Be vigilant of scammers targeting SMC benefits, Purple Heart recipients

Veterans who receive higher compensation with Special Monthly Compensation (SMC), Purple Heart recipients, Veterans receiving income-based pension or survivors’ pension, and those receiving specially adapted housing (SAH) benefits are frequently targeted by bad actors.

The increased financial compensation associated with SMC benefits and the visibility of Purple Heart recipients can attract scammers looking to exploit Veterans. These scams range from identity theft and fraudulent investment schemes to fraudulent financial services charging unnecessary fees for services VA offers for free.

VA is committed to safeguarding Veterans, their families and caregivers against fraudulent activity, and it provides the following guidance to protect Veterans’ benefits and avoid benefit payment redirection.

• Do not share VA.gov usernames, passwords or answers to security questions with anyone—including family members, accredited representatives, or anyone who receives compensation from their VA benefits.
• Do not deposit VA benefits directly into a bank account that does not have the Veteran’s name on it, such as a caregiver’s bank account. VA benefits should be deposited into a bank account the beneficiary can access, and where the beneficiary’s name is included on the account. 

Pension poaching

VA pension and survivors’ pension are income-based benefits which are frequently targeted by bad actors in a scam called ‘Pension Poaching’. Pension poaching is a financial scam where bad actors advise Veterans to transfer assets or add unnecessary home health care expenses so they can adjust their income to qualify for VA pension or survivors pension benefits. Obtaining VA benefits through deceptive practices may require Veterans (and not the bad actor) to repay any falsified amounts. If a Veteran needs assistance filing a claim for VA benefits or services, they should work with a VA accredited Veterans Service Organization representative, attorney or claims agent.

Specially Adapted Housing Grant recipients

Veterans with a service-connected disability who have been approved for Specially Adapted Housing grants should exercise caution when hiring contractors. Many scammers go door to door, so be wary of uninvited home improvement salespeople. Veterans should obtain multiple bids for any home improvement project, take time to decide on a contractor, seek references, read reviews and contact licensing agencies for verification. Veterans should also take the following precautions:

• Verify necessary permits are filed with the city before the contractor initiates work. Regularly check on the progress of your home improvements. 
• Ask questions about the quality of materials, get a breakdown of costs for specific tasks, and verify the contractor’s source of labor and meeting licensing requirements by state.
• Always read contracts carefully. Legitimate businesses usually provide a contract to protect their business, and a well-written contract should protect the homeowner, too.
• Do not sign a contract with blank areas to be filled later by the contractor.
• Carefully read all contracts and do not sign them if they are not readily understandable. If there are questions, contact a lawyer for assistance.
• Do not be rushed into signing a contract. The salesperson or contractor should willingly leave the contract with the Veteran so they can read it carefully on their own time. If anyone exerts pressure to sign immediately or is unwilling to leave a copy for review, it is a red flag.

One of the best ways we can honor a Veteran’s service is to protect their benefits against scams by raising awareness and keeping them informed about the common scams impacting Veterans with high SMC benefits, Purple Heart recipients and their dependents.

If a Veteran is missing a VA benefits payment, identifies a discrepancy in payments or finds suspicious activity with their direct deposit account, they should contact VA immediately at 800-827-1000. Veterans who suspect they have experienced fraud can find resources to file a report to the appropriate agency at VSAFE.gov, by visiting https://vsafe.gov/, or calling 833-38V-SAFE.