VA Warning on Special Monthly Compensation, Aid & Attendance, and VA Claim “Sharks”
Veterans who qualify for VA benefits, including those with Special Monthly Compensation (SMC) and Purple Heart recipients are considered likely potential targets for scammers and exploitation. The Department of Veterans Affairs warns that some veterans are targeted due to their higher disability ratings and increased VA compensation.
How Bad Is the Problem?
According to data from the Federal Trade Commission (FTC) and AARP, active-duty service members, National Guard and Reserve members, veterans, and their families reported losing $584 million to scams in 2024 alone.
That is a substantial increase over past years. Veterans reported the highest number of fraud complaints within this community, with an individual loss of $700.
Scammers use tactics including identity theft and phony or misleading financial services, charging unnecessary fees for assistance that the VA provides free of charge.
In 2025, the VA issued a warning that increased scam activity was affecting veteran communities. The Federal Trade Commission says there are important warning signs to look out for as scammers become more brazen about their efforts.
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Don’t Give In to Pressure
The FTC advises, “Don’t work with anyone who pressures you to move your money around to qualify for a benefit.” This common scam tactic is designed to make the victim feel panicked and stop thinking clearly.
“Unscrupulous advisers may say they can make your financial situation look like you qualify for Aid and Attendance or other benefits when you’re not actually eligible. These advisers don’t tell you that, when VA discovers you don’t qualify, you have to pay back any benefits they already paid you.”
In addition, scammers charge fees “that range from hundreds to thousands of dollars for their supposed services.”
Do not let a third party “buy” your benefits. The FTC advises, “If you need to raise cash fast, some dishonest advisers may offer you a lump sum payment in exchange for a substantial portion of your future benefits payments.”
That may mean “giving over your future payments for a set period (for instance, 12 months). But when you sign over your benefits payments for an upfront payment, you won’t get all the money you would’ve collected over time.”
Scam Tactics and Red Flags
What are the warning signs veterans should look out for when they are contacted unsolicited by a third party? Remember that one thing most scams have in common is that you, the intended victim, did not initiate the contact. Beware third parties who contact you by phone, email, text message, or via social media who try to entice you with the following tricks:
- “Secret Veteran Benefits” or “New Programs”: Fraudsters may contact Veterans, often unsolicited, claiming to have access to little-known government programs or increased benefits, promising large sums of money. These are almost always fake and designed to extract personal information or money.
- Aid and Attendance Scams (Pension Poaching): Scammers posing as “financial advisors” advise veterans to transfer assets or incur inflated home health care expenses to artificially qualify for VA pension benefits. The VA can order the veteran to repay any falsified benefits to the government, not the scammer who profited.
- Unaccredited “Claims Sharks”: Individuals or companies may unlawfully charge veterans high fees for “help” when filing initial claims for VA benefits. Filing an initial claim should always be free if done through an accredited representative. Promises of expedited claims processing or guaranteed 100% disability ratings are also major red flags.
- Home Improvement Fraud (Targeting SAH Grant Recipients): Veterans approved for Specially Adapted Housing (SAH) grants should be highly suspicious of unsolicited offers for home improvement work. These operations include scammers going door-to-door, offering services with inflated prices, poor quality materials, or no intention of completing the work. Don’t agree to any offer made to you regarding VA benefits on your doorstep
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Protecting Your Benefits
The VA advises beneficiaries to take care when signing up for benefits. Go to the VA official site’s main address and begin your login process there. Don’t click on links in third-party email you did not sign up for. Don’t give your private data to third parties who contacted you first. Also:
- Never Share Login Credentials: Do not share your VA.gov usernames, passwords, or answers to security questions with anyone—this includes family members, unaccredited representatives, or anyone claiming to receive compensation from your VA benefits.
- Direct Deposit Security: VA benefits should only be electronically routed to a bank account with the veteran’s name on the account. For best results, put money in your caregiver’s name or any other bank account only if that person is a court-appointed or VA-accredited fiduciary. The beneficiary’s name must be on the account, and they must have direct access to it.
- Verify Accredited Representatives: If you need assistance filing a claim for VA benefits, work only with a VA-accredited Veterans Service Organization (VSO) representative, attorney, or claims agent. The VA’s Office of General Counsel (OGC) accredits these professionals to ensure responsible and qualified representation. You can verify their credentials using the VA’s OGC Accreditation Search Tool. While accredited attorneys and agents may charge fees for appeals after an initial decision, VSOs always provide their services for free.
Legal Consequences for Fraud and Resources for Victims:
The VA Office of Inspector General investigates fraud and works with the Department of Justice to hold perpetrators accountable. Code.
The Consumer Financial Protection Bureau (CFPB) also helps to protect servicemembers and families from financial exploitation. The CFPB has, historically, taken action against companies that have harmed veterans and provides resources to help navigate financial challenges.
Don’t Become the Victim of a VA Benefits Scam
Increased awareness is one of the most effective ways to combat these scams. Do you feel you are missing a VA benefits payment? Is there a discrepancy in your payments? Do you believe there is suspicious activity with your benefits for a Direct Deposit account? Contact the VA immediately at 1-800-827-1000.
Veterans who suspect they have experienced fraud can find resources to file a report with the appropriate agency by visiting VSAFE.gov or calling 833-38V-SAFE (833-388-7233).
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About the author
Editor-in-Chief Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.
