CONSUMER ALERT: New York Department of State’s Division of Consumer Protection Warns Against Scams Targeting Service Members During Military Consumer Protection Month

In recognition of Military Consumer Protection Month, the Department of State’s Division of Consumer Protection is warning members of the military community to be aware of scams targeting service members. According to the Federal Trade Commission, the military community lost more money to scams in 2024 compared to the rest of the population. Fraud cost veterans, service members and their families $584 million in 2024, with a total of 99,443 fraud reports within the community during that time.

“Service members, veterans and their families give so much to protect our country, and their sacrifice should never make them a target for scammers,” said Secretary of State Walter T. Mosley. “That’s why we’re equipping them with the tools they need to recognize and fight back against scams. This Military Consumer Protection month and every month, we stand with our military community and remain committed to protecting them from exploitation and fraud.”

Why the Military Community is At Risk
Members of the military community are frequent targets of scammers due to their unique circumstances including their steady income, benefits and sense of camaraderie within the military community. Additionally, frequent relocation can lead to increased vulnerability to scams. These combinations of circumstances create vulnerabilities that scammers are eager to exploit. The top types of scams targeted at military members, veterans and their families include imposter scams, online shopping scams and investment-related scams.

How to Protect Yourself and Your Family Against Scams
The Division of Consumer Protection recommends all active-duty service members, veterans and their families follow these scam prevention tips to help identify when something isn’t right and help ensure they are prepared to protect their personal information, accounts, identity and money from fraudulent practices.

TIP #1: PREVENT IDENTITY THEFT BY USING AN “ACTIVE-DUTY ALERT”
The Federal Trade Commission (FTC) reports that active-duty service members file reports of identity theft at much higher rates than non-military consumers. If you are called to active duty, put an “Active-Duty Alert” on your credit report to minimize your risk for identity theft. Benefits include:

• Businesses must verify identity before issuing new credit.
• Lasts one year but is renewable.
• Removes names from marketing lists for unsolicited credit and insurance offers for two years.

To add an Active-Duty Alert on your credit report, contact any one of the three main credit reporting agencies here: https://www.identitytheft.gov/CreditBureauContacts. Once you have placed an Active-Duty Alert on your credit report with one of the bureaus, that bureau will send a request to the other two bureaus to do the same, so you do not have to contact all three.

Don’t fall for credit monitoring scams: These scams target active-duty members who are being deployed. They offer to monitor credit and defend against identity theft, but instead they use the victim’s credit information to go on a spending spree, leaving the victim to foot the bill. An Active-Duty Alert on your credit report is the safer way to protect your credit. If you prefer to monitor your credit, the FTC, in collaboration with the credit bureaus, provides free credit monitoring services to active-duty military personnel and members of the National Guard. For details on how to sign up for the free credit monitoring, go to the websites for each of the credit reporting agencies Equifax, Experian, and TransUnion.

TIP #2: PROTECT YOUR PURCHASES AND INVESTMENTS
No matter where you shop, do your research first. It’s important to search online for credible opinions from trusted sources and compare reviews from a variety of websites.

Know what to look for when buying or selling a vehicle: A vehicle is one of the most expensive purchases you will make. If you are buying or selling a vehicle, below are a few red flags to look for:

• Be skeptical of so-called “military friendly” sellers: Scammers often do this to get you to let down your guard. Be wary of anyone that is offering an “incredible deal,” sometimes claiming to be the family of a service member who was recently deployed or died in combat. In both situations, the scammer is using service member affinity to discourage you from looking too closely at the deal or negotiating in good faith.
• Be cautious of fake websites or fake listings: These fake websites often post ads that offer discounts for military personnel but charge upfront fees that require a wire transfer. Scammers often list vehicles for sale on online marketplaces like eBay, Facebook and Craigslist. The scammers collect a deposit but never deliver the vehicle.
• If you’re buying: Research the vehicle and its cost. Some dealers try to overcharge service members, offer unfavorable terms or add on expensive optional products, like paint protection, service contracts or Guaranteed Asset Protection (GAP) insurance. Don’t act on impulse or pressure. Salespeople will often want you to buy the car immediately, but you should take the time to research the price and check out the car carefully, including getting a used vehicle history report.
• If you are selling or trading in a vehicle, use a resource like Kelley Blue Book, Edmunds or the National Automobile Dealers Association’s Guides to determine how much your current car is worth.
• If financing, do extensive research to understand your options. Be wary of “instant approval” military loans (“no credit check,” “all ranks approved”) that can have high interest rates and hidden fees.

Learn to identify fake rental properties: Scammers will often steal a photo from the internet to create a fake rental listing in an effort to steal your deposits or the private information on your rental application. Often, these scams target military personnel looking for housing near a base and may offer military discounts. Be cautious of listings that are advertising an unusually low rent or are much nicer than other properties at that price point. Make sure to pay any application fees or deposits by check or credit card. If you are required to pay a fee via wire transfer or money transfer app to see the property, this is a red flag that the listing may be fake.

TIP #3: KNOW WHO YOU ARE DEALING WITH

• Scam artists will often portray themselves as someone they are not to trick you into giving them your personal information or money. They may pose as a friend on social media, a romantic interest on a dating app or a fellow service member to gain your trust. If someone reaches out to you over social media, email, phone, text or dating apps and asks for money or financial information, protect yourself. If the request comes from someone you know well, contact them directly to verify it was them. If it is someone you don’t know or don’t know well, ignore them and report the fraud. Never provide personal or financial information to someone if you did not initiate contact with them. These may be attempts to steal your identity and gain access to your money.
• If a debt collector contacts you and you don’t recognize the company or the debt, first request information including the collector’s or company’s name, the company’s street address, telephone number, license number (if you’re in a municipality that requires one, such as New York City or Buffalo) and validation of the debt to ensure the debt collector and the debt are both legitimate. Unscrupulous debt collectors will often insist you owe a debt even if you don’t.
• Be wary if you are asked to pay in an unusual manner, such as a money transfer app or by using a reloadable gift card. Some payment methods can be difficult to trace or untraceable and it will be nearly impossible to get your money back.
• Be suspicious of anyone who communicates exclusively through social media, messaging apps or email. Be especially wary of those who refuse to give you alternate methods to contact them.
• Watch out for impersonators who pretend to be from Defense Finance and Accounting Services or another military group. They will contact members or their spouses by phone, email or text. They may claim that due to computer problems, your information was lost and needs to be reentered to process payments. In other cases, their emails contain links or attachments that can put malware on computers to steal passwords and account information. DFAS and other military organizations generally do not ask for personal financial information, account numbers or passwords.
• As a general rule, service members and their families should never give personal information by phone or by clicking on links in emails to an unknown company or person. When in doubt, disengage from communication until you have had time to research the company or person to make sure they are legitimate.

About the New York State Division of Consumer Protection
Follow the New York Department of State on Facebook, X and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics. Sign up to receive consumer alerts directly to your email or phone here.

The New York State Division of Consumer Protection provides voluntary mediation between a consumer and a business when a consumer has been unsuccessful at reaching a resolution on their own. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumerprotection. The Division can also be reached via X at @NYSConsumer or Facebook.