Military Consumer Protection Month

Military Consumer Month: Protecting Your Financial Readiness

Every July, Military Consumer Month reminds us that financial readiness is an important part of mission readiness. Military families face unique challenges, including frequent PCS moves, deployments, and changing duty stations, as well as targeted scams that attempt to exploit these transitions.

Whether you’re serving on active duty, in the Guard or Reserve, are a veteran, or part of a military family, understanding your consumer rights can help protect your finances and your future.

Why Military Families Are Frequently Targeted

Military families experience a range of financial pressures that can make them attractive targets for fraudsters:

• Frequent relocations
• Tight moving timelines
• Young service members building credit
• Overseas assignments
• Predictable military pay schedules

These circumstances can make military families attractive targets for fraud, identity theft, predatory lending, fake rental listings, and VA benefits scams. The FTC, CFPB, and the Department of Defense continue to work together each July to educate military consumers and reduce fraud.

Common Scams Targeting Military Personnel

Understanding the common scams that target military communities is the first step in combating them. Some prevalent scams include:

• Phishing Scams: Fraudsters may pose as government officials or representatives from reputable financial institutions, attempting to steal personal information through deceptive emails or phone calls.
• Identity Theft: Military personnel are prime targets for identity theft due to the extensive personal information they share with government agencies and the public nature of their service.
• Rental and Real Estate Scams: When relocating, service members may fall victim to fake PCS housing listings or real estate deals, losing significant amounts of money.
• Charity Scams: Fraudsters exploit the generosity of military communities by creating fake charities that claim to support veterans and service members.

Resources and Tools for Military Consumer Protection

Several organizations and government agencies offer resources to help military families protect themselves from financial fraud and make sound financial decisions:

• Federal Trade Commission (FTC): The FTC provides a wealth of information on consumer protection, including specific resources for military personnel. Their website offers tips on avoiding scams, managing finances, and reporting fraud.
• Consumer Financial Protection Bureau (CFPB): The CFPB offers a dedicated Office of Servicemember Affairs, which provides educational resources, complaint submission services, and policy advocacy to support military families.
• Military Consumer: A collaborative initiative involving the Department of Defense, the FTC, and other organizations, Military Consumer offers tools, resources, and events to promote financial readiness among service members.
• Legal Assistance Offices: Most military installations have legal assistance offices staffed with attorneys who can provide free legal advice on a range of issues, including financial matters and consumer protection.
• Servicemembers Civil Relief Act (SCRA): The SCRA provides interest rate reductions on qualifying pre-service loans and protections for leasing, mortgage, and foreclosure rights.
• Military Lending Act (MLA): The Military Lending Act helps protect service members and their dependents by capping rates on consumer loans, requiring important disclosures before borrowing, and restricting certain predatory lending practices.

Steps to Take for Financial Protection

Military families can take proactive steps to protect themselves from financial fraud:

• Stay Informed: Regularly check for updates on common scams and financial threats targeting military communities.
• Secure Personal Information: Use strong passwords, enable multi-factor authentication, and regularly monitor financial accounts for suspicious activity.
• Educate Family Members: Ensure that all family members, especially young service members, are aware of potential scams and know how to protect their personal information.
• Use Trusted Resources: Rely on resources and advice from reputable organizations and government agencies dedicated to military consumer protection. Pioneer Military Credit offers free resources for military life. Visit the Learning Center for blogs and articles on personal finance for military families.

By leveraging the resources available and remaining vigilant, military families can safeguard their financial futures and navigate the unique challenges of military life with confidence. Military Consumer Protection Month serves as a reminder of the importance of financial literacy and vigilance, empowering those who serve to protect not only their country but also their financial well-being.

Frequently Asked Questions