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Attorney General Mayes Alerts Arizona Veterans to 10 Scams Targeting Military Benefits, Pensions, and Personal Information

Press Release - Attorney General Kris Mayes

PHOENIX — Following a roundtable with Arizona Veterans and consumer advocates yesterday, Attorney General Kris Mayes today issued a consumer advisory warning the state's nearly 500,000 veterans of an increasing number of scams targeting military benefits, pensions, and personal information. The advisory, released ahead of a roundtable with veterans advocates, identifies ten fraud schemes — including VA impersonation, pension poaching, and phishing for personal information — and provides guidance on how veterans and the organizations that serve them can recognize and report suspicious activity.
 

"Veterans put their lives on the line to protect every one of us," said Attorney General Mayes. "The people who prey on them — who look a hero in the eye and steal from them — are among the most contemptible criminals we see. By educating veterans and their families, we can make Arizona the hardest state in the nation to scam a veteran. And for those who try anyway — my office will find you, and we will hold you accountable."

Why Veterans Are Targeted


Arizona is home to nearly 500,000 veterans — one of the largest veteran populations in the nation. Scammers deliberately target this community because veterans and service members often have: <

  • Steady income streams from VA disability payments, military pensions, or GI Bill benefits
  • Trust in institutions and authority — scammers exploit this by impersonating the VA, DoD, or government agencies
  • Familiarity with military jargon, which fraudsters mimic to appear legitimate
  • Life transitions (deployment, discharge, retirement) that create financial decisions and vulnerability

Scammers are increasingly turning to social media to perpetrate their fraud. It is important to be hyper-vigilant online and extremely wary of anyone that contacts you unsolicited via Facebook messenger, WhatsApp, Instagram or any other social media platform.
 

10 Common Scams Targeting Veterans

 

  1. Pension Poaching — Unethical advisers promise to increase VA benefits by restructuring assets. Schemes often involve annuities or trusts with hidden fees that reduce overall lifetime income. Always verify advisers at va.gov/ogc/accreditation.asp before sharing financial information.
  2. Benefits Buyout — Fraudsters offer a lump-sum "buyout" of disability or pension benefits. The payout is far less than the lifetime value of benefits, and these arrangements may violate federal law. Apply for benefits only at va.gov or through a VA-accredited claims agent. Never sign over benefits.
  3. Claims Sharks — Unaccredited companies or individuals charge illegal fees to help file VA benefits claims. Federal law prohibits charging fees for benefits assistance without VA accreditation. Legitimate VA-accredited reps assist at no charge. Report fee-charging agents to VA OIG: www.vaoig.gov/hotline/online-forms/submit-a-complaint
  4. Fake Veterans Charities — Scammers pose as veterans charities, collecting donations that never reach veterans. They use emotional appeals and real-sounding organization names. Research charities at CharityWatch.org, give.org, or charitynavigator.org before donating.
  5. Military "Special Deals" — Scammers offer exclusive discounts on cars, electronics, or travel for military members. After payment — often wired — goods are never delivered. Payment requests involving cryptocurrency, gift cards or other untraceable forms of payment are a major warning sign. Research any seller with the BBB first.
  6. VA Impersonation — Fraudsters call or email claiming to be from the VA, requesting Social Security numbers, bank information, or payments to "process" benefits or health coverage. The VA will never call unsolicited requesting payment or personal info. Hang up and call the VA directly: 1-800-827-1000.
  7. Predatory Lending — Lenders target veterans with high-interest personal loans or illegal advance-fee loans, often misrepresenting them as VA-backed products. Legitimate VA loans go through approved lenders only. Visit benefits.va.gov/homeloans.
  8. VA Overpayment / Debt Scam — Scammers impersonate VA employees via text or email, claiming the veteran owes a debt and must pay immediate "fees" through gift cards, wire transfer, or payment apps. The VA sends debt notices by official mail only. Never pay through unofficial channels — call the VA Debt Management Center: 1-800-827-0648 or visit www.va.gov/manage-va-debt/.
  9. "Veteran Savings Program" Mailers — Fraudsters send postcards promoting nonexistent savings plans, often promising fake dental coverage or monthly payments. The real goal is harvesting personal information — name, SSN, Medicare or VA ID numbers. The VA does not solicit benefit sign-ups by postcard. Call the VA at 1-800-827-1000 to verify any mailed offer before responding.
  10. Phishing for Personal Info — Fraudsters pose as VA representatives by phone or email, claiming they need to "update your file" to maintain benefits. They use urgency and official-sounding language to extract SSNs, bank account numbers, or VA file numbers. The VA will never contact you unsolicited to request personal information. Hang up or delete the email, then call the VA directly: 1-800-827-1000.
 
Warning Signs of a Scam


Stop and verify if someone:

  • Asks for payment via wire transfer, gift cards, cryptocurrency, money order, or cash
  • Creates urgency — "Act now or lose your benefits" — to prevent you from thinking clearly
  • Requests your Social Security number, VA file number, or bank information over the phone, by email, by text or through social media
  • Promises to "guarantee" or dramatically increase your VA benefits for a fee
  • Contacts you unsolicited claiming to be from the VA, DoD, or a government agency
  • Asks you to sign documents you haven't had time to read or have reviewed by a trusted advisor
 
For Veterans Advocates & Service Organizations


Advocates play a critical role in early detection and prevention. Consider these best practices:

  • Conduct fraud awareness check-ins during routine veteran services appointments
  • Display this advisory and AG Office materials prominently in waiting areas and resource centers
  • Help veterans verify VA accreditation of any claims agent or financial adviser they are working with
  • Encourage veterans to pause before signing any financial documents and bring them to your organization for review
  • Report suspected scams on behalf of veterans who may be reluctant — complaints to the AG Office are confidential
     
How to Report Fraud

AZ Attorney General's Office: azag.gov/complaints/consumer or by calling (602) 542-5763

VA Office of Inspector General: vaoig.gov or by calling 1-877-777-4021

Federal Trade Commission: reportfraud.ftc.gov

AZ Department of Veterans' Services: dvs.az.gov or by calling (602) 255-3373

Better Business Bureau of AZ: bbb.org/scamtracker

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