Veterans are increasingly becoming prime targets for investment scams. Scammers often exploit the trust, camaraderie and sense of service that defines the Veteran community, using convincing tactics to lure Veterans into costly traps. It’s essential to recognize the warning signs of investment scams and to stay alert to protect your financial future.

There are many investment scams aimed at defrauding Veterans, including but not limited to:

• Affinity fraud: Fraudsters win your trust by claiming they’re part of a group you identify with (for example, a military Veteran). They may claim their investment opportunity will help you gain access to special military or VA benefits or promise to “unlock” extra funds just for Veterans.
• Cryptocurrency investment scams: Fraudsters promise big profits through investments in cryptocurrencies like Bitcoin, but often steal your money or identity instead.
• Precious metal fraud: Scammers convince people to buy precious metals like gold or silver, often at inflated prices or metals that don’t actually exist.
• Pyramid schemes: A fraud scheme where you pay to join a business and must recruit others to earn money, rather than selling real products or investments.
• Real estate investment scams: Fraudsters pitch fake or misleading real estate deals to get your money, often involving property that doesn’t exist or isn’t for sale.
• Training investment scams: Scams that sell expensive “training” or seminars, promising they’ll teach you how to get rich investing, but deliver little or no real value.

Warning signs of an investment scam:

• Unsolicited contact via email, social media or text message.
• High-pressure sales pitch.
• Claims you can only participate in the investment because of Veteran status.
• Vague or complicated strategies.
• Claims of low-to-no risk investments.
• Promises of unreasonably high profits.  

Investigate before you invest

VA is dedicated to helping defeat scammers by equipping Veterans with tools to quickly identify fraud tactics. Below are a few ways to help protect yourself from potential investment fraud:

• Watch out for unsolicited offers: Be extra cautious if someone contacts you out of the blue by phone, text, email or social media, especially if they claim to be a fellow Veteran. Be cautious of invitations to “Veteran-only” investment events or seminars, particularly those advertised on social media.
• Ask for everything in writing: Always ask for written information about the investment. Review it carefully, and don’t be afraid to ask more questions.
• Be wary of “too good to be true” offers: If someone promises high returns with little or no risk, it’s likely a scam. Real investments involve some risk.
• Consult a trusted source: Talk to a financial advisor, a trusted VA representative or someone else you trust before investing your money. If you use an investment professional, be sure to do a background check on investor.gov to ensure the person is licensed and registered.
• Keep your information private: Legitimate organizations or investment companies will not ask for your VA.gov login information, DD214 or other sensitive documents for investment purposes. Don’t share your military records, Social Security number, or financial details unless you know that the person or organization asking for it is legitimate and that their need for that information is valid.
• Take your time: Don’t let anyone rush you into making a financial decision. Legitimate offers will give you time to think and ask questions.
• Verify before you invest: Make sure the company and person offering the investment are registered and licensed. You can check with your state regulator or the U.S. Securities and Exchange Commission (SEC).

Don’t fall for these scams!

Staying vigilant and recognizing the warning signs is the best way to keep your personal information safe. For more information on how to protect yourself, visit the VA News webpage and VA’s fraud prevention page.

If something seems wrong:

Contact VA: If you miss a VA benefits payment, identify a discrepancy in payments or find suspicious activity with your direct deposit account, contact VA immediately at 1-800-827-1000.

Contact VSAFE: If you suspect you have experienced fraud, you can find out more and report to the appropriate agency at VSAFE.gov or by calling 833-38V-SAFE (833-388-7233).

Your information and your benefits are valuable. Let’s work together to outsmart scammers and keep your hard-earned benefits secure.