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“There is no greater fraud than a promise not kept.” – Gaelic Proverb
The men and women serving in our armed forces have their hands full protecting and defending their country. Often they also have to fight scammers and con artists.
 Identity Theft – “Active Duty Alerts”
Identity theft occurs when one person uses another person's identity and personal information to commit fraud. Military personnel are especially vulnerable when deployed away from their usual duty station. To protect against identity theft, military personnel may (and should) place an “Active Duty Alert” on their credit reports.
- Active Duty Alerts require creditors to verify the service member's identity before issuing credit. For service members deployed to an area where contact is difficult, they may authorize a personal representative to act on their behalf.
- Active Duty Alerts are for members of the military deployed away from their usual duty station.
- Active Duty Alerts are effective for one year, unless the service member requests earlier removal. If duty lasts longer than one year, another alert may be placed on the credit report.
To place an “Active Duty Alert” on their credit report, service members should contact one of the credit reporting bureaus, which in turn must contact the others:
Military Lending Act
The Military Lending Act covers payday loans, vehicle title loans, and tax refund anticipation loans. Under the new law:
- Loan products may not have a military annual percentage rate above 36%.
- These loans may not be automatically refinanced by the lender.
Phishing
Phishing occurs when internet fraudsters send spam or pop-up messages to lure unsuspecting victims into giving up valuable personal information (credit card numbers, bank accounts, Social Security numbers, passwords, or other sensitive information).
Currently there is an insidious phishing scam targeting families of military members, called the “Red Cross Scam.” In this scam, a caller who claims to work for the Red Cross notifies an individual that their family member has been injured while on duty. To get immediate aid to the injured service member, the caller says, paperwork must be completed, and personal information must be verified. Phishers are using this scam to get personal or financial information from their targets. Obviously some people are willing to stoop even lower than many of us can even imagine.
According to the American Red Cross, their legitimate representatives “typically do not contact military members or their families directly.” For more information, contact the Red Cross at: www.redcross.org or contact the nearest Red Cross Chapter.
To report a possible phishing incident, please call the Federal Trade Commission at 1-877-FTC-HELP (877-382-4357) or visit www.ftc.gov .
Military Sentinel
Military Sentinel is a joint initiative of the Federal Trade Commission and the Department of Defense. It keeps a centralized online collection of consumer fraud and identity theft complaints from service members and military civilian employees and their families. Military Sentinel serves the following purposes:
- Allows members of the military to file secure online complaint forms to a site created and maintained by the FTC.
- Helps military consumers avoid scams by providing online brochures, pamphlets and special alerts on a wide variety of topics such as: lending, credit, scams and used car sales.
- Forwards complaints to more than 550 law enforcement agencies throughout the FTC's Consumer Sentinel Network.
To file a complaint or for more information, visit www.consumer.gov/military or call the FTC at 877-FTC-HELP (877-382-4357).
Other Information:
Military HOMEFRONT – www.militaryhomefront.dod.mil
Military OneSource – www.militaryonesource.com or 800-342-9647. |
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