EDISON - Some financial experts tell News 12 New Jersey that scams targeting veterans and members of the military are on the rise.
Experts say that some of the scams target veterans by email or phone, with swindlers pretending to be with the Department of Veterans Affairs or veteran employment centers. The scams involve stealing the identities of the targets.
Financial planner Nahum Daniels says that some financial predators also target veterans who are in need of money by offering to buy out their military pensions, often for pennies on the dollar.
“For a lump sum cash payment today, you have to give up five years, 10 years, maybe a lifetime of future benefits, and there's no way you can get anywhere near equivalent value,” Daniels says.
Experts also say that servicemen and women are particularly at risk of identity theft when they're on active duty because they may be away from home for extended periods of time.
One way to reduce the risk of identity theft is to call one of the major credit reporting agencies and ask them to put an "active duty alert" on file.
Experts says that it works like a fraud alert. It makes lenders verify the customer’s identity, which makes it harder to get credit in the customer’s name.