In 2023, U.S. Veterans Reported $350 Million in Losses to Fraud

WASHINGTON, D.C. — U.S. Representative Abigail Spanberger joined a bipartisan group of her colleagues in urging the U.S. Department of Veterans Affairs (VA) to crack down on scammers who are exploiting Veterans applying for Honoring our PACT Act benefits.

The Honoring our PACT Act — which Spanberger voted to pass and President Biden signed into law in August 2022 — expands VA healthcare and benefits for millions of Veterans exposed to burn pits and other toxic substances, as well as Veterans of the Vietnam, Gulf War, and post-9/11 eras. However, this legislation has attracted scammers looking to take advantage of Veterans or survivors. These unaccredited predators promise high disability ratings or unrealistic claim processing times in exchange for charging exorbitant fees. The Federal Trade Commission (FTC) estimated that in 2023 alone, Veterans reported $350 million in losses to fraud.

In a letter to U.S. Secretary of Veterans Affairs Denis McDonough, Spanberger and her colleagues underscored the proliferation of scams targeting Veterans who have applied for benefits through the Honoring our PACT Act. The lawmakers also requested updates from the VA regarding steps the Department is taking to protect Veterans from fraud — specifically by warning Veterans about unaccredited individuals or companies that have a history of engaging in predatory practices and encouraging the use of accredited Veterans Service Organizations (VSOs) to file a claim.

“We applaud the Department of Veterans Affairs (VA) in delivering more than $5.7 billion in earned PACT Act related benefits to Veterans and their survivors. However, the passage of the landmark PACT Act has also led to the proliferation of scammers looking to take advantage of veterans or their survivors,” wrote Spanberger and her colleagues. “We are outraged by these despicable acts and ask that you move expeditiously to impede these predators from taking advantage of the men and women who have sacrificed so much for our great nation. Veterans and their families deserve the utmost respect, and we are committed to supporting them after their service and in our communities.”

The lawmakers continued, “While we understand that the VA is attempting to raise awareness about these exploitative practices, more must be done to protect Veterans from scammers. Veterans are twice as likely to unknowingly participate in a scam as the general population, and veterans often depend on the benefits they have earned for their daily expenses.”

To date, more than 888,000 Veterans and survivors across all 50 states and U.S. territories are now receiving new service-connected disability benefits totaling more than $5.7 billion. In Virginia, more than 43,000 Veterans have already received benefits from the Honoring our PACT Act.

Click here to read the letter, and the full letter text is below.

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Dear Secretary McDonough,

The Sergeant First Class Heath Robinson Honoring Our Promise to Address Comprehensive Toxics (PACT) Act of 2022 represents the largest expansion of Veterans’ benefits and services in decades. To date, more than 888,000 Veterans and survivors across all 50 states and U.S. territories are now receiving new service-connected disability benefits. We applaud the Department of Veterans Affairs (VA) in delivering more than $5.7 billion in earned PACT Act related benefits to Veterans and their survivors. However, the passage of the landmark PACT Act has also led to the proliferation of scammers looking to take advantage of veterans or their survivors. As such, we request an update on what actions the VA is taking to protect beneficiaries from these unscrupulous actors.

We are particularly concerned about “Claim Predators,” which defraud disability entitlements from claimants by promising high disability ratings or unrealistic claim processing times in exchange for charging exorbitant fees. Such predatory practices include: charging high “consultant” fees; stealing a portion of a claimants VA benefits; or requiring binding contracts involving a percentage of a Veterans’ benefit payment in exchange for assistance with a VA claim.

The most prevalent PACT Act related scams come via email and online ads claiming to help with the “Camp Lejeune Settlement.” The Camp Lejeune Justice Act, part of the PACT Act, allows veterans and their survivors to pursue compensation if they developed serious illnesses from water contamination at Camp Lejeune. We are outraged by these despicable acts and ask that you move expeditiously to impede these predators from taking advantage of the men and women who have sacrificed so much for our great nation. Veterans and their families deserve the utmost respect and we are committed to supporting them after their service and in our communities.

While we understand that the VA is attempting to raise awareness about these exploitative practices, more must be done to protect Veterans from scammers. Veterans are twice as likely to unknowingly participate in a scam as the general population, and veterans often depend on the benefits they have earned for their daily expenses. While Congress works to enact the Governing Unaccredited Representatives Defrauding (GUARD) VA Benefits Act, which would reinstate criminal penalties for persons charging veterans unauthorized fees relating to claims for benefits, we request an update regarding the VA’s actions to protect veterans and steps the VA is taking to encourage the use of accredited Veterans Service Organizations (VSOs) to file a claim.

We respectfully ask the VA to respond to the following questions: 

1. What efforts is the VA undertaking to identify and warn veterans about unaccredited individuals or companies that have a history of engaging in predatory practices against Veterans and their families?
2. Is the VA working to improve its website and user experience by increasing the visibility of where veterans can find accredited VSOs, such as through a website header or other user improvements?
3. Has the VA worked to ensure its directory of accredited VSOs are placed higher in search engines results? If not, does the VA plan to take such action?
4. What current or future plans does the VA have for public education and awareness campaigns of common PACT Act scams, and how does the VA intend to maximize its reach to veterans and their families?
5. What actions has the VA taken to protect veterans’ data and privacy from collection and monetization?
6. What other actions, policies, or collaborations is the VA engaged in or will engage in to further protect veterans from PACT Act related scams and predatory practices?

We welcome the opportunity for the VA to host a congressional briefing for staff to provide an update on the amount of scams being perpetrated against veterans, current or forthcoming actions the VA will take to protect veterans for these illegal practices, and what actions the VA has identified as the most effective in combating unaccredited individuals or companies, if any.

Thank you for your consideration. We look forward to working together to ensure veterans and their survivors are not defrauded of the entitlements they have earned.

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