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SCAMS BULLETIN Host Jay White is an inactive attorney in San Mateo County, California.

September 9, 2022

VETERANS PENSION POACHING

Attribution AARP

 “Pension poaching” is a financial scam targeting veterans. It is perpetrated by shady advisers who promise to help former service members grow their retirement funds, or obtain extra benefits from the Department of Veterans Affairs (VA).

The schemes often involve financial maneuvers that can backfire and actually disqualify veterans from needed benefits, or tie up their savings in investments that earn lucrative fees for the advisers.

A common form of the scam starts with a scammer sending mail solicitations, or showing up at a senior center or assisted living facility, offering to help ex-military members apply for a VA program called Aid and Attendance (A&A).

Only veterans with limited earnings and assets are eligible for A&A.

Scammers might recommend setting up a trust to transfer your retirement assets to family members. But that could get you disqualified by the VA or for Medicaid.  

Or a sham adviser might urge you to use retirement savings to buy an annuity. But these insurance products aren’t right for everyone, the Federal Trade Commission (FTC) warns.

Warning Signs

A financial adviser tells you that you’re entitled to additional benefits simply because you’re a veteran.

An adviser guarantees that they will get you an enhanced VA pension.

Do’s

*Do check the VA’s searchable database to see whether an attorney or financial professional is VA-accredited and has the required training to complete and submit claims.

*Do run a background check on any professional who promises to boost your VA benefits (see “More Resources” below).

*Do carefully read all contracts and other paperwork related to an investment or application. If you don’t understand something, get an explanation in writing.

*Do discuss any proposed pension or investment moves with a trusted friend or family member before taking action.

*Do beware of advisers who offer free food. Some rogue operators offer lunch or snacks to draw veterans to “financial seminars.”

*Do apply directly to the VA if you think you’re entitled to Aid and Attendance benefits (see “More Resources” below). There’s no cost for the forms and no fees to apply.

Don’ts

*Don’t trust an organization or individual that contacts you out of the blue and offers to assist you with a VA claim.

*Don’t hesitate to say “no” if an adviser pressures you to act fast.

*Don’t be swayed by a name. Words like “veterans” or “military families” in an organization’s name doesn’t necessarily mean it’s legitimate, the FTC says.

*Don’t settle for vague or evasive answers. If a financial professional won’t definitively answer your questions, walk away.

If you’ve been approached or victimized by a pension poacher, file a complaint to the FTC, online http://www.ftc.gov, or by calling 877-382-4357.

For information you can trust on VA pension options, visit the department’s Pension page and eBenefits portal or contact your state veterans-affairs office.

For lawyers, contact your state’s bar association, which can tell you if the person has been the subject of any ethics complaints.

For insurance agents selling annuities, contact your state insurance regulator.

Have you seen this scam?

Call the AARP Fraud Watch Network Helpline: 877-908-3360

Report it on AARP’s Scam-Tracking Map

Sign up for Watchdog Alerts for more tips on avoiding scams.