Military Issues

Families of military personnel face a unique set of challenges when it comes to identity theft and keeping themselves safe. Their personal information is part of the larger credit system, just like everyone else, but they are also part of the military system, which adds an extra layer of susceptibility.

The families of active duty military personnel face a set of unique credit issues. In my Blog Talk Radio show, I interviewed Paul Richard, Executive Director of the Institute for Financial Education, an organization that has extensive history helping military families deal with credit and financial issues.

Protect Your Credit

Plan ahead to protect your credit while you are away. If you are deployed away from your usual duty station and do not expect to seek new credit while you are deployed, consider placing an "active duty alert" on your credit report. An active duty alert requires creditors to take steps to verify your identity before granting credit in your name.

The alert is effective for one year unless you ask for it to be removed sooner. And if your deployment lasts longer than a year, you may place another alert on your report.

To place an active duty alert, or to have it removed, call the toll-free fraud number of one of the three nationwide consumer reporting companies. The company you call is required to contact the other two. If you cannot perform this function yourself, the law allows you to use a personal representative to place or remove an alert.

The Service Members' Civil Relief Act. Know your rights! The SCRA provides many protections to military families and enables you to focus on your military duties without worrying about financial and legal obligations at home. This law applies to all military personnel--those entering the service, on deployments, called to active duty, or whose service is extended.

SCRA:

• requires lenders to charge no more than 6 percent interest on credit cards and other loans you had before military service or activation. The cap does not apply to student loans.
• protects you and your family from eviction from housing due to nonpayment of rents that are at or below a set amount ($2,720.95 in 2007).
• entitles you to end residential housing and business property leases, and personal or business car leases.
• entitles you to be reinstated in any health-care plan you had the day before your active duty began if that insurance was terminated because of your service.
• delays civil court actions, such as bankruptcy, foreclosure, or divorce proceedings.
• allows you to defer income tax payments for up to six months after discharge.
• protects your life insurance from being canceled for nonpayment of premiums.
• permits you to postpone payments on pre-service professional liability insurance.

To learn more about SCRA, contact your unit judge advocate or installation legal assistance officer. You can also find information online at military.com

Military Sentinel is a project of the Federal Trade Commission and the Department of Defense that identifies and targets consumer protection issues that affect members of the United States Armed Forces and their families.

Military Sentinel  allows members of the United States Armed Forces to enter consumer complaints directly into a database that is immediately accessible by over 500 law enforcement organizations throughout the United States, Canada, and Australia. These law enforcement agencies use this complaint data to target cases for prosecution and other enforcement measures. The information from Military Sentinel  can also be used by members of the JAG staff and others in the Department of Defense to help protect armed services members and their families from consumer protection-related problems.

If you have a complaint to file simply go to Military Sentinel and click on the appropriate branch for U. S. Army, U. S. Marines, U. S. Navy, or U.S. Air Force at the top of the page.

Military Money.com was created to highlight specific financial issues and challenge affecting service members and their families. The site includes the Military Money Minute. A new daily sixty-second spot on the Armed Forces Radio Network, delivering savvy advice on issues from military tax breaks to financial scams and more.

Scam alert
Red Cross "phishing" scam
The Federal Trade Commission is warning consumers about a scam targeting families of military members. A caller, claiming to work for the Red Cross, notifies an individual that their family member has been injured while on duty. To get immediate aid to the injured service member, the caller says, paperwork must be completed, and personal information must be verified. This scheme is a variation of "phishing"-a technique identity thieves use to get personal or financial information from unwary consumers. The identity thief claims to represent a trusted source-a bank, a government agency, or in this case, The American Red Cross-to get someone to divulge their personal information. The FTC urges military family members not to give out personal information on the phone if they are contacted by an individual they don't know-or via the Internet if the message comes via e-mail.

Families of fallen soldiers targeted
A "phishing scam" targeting the families of fallen soldiers reportedly has con artists promising compensation in exchange for information that might aid them in identity theft. The scam artist pretends to be from the Defense Finance and Accounting Office or the Army Human Resources Command, according to an Army G3 Information Paper. The families of deceased soldiers are informed that they are entitled to monetary compensation in excess of $12 million that will be available to them in one week of responding to the request for additional information. Don't fall for this scam--do not share your personal information.

Nigerian Counterfeit Cashier's Check Scam
Service members and their families have reported a recent outbreak of the Nigerian Counterfeit Cashier's Check Scam. The scammer will reply to an ad and ask if he can pay for the merchandise using a check. Then, the scammer concocts a reason for writing a check for more than the purchase price, and asks the seller to wire back the difference after he deposits the check. The scammers often target consumers who sell high-priced items through classified or online auction ads. Service members who receive suspicious checks or have questions regarding these scams should contact their local legal assistance office.

Families of Iraq-deployed soldiers targeted
A current scam involves a phone call from someone claiming that the family's service man or woman was on his/her way home on leave from Iraq, but was stalled because their wallet and military identification card was lost or stolen. The targeted family is then asked to supply personal information and send money. Remind family members not to fall for this!

For more info on Scams targeting Military families see links on blog.