companies are aware of potential large retroactive payments and are targeting Veteran benefits.
• Scammers target potentially eligible Veterans to access their PACT Act benefits or submit claims on their behalf.
• Predatory companies may act aggressively with emails outlining a sense of urgency and pressure Veterans and/or beneficiaries to act immediately without enough information.
• Such companies use advertisements to promote a need for legal representation. These advertisements relate to the recently added presumptive disabilities associated with toxic exposure. Predatory companies may promise a faster turnaround when using their services for filing VA claims.
• Be cautious of companies who may contact Veterans and/or beneficiaries on behalf of VA or claim to have affiliation with VA guaranteeing a certain amount of VA benefits.

Are there resources available? 

• If a Veteran is missing a VA benefits payment, identifies a discrepancy in payments, or finds suspicious activity with their direct deposit account, contact the VA immediately at 1-800-827-1000.
• Apply directly to VA or with an accredited representative. Veterans may submit their application(s) for VA benefits securely online or at any regional office.

Pension Poaching

Pension Poaching is rapidly evolving as a preferred method used by criminals to defraud elderly Veterans, survivors, and their families who are potentially eligible for VA benefits. Fraud poses a real threat to your benefits and services, and fraud is a complex challenge for everyone, that often targets older Veterans. Fraudsters’ schemes are constantly evolving. These criminals are constantly changing their tactics and we are committed to protecting your Veteran benefit payments by employing industry-leading fraud prevention techniques, by educating you about fraudulent activity trends, and by sharing proactive measures you and your fellow Veterans can apply to avoid falling victim to these criminals and their schemes. 

What tactics do fraudsters use? 

Older Veterans are targets of fraud schemes related to sweepstakes, contests, charities, health products and in-home health care services, home improvements and equity skimming, and to banking or wire transfer fraud.  

We know that fraudsters are using Pension Poaching scams to target Veterans who are age 65 or older, their families, caregivers, and their survivors. In fact, Pension Poaching is becoming a preferred method to defraud older Veterans. Pension Poachers profit by falsely helping Veteran claimants artificially qualify for VA pension benefits. The scheme often involves financial maneuvers like advising you to hide your assets in trusts or annuity products they present to you. 

What steps can you take? 

• Be wary of callers stating they can help you file a claim for pension for a minimal fee or guarantee a percentage of benefits you will be granted. 
• Be suspicious if someone offers to move your assets around to qualify you for VA pension. You may be required to repay benefits to the government. 
• Never share your personal information. Never share your username or passwords for VA.GOV, or for other VA credentials. 
• Never, ever sign a blank form someone else will fill out later. See the contents before you sign and keep a copy for yourself. 
• DO NOT deposit VA benefits directly into any family member’s or caregiver’s bank account unless that person is a court-appointed or a VA accredited fiduciary. 
• Be alert, identity theft is not always committed by strangers – it could be someone you know.  
• Frequently change and maintain strong passwords using a combination of letters, numbers, and character variations, and never use any of your Personal Identifiable Information in the password. 

Are there resources available? 

• Find out more about pension benefits and qualifications at: va.gov/pension. 
• If a Veteran is missing a VA benefits payment, identifies a discrepancy in payments, or finds suspicious activity with your direct deposit account, contact the VA immediately at 1-800-827-1000.

Romance and Friendship Scams

At VA, we are committed to monitoring fraud trends to identify new schemes and tactics that may affect Veterans and their beneficiaries. Romance and friendship scams have been recognized as a growing threat. A fraudster starts by targeting an online space, such as a dating app or social media platform. They create a fake profile, using images/name of an actual person, and connect with the victim through a friend request or message and begin communication. Fraudsters attempt to establish a quick relationship or friendship with the individual through friendly gestures and consistent messages. Once trust is gained, they will request money, personally identifiable information (PII), or other compromising information.  

How do scammers target Veterans? What are the warning signs? How can you tell if a profile is fake or misleading?  

First, pay attention to their messages and communication style. Are they overly flattering? Do they attempt to establish a relationship or friendship too fast? Fraudsters may make statements like, “I know we just started talking last week, but I consider you to be one of my best friends, and I hope you feel the same.” 

Second, a fake profile may avoid video and phone calls or in-person meetings. They use excuses like a broken computer or phone camera or that they live far away. Another sign is if an online friend or love interest schedules in-person meetings or video calls but consistently cancels. If you haven’t been able to confirm their identity, but they continue to message you, it could be a sign of fraud.  

Third, they request monetary assistance or ask for PII. Fraudsters can try to coerce you into sending money for a trip to meet them or to help with financial woes. Additionally, they might request PII that could be used to access your VA benefits or conduct identity fraud. A fraudster may say something like, "I'm a Veteran too, so I can help you set up that account! Can you send me your social security number or home address?".

Fourth, an online user might ask for private photos or potentially comprising messages. Fraudsters can use this content to blackmail individuals into sending them payment or PII.  

What steps can you take to protect yourself?  

• Trust your instincts. Fraudsters may be overly flattering or attempt to quickly establish a relationship or friendship. If your online interactions with a user seem too good to be true or feel disingenuous, cease communication immediately. 
• Request a phone or video chat early. With online friends or love interests, ask to schedule a call after connecting to confirm they match their profile.
• Check for evidence of suspicious activity. Perform a Google search with the name of the individual and include the words “scam”, “review” and “complaint”.
• Conduct a reverse-image search. A proactive safety measure is a reverse-image search, which could help confirm if profile photos are legitimate. For instructions on how to perform a search, follow this link.
• Do not automatically trust someone with your personal identifiable information (PII). Scammers may try to gain access to PII through emotional appeals or monetary requests. For more information on data that is considered PII, please visit the VA Privacy website.
• Never send bank information or payment to “online friends” or others. Fraudsters may request monetary assistance for financial woes or to destroy photos or conversations. If you are being blackmailed, do not respond, and report the incident.

Are there resources available? 

If a Veteran is missing a VA benefits payment, identifies a discrepancy in payments, or finds suspicious activity with your direct deposit account, contact the VA immediately at 1-800-827-1000.

Education Scams

The Department of Veterans Affairs (VA) wants to ensure Veterans are informed when using their GI Bill benefits and make the best education decisions during their academic years. We encourage Veterans and their beneficiaries to recognize the warning signs of education fraud and the best practices to avoid falling victim to a scam.

What are some examples of education scams?

Job Scams:

Job Boards or Advertisements targeting specific demographics may be misleading or fake and require personal information or money to get the job. You can find free, official information about federal jobs at USAJOBS.gov, FedsHiresVets.gov, and CareerOneStop.org. Your State’s Department of Labor may have job listings, contacts for local job offices, and resources for counseling and referrals. 

Student Loan Scams:

Educational institutions may promise immediate student loan forgiveness or debt cancellation to entice Veterans to enroll in classes. For most borrowers, Loan Forgiveness is only available through programs requiring many years of qualifying payments or other qualifying criteria. Here is a List of Student Debt Relief “Do’s and Don’ts” to help borrowers avoid scams.

Scholarship Scams:

Educational institutions may “guarantee” Veterans a scholarship in exchange for a redemption/processing fee.  

Seminars:

Veterans may be promised a scholarship and financial aid under the guise of high-pressure sales pitches where they feel pressured to pay immediately or risk losing the so-called “opportunity.”    

Free Gifts:

Veterans may be promised incentives such as free laptops, gift cards, or other “freebies” for enrolling in courses.    

What steps can you take to protect yourself?

VA wants to ensure Veterans are equipped with accurate information about the cost and quality of educational institutions and programs to make informed decisions about their education.  

• Choose GI Bill Approved Schools. Use the WEAMS Institution Search Tool to find GI Bill approved schools. 
• Use the GI Bill Comparison Tool. Compare the benefits you’ll receive at different schools.   
• Learn about the Principles of Excellence Program. The program requires schools that receive federal funding through programs such as the GI Bill to follow certain guidelines.    
• Check out the National Resource Directory Database. The database provides validated resources that support recovery, rehabilitation, and reintegration for service members, Veterans, family members, and caregivers. Scammers may try to appear legitimate by using official sounding names, logos, websites, or showcasing a false affiliation with the VA. 
• Find schools that take part in the Yellow Ribbon Program. The program can help you pay for school costs not covered by the Post-9/11 GI Bill.    

Are there resources available?

• Find out more about education benefits and qualifications at VA Education And Training Benefits | Veterans Affairs.
• If you miss a VA education benefits payment, identify a discrepancy in payments, or find suspicious activity with your direct deposit account, contact the VA immediately at 1-800-827-1000.

Disability Benefits Questionnaires (DBQ) Fraud

Disability Benefits Questionnaires (DBQs) allow Veterans to submit medical evidence from their health care provider to support their claims for disability benefits. In most instances, Veterans are entitled to a no-cost disability examination by the Department of Veterans Affairs (VA). However, with the rise of DBQ scams, VA wants to ensure Veterans, even those who choose to have their private healthcare provider complete a DBQ, are appropriately equipped with the information they need to know to submit DBQs successfully.

What is an example of a DBQ scam?

VA wants Veterans to be aware of individuals and companies marketing the service of completing DBQs. Unfortunately, there has been an increase in instances where individuals and companies are engaging in questionable and fraudulent practices, including charging high prices for completing DBQs and completing DBQs remotely with falsified information.

What steps can you take to protect yourself?

Before attending an examination and/or having a medical professional complete a DBQ, VA encourages Veterans to become familiar with the guidance below:

• Veterans Health Administration (VHA) and VA Contract Examiners are trained in how to conduct C&P disability examinations and there are no costs or hidden fees involved.
• A VA Claims Processor determines whether a compensation & pension (C&P) exam is needed. If needed, the Claims Processor will identify if the C&P exam will be performed by a VHA Examiner or Contract Examiner.
• The use of VHA Examiners and VA Contract Examination Vendors reduces claims processing time by increasing access to examinations.

Items to consider when providing DBQ’s:

• VA values evidence from a Veteran’s private treatment provider(s) because they are familiar with the medical history, often over a long period of time. VA will not pay or reimburse any expenses or costs incurred in the process of completing and/or submitting DBQs completed by the Veteran’s healthcare provider.
• VA may determine an additional disability examination is required to complete the claim for disability benefits. When a VA examination is scheduled, the claimant must cooperate by reporting for the examination.
• All clinician information blocks at the bottom of the DBQs must be completed, signed, and dated by the clinician completing the DBQ. 
• VA reserves the right to confirm the authenticity of ALL DBQs completed by healthcare providers. Information submitted is subject to verification through computer matching programs with other agencies or any other means deemed appropriate by VA.
• Veterans should remain cautious of companies claiming to be contacting them on behalf of VA. There are accredited VSOs, agents, and attorneys that can help Veterans who need assistance.

Are there resources available?

• View the VA Exams Fact Sheet to learn more about DBQ’s and qualifications.
• If a Veteran is missing a VA benefits payment, identifies a discrepancy in payments, or finds suspicious activity with your direct deposit account, contact the VA immediately at 1-800-827-1000.

Protect Yourself from Fraud

VA is committed to raising public awareness about predatory entities, and we are educating Veterans, their families, and partners about the dishonest behavior, activities and strategies utilized by these entities. As one of many steps towards increasing awareness about predatory companies, VA would like to highlight the following fraud prevention guidance.

Best Practices

• Apply directly to VA or with an accredited representative. Veterans may submit their application(s) for VA benefits securely online via VA.GOV or in person at any regional office.
• If a Veteran is missing a VA benefits payment, identifies a discrepancy in payments, or finds suspicious activity with your direct deposit account, contact the VA immediately at 1-800-827-1000.
• If you are interested in working with an accredited Veteran Service Organization, agent, or attorney, you can validate their credentials utilizing VA’s OGC Accreditation Search Tool.
• If an entity is projecting misinformation or has questionable business practices regarding VA entitlements, Veterans/Veteran Advocates may file a complaint with the Federal Trade Commission.

Do's and Don’ts

• Do be cautious of companies advertising Veterans can only obtain VA benefits with their help. These companies may not be recognized by VA and may be trying to charge illegal fees.
• Do be cautious of aggressive companies who may try to pressure you to sign their contract. Typically, they see frequent communications or insist “you must act now or lose your chance for benefits.”
• Do review all documents thoroughly. Veterans should never sing a blank form for someone else to complete later. They should always review the completed form before signing and retain a comp of the completed form for their records.
• Do update your technology often: Update your computer’s operating system, your internet browser, and the software on your mobile devices. Updates generally include the latest security patches. Be sure to also use antivirus and antispyware software to remove malicious programs from your computer.
• Do be mindful of the numbers you use: Don’t use any part of your Social Security number (or any other numeric sensitive information, such as your dates of military service or birthdays) as a password, user ID, or personal identification number (PIN). Use strong passwords that have eight or more characters, including letters, numbers, and symbols.
• Do be careful where you click: Look for security-enabled website addresses that start with “https”. The extra “s” indicates security. These sites take extra measures to help secure your information. If you suspect a link might give you a virus or steal personal data, don’t click on it. Only purchase or download apps from authorized stores.
• Do not sign a contract agreeing to pay an unauthorized company a fee to help with VA claims. There are accredited Veterans Service Organizations, agents, and attorneys that can help Veterans who need assistance.
• Do not sign a blank form for someone else to complete later. Veterans should always review the completed from before signing and retain a copy of the completed form for their records.
• Do not be fooled by companies advertising they have special relationships with medical professionals and can guarantee the Veteran a benefits award. If these companies are defrauding the Federal government, Veterans can be held responsible for paying those benefits back.
• Do not provide your social security number, medical records or other personally identifiable information to anyone offering claims assistance before confirming their credentials using VA’s Office of General Counsel Accreditation tool.
• Do not sign forms that are not VA generated or are a third-party authorization for someone to provide “behind-the-scenes” claims assistance.
• Don’t share personal information online: The more you post about yourself on social networking sites, the easier it may be for someone to use that information to access your VA accounts, steal your identity, and more. Maximizing your privacy settings on social networking sites can also help protect your personal information.

Are there resources available?

U.S. Department of Veterans Affairs (VA):

• If a Veteran is missing a VA benefits payment, identifies a discrepancy in payments, or finds suspicious activity with your direct deposit account, contact the VA immediately at 1-800-827-1000.
• Advise all Veterans to file for free online through VA’s website or in person at a VA Regional Office. 

Office of General Counsel (OGC):

• If you are interested in working with an accredited Veteran Service Organization, agent, or attorney, you can validate their credentials utilizing VA’s OGC Accreditation Search Tool.
• Recommend accredited representatives assist with filing claims as they are vetted in VA law and policy and available at no cost.

Federal Trade Commission (FTC):

• Notify the FTC if an entity is projecting misinformation or has questionable business practices regarding VA entitlements, Veterans/Veteran Advocates may file a complaint with the FTC.

Consumer Financial Protection Bureau (CFPB):

• CFPB is dedicated to making sure everyone is treated fairly by banks, lenders and other financial institutions. To submit a complaint about a financial product or service Submit a complaint | Consumer Financial Protection Bureau (consumerfinance.gov)

VA’s Identity Theft:

• If a Veteran has concerns about their VA services being impacted by identity theft, they can call the toll-free VA Veteran Identity Theft Helpline: 1-855-578-5492 or visit the following sites: VA Identity Theft Prevention or VA Privacy.