Don't be a target! Learn how to identify and avoid the top scams targeting service members and get tips to safeguard your information and finances.
Article: 11 minutes
Updated: September 15, 2026 Published: January 14, 2022
By: USAA Reviewed by: Editorial contributors
Military members and their families are frequent targets for scammers who understand military culture, pay schedules and common life transitions. From phishing emails, smishing text messages and identity theft to car buying scams, fraudsters use increasingly sophisticated tactics to steal money and personal information. By learning how these scams work, recognizing warning signs and practicing strong financial and cybersecurity habits, service members can better protect themselves, their families and their finances.
Scams targeting service members can lurk around any corner. Learning about these common scams is the first step to avoid being a victim.
According to the Federal Trade Commission, in 2025 Americans lost a staggering $16 billion to fraud, a 25% increase from 2024. Military families are particularly at risk. In 2025, military consumers lost $684M to fraud. It seems that every year, scammers get smarter and use savvier tricks to access your hard-earned money.
And scammers understand the military. They know military terminology. They know that military members receive a steady paycheck. They know what you're posting online.
New service members are especially vulnerable because they could be receiving a paycheck for the first time and may not be fully aware of how many scams are out there.
Read on for tips that can help you recognize scams targeting military veterans and service members before they cripple your finances.
Scammers can be so convincing that many service members give out personal information before realizing they've been scammed. Unfortunately, recovering this money is difficult, if not impossible, once you've provided your information, even if you gave it inadvertently.
But if you educate yourself on the types of fraud and scams that are out there, and how you should respond if you notice unusual behavior, you're in a better position to protect yourself and your finances.
If it’s too good to be true, it probably is. That’s how an investment scam works. They offer a promise of a great return and that secure financial future we all want. They come in many different forms:
How to protect yourself:
Identity theft is when someone steals your personal information and uses it to commit fraud or open accounts in your name. Here are some common warning signs:
One way you can protect yourself is by guarding your personal information. Shred bills or other important documents instead of throwing them in the trash. Don't share private information in public places and beware of phishing or imposter scams designed to trick you into giving out your banking information.
FBI's Internet Crime Report of 2025 reports that people lost over $215 million to phishing and spoofing scams in 2025.
These scams try to trick you into revealing sensitive information, like passwords, Social Security numbers and credit card numbers.
Scams via text or email can be convincing, using official-looking logos and return email addresses. Even if you don't have the intention of sharing personal information, simply clicking the link they provide can add malicious software to your device and allow the scammer to track and record your online activity.
Scammers impersonate government officials, financial institutions, tech support or loved ones to trick you into sending money or personal info. For example:
None of these messages are true, of course. Here’s how you can stay safe:
If financial institutions like banks or credit unions need to notify members of fraudulent activity, they typically send a fraud alert via SMS text message that'll refer you to your banking app. They don’t call you and ask you for your multifactor authentication code, PIN or online password. If you receive a call or text that seems unusual, contact your financial institution right away using a verified number for their customer support.
With a car scam, a dishonest dealer may offer to sell or lease you a high-performance sports car when all you can afford is an inexpensive compact, or their financing department may saddle you with an unfairly high interest rate. Or someone is selling a used car online, but they don’t actually own it and are simply taking your hard-earned money.
One way to avoid some car scams is to know how much car you can afford. Knowing this before even stepping onto the car lot can help keep you from being tempted by a car you can’t afford.
And before you even talk to the financing department, you can avoid any potential unfair high interest rates by seeing what your interest rate can be.
In this scenario, the scammer first befriends you on social media, then tells you they know a way to make big money. You give them credentials to your account such as login information, PIN or debit card information, and they deposit fake checks into your account. Then they withdraw the money from an ATM and give you a cut of the cash.
Afterward, the scammers coach you on how to make a claim with your bank so you can be reimbursed for the withdrawal. Knowingly doing this to defraud your bank makes you an accomplice to their crime.
Never give out your credentials to people you don’t know and trust.
Sometimes scammers pose as legitimate employers or recruiters to steal money or personal information from job seekers. These scams have surged in recent years, especially with the rise of remote work and online recruiting platforms.
Red Flags:
How to stay safe:
Some scammers offer to stop foreclosure or modify loans for a fee, often targeting vulnerable homeowners.
Here are some red flags:
How to stay safe:
Artificial Intelligence has made it much easier for scammers to make fake social media accounts or dating app accounts with attractive profile pictures. First, they will friend you and gain your trust and then start asking for small things.
Sometimes the scammer will say they're overseas, so they can't meet in person. This sets the stage for them to claim they're in an accident and need money.
Often, the fraudster gets away with this scam because the victim is too embarrassed to admit it, much less report it.
Here are some red flags:
Here are some ways to stay safe:
Beware of this common scam, in which criminals prey on people's natural desire to help others, especially their family members.
With a grandparents scam, the scammer might call and report that your grandchild was in an accident. You're inclined to believe them because they disclose convincing personal details, such as information they’ve been able to find online or on social media. For example, where the grandchild goes to school, who they're dating, where they last vacationed, etc.
While the 12 habits below give specific actions to take to help avoid scams, they can be summarized with S.T.O.P.
Stay cautious. Always be on alert when someone asks for information or money.
Take your time. Scammers want to rush you. Slow down and think before you act.
Only trust verified sources. Double-check information through trusted channels.
Protect your info. Never share personal or financial details unless you're sure who you're dealing with.
Find out how to avoid scams, stay safe and report fraud if it happens.