Consumer alert: New York warns military of rising scams

ALBANY, N.Y. (NEXSTAR) — State officials sent out a consumer alert to warn military members and their families about an uptick in scams in their community. The New York Department of State’s Division of Consumer Protection pointed out that, last year, successful cons cost vets, service members, and families roughly $584 million.

Service members can be easy targets because of their reliable incomes and benefits, the strong sense of community that scammers can manipulate, and frequent moves to new locations. According to data from the Federal Trade Commission cited by DOS, this cohort filed almost 100,000 fraud reports in 2024. The most common scams involved imposters, online shopping fraud, and investment-related tricks.

The warning that scammers are likelier to target the military than the general population comes as part of Military Consumer Protection Month in July. New York Secretary of State Walter Mosley said, “Service members, veterans, and their families give so much to protect our country, and their sacrifice should never make them a target for scammers.”

Social engineering means manipulating people to divulge confidential information that compromises security. Scammers will use social engineering techniques to exploit human psychology, relying on speed, confusion, or the tendency to be polite to trick their mark into volunteering information that grants access to accounts or resources.

DOS offered recommendations to help protect against these threats, like preventing identity theft by using a renewable “Active-Duty Alert.” The Federal Trade Commission says that active-duty members report being the victims of identity theft at much higher rates than other consumers. Placing that alert on a credit report means that for one year, businesses have to verify identities before issuing new credit. It also removes names from unsolicited credit and insurance marketing lists for two years.

Contact any of the three main credit reporting agencies—Equifax, Experian, or TransUnion—to add an Active-Duty Alert. Whichever agency you notify is then supposed to notify the other two.

DOS also warned about credit monitoring scams that target deployed members. The agency instead recommended that active-duty military and National Guard members use free credit monitoring services provided by the FTC and credit bureaus.

To protect purchases and investments, always research thoroughly, avoid impulse buys, get a vehicle history report if applicable, and find credible opinions, comparisons, and reviews from many sources. If buying or selling a vehicle or making a major purchase, beware of military-friendly sellers offering steep deals while claiming to be related to deployed or deceased service members.

Also beware websites and listings on marketplaces like eBay, Facebook, or Craigslist that offer military discounts but demand payment up front. For financing, research carefully and avoid instant approval military loans that promise no credit check, as they’ll often carry high interest rates and hidden fees.

Fake rental properties with unusually low rents or military discounts near bases can be spotted if you learn to recognize red flags like stolen photos. Plus, the state warns against using wire transfers or money transfer apps to pay application fees or deposits. Instead, use a check or credit card.

Don’t give your personal or financial information to anyone that you didn’t initiate contact with. Service members and their families should never give personal information by phone or by clicking on email links. DOS explained how scammers pretend to be someone else—friends on social media, romantic interests on dating apps, or even fellow service members—to gain trust and steal information or money.

Protect yourself if a company or a person asks for money or financial information, especially via social media, email, phone, text, or dating apps. Stop communicating, research them, and confirm that they’re legitimate. If they’re someone you know, directly open up a new line of contact to them to verify. Otherwise, just ignore them and report it for fraud.

Remember, a debt collector representing a company or debt that you don’t recognize could be a scam. Ask for all the related information, including the collector’s or company’s name, the company’s street address, telephone number, license number (if required in cities like New York City or Buffalo), and validation of the debt.

Some payment methods can be difficult or impossible to trace, making it nearly impossible to get your money back, so always beware if asked to pay through a money transfer app, by reloadable gift card, or another unusual way. Don’t trust communications that exclusively come through social media, messaging apps, or email, especially if they won’t give you alternate contact methods.

DOS also warned to watch out for impersonators from Defense Finance and Accounting Services or another military group. They contact members or spouses by phone, email, or text, claiming that computer problems accidentally deleted information, and ask for credentials to reenter so they can process payments. Or they’ll send emails with links or attachments that install malware or steal passwords. According to DOS, legitimate military organizations like DFAS won’t ask for personal financial information like account numbers or passwords.

Consumers can file complaints online at https://www.dos.ny.gov/consumerprotection or reach the Division of Consumer Protection through DOS on social media. DOS also offers mediation for consumers and businesses that can’t reach an independent resolution. Contact their consumer assistance helpline at (800) 697-1220 Monday through Friday from 8:30 a.m. to 4:30 p.m.