U.S. military veterans own majority stakes in more than 1.6 million businesses and represent 5.3% of this county’s business owners, according to the U.S. Small Business Administration. Even if you’re not a veteran business owner, however, your organization may employ veterans, active-duty service members, or military family members. When employees experience fraud-related financial loss, the resulting stress can affect focus, productivity, and overall well-being. It also can create added financial pressure, which may increase workplace risk and make fraud awareness an important issue for small businesses.

Fraud targeting veterans is especially concerning because scammers may use military service, government benefits, or trusted institutions to build credibility.

Common Threats

A 2025 AARP survey of veterans and active-duty military service members found that 27% of respondents had lost money to fraud. Among those who reported losses, most said they’d lost more than $500. Many victims believe their veteran status made them targets.

One of the greatest threats to vets is “imposter” fraud. In this scheme, a perpetrator calls, emails, or texts targets and pretends to be working for the U.S. Department of Veterans Affairs (VA) or another government agency. Perpetrators may claim they need personal information to authorize the release of benefits. Instead, they use that data to commit identity theft.

In a variation of this scam, perpetrators pose as financial advisors who convince vets to exchange their pensions for up-front cash payouts. Often, the payouts are worth less than the pensions. Or the fraudulent advisors may tout special benefits programs that can only be accessed by paying a fee. After paying, victims learn the programs don’t exist.

Unfortunately, many other types of fraud focus on vets and active-duty members. These include fake job recruiting, loan, tax, and charity schemes. One particularly vicious scam targets family members of deployed military personnel. Criminals claim the military member has been injured or is stranded and that the family must wire money to save their loved one.

In addition, the VA warns about schemes perpetrated by family members and caregivers. The agency says vets should deposit benefit checks only into their own accounts or into those of court-appointed or VA-accredited fiduciaries.

Defensive Moves

Whether you’re a veteran business owner or have vets on your payroll, fraud awareness can help identify and prevent schemes. For example, vets should know that if they receive a communication from someone claiming to be a government official, they should offer to contact the person at the agency’s official phone number listed on its website. They should never provide sensitive information — such as Social Security, bank account, or credit card numbers — to an unknown caller, emailer, or texter until they’ve independently confirmed the person’s identity.

In addition, vets need to:

• Protect accounts with strong passwords, multifactor authentication, password managers, and, potentially, fingerprint or facial recognition
• Apply software updates as soon as they become available
• Deny social media friend requests from unknown individuals or organizations
• Avoid phishing schemes by ignoring links or attachments contained in suspicious emails
• Regularly monitor credit report content and investigate any sudden drops in credit scores

 
Vets should be wary of offers claiming recipients must “act now.” Legitimate organizations understand that people need time to consider and research offers before handing over any money.

Spread The Word & Support Your Team

Fraud awareness is an important way to support veterans, active-duty service members, and their families within your organization and community. By sharing common red flags, encouraging employees to verify suspicious requests, and reinforcing practical prevention steps, businesses can help reduce exposure to veteran-focused scams.

We can help your organization evaluate fraud risks, strengthen internal controls, and share fraud awareness guidance with your team.