In a Veterans Day address, California Attorney General Rob Bonta cautioned veterans to be vigilant against fraudsters seeking to exploit them and steal their hard-earned benefits.
Bonta discussed the issue of unaccredited claims representatives, or “claim sharks,” who exploit veterans with promises of faster claims processing or increased benefits. These claim sharks are, however, just a small part of a growing problem—and the full picture is far grimmer.
In 2022, the Federal Trade Commission estimated that veterans and their families lost more than $290 million to scammers and fraudsters. But that figure drastically increased in 2023, when veterans, service members, and their families were defrauded of $477 million in scams—a staggering 54% increase in one year. Veterans lost the most with a reported $350 million.
With each passing day, scams evolve. To exacerbate the issue, AI is being used to refine older tactics, blurring the lines between legitimate services and fraudulent schemes. Though these scams take many forms, they share a glaring commonality: Veterans are the primary targets.
The FTC’s estimates suggest that scammers disproportionately target veterans and their families. Scammers often target veterans, hoping to tap into their benefits, as they assume veterans lack up-to-date knowledge of the services at their disposal.
“On Veterans Day, and on all days, we recognize the significant sacrifices and contributions of veterans,” says Bonta in an official press release. “As part of our efforts to protect those that have protected us, today’s consumer alert raises awareness on those who exploit veterans, especially veterans requiring assistance with their benefits claims. I urge Californians to seek assistance from reliable and accredited channels to minimize the risk of falling victim to predatory practices.”
Some of the more common scams reported are frauds tied to gaming activities where victims see videos that claim they can win lots of money, but need to put in their details first or pay an entrance fee.
Another tactic involves contacting veterans from “official numbers,” claiming they qualify for funds from a “secret” or “pilot” government program. The goal is to capture veterans’ personal identifiable information (PII) to access their bank accounts or divert their Department of Veterans Affairs (VA) benefits to scammers’ accounts.
A.G. Bonta also warns of “claim sharks” pretending to charge veterans for access to military records or government documents—services that veterans can access free of charge at their local VA offices.
As stated by the A.G., claim sharks charge veterans for access to military records or government documents, a service veterans may obtain for free at their local VA offices.
Some go so far as to “advise” veterans on how to hide their money in trusts or annuity contracts presented by poachers. Others pose as active-duty personnel about to deploy, only to leverage the emotional connection for financial gain. Alternatively, fake charities claiming to assist veterans in need might reach out, seeking donations under false pretenses.
According to a American Association of Retired Persons (AARP) survey, 86% of military members and veterans had encountered at least one scam-related service within the last year.
Nearly half of veterans reported losing money to offers promising a lump-sum payout in exchange for handing over their veterans’ or disability benefits, while another third were scammed by requests to “update” their service records or donate to a veteran-specific charity.
This highlights the importance of veterans staying informed on current scam tactics and being wary of any offers that impose tight deadlines or seem too good to be true.
Before giving any information to someone claiming to be a VA staff, confirm their credentials with the Office of General Counsel Accreditation tool.
