How to avoid common military financial scams
Applying for a bad credit loan online is the easiest way to be a target for financial theft and identity theft. When you apply for these loans, the scammers can use your identity on other online scams or sell it to other scammers around the world.
The unsuitable insurance
This is the most common financial military scam by financial agents. Insurance agents visit military personnel in barracks or meetings and try to sell them their insurance policies and other investment opportunities. Some agents have changed their tactics to try and sell bad insurance policies to unsuspecting military agents.
The government has come up with new policies that ban insurance agents from visiting such military bases. You can beat insurance fraud by maximising your military policy first. The military insurance has coverage for your wife/ husband and kids so you don’t have to worry about additional policies.
The high fees investments
Some financial planning companies will omit important information and create misleading statements when it comes to help you in selling some mutual funds. In the financial word, this is a big scam. They also impose an upfront fee of more than 50% to the new investors who are not aware. Sales people and investors are known to pressure military persona to make investments that require upfront charges and other hidden costs. You will find yourself using up your bonus or retirement benefits with such scammers
Before investing your bonuses or retirement funds, you can maximise your options in thrift savings. It is a low cost investment with no charges and has zero taxes imposed. Also, you can take advantage of the beneficial military savings and deposit programme.
The affinity frauds and scams
There are many criminals who will use the military for financial gains. You find fraudsters posing as insurance policy lenders selling fake insurance policies to first time military families whose members are almost being deployed. Many scammers have disappeared with thousands in dollars. You find that many military families have paid fees online for a work at home opportunity but they do not get any hobs in return.
You can avoid this by checking out the online companies with a community service officer before applying for any jobs. They will help you review any contracts and insurance policies to ensure you do not fall into any scams
The predatory lending services
Some payday lenders will charge military personnel more than the required percentage in interest rate charges. Lenders will charge you up to 400% in interest. The basic interest rate percentage should be 36% interest for military personnel. Some payday lenders also ask unaware military personnel to pay an upfront fee in order to get the services and lower interest rates. They run fake payday loan websites and companies that are not legally registered.
You can opt for a zero percent interest loan from your military emergency funding organisation in place of the payday loans. You may not borrow as much money as that of the payday lenders, but it will help you keep your finances in check.