MILWAUKEE -- The Better Business Bureau is warning about the Memorial Day scam.
According to the BBB, these scammers use a patriotic or military approach when contacting service members for money.
The BBB warns of the following scams:
High-priced military loans : Advertisements for loans that guarantee instant approval or no credit check will often come with hidden fees and extremely high interest rates. Remember that legitimate lenders will never guarantee a loan before you apply, and loans that require an upfront fee are likely a scam.
Veterans' benefits buyout plans : These plans offer cash payment in exchange for a disabled veteran's future benefits or pension payments. The cash amount is only about 30-40% of what the veteran is entitled to. Buyout plans are structured in different ways, so research thoroughly before signing.
Expensive life insurance policies : Members of the military are often the targets of high-pressured sales pitches that offer unnecessary, expensive life insurance policies. Solicitors may make false statements regarding the benefits that these policies offer.
Tips to avoid these scams :
For More Information
You can also find some excellent tips at BBB.org/AvoidScams. BBB Military Line provides free resources, such as financial literacy information, and complaint and dispute resolution for all branches of the U.S. military.
If you've been the victim of a military scam, use your experience to help others avoid falling prey by reporting it at the BBB.org/ScamTracker.
For an online version click here.