SERVING

Those That

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Scams

Real Estate Scam Aimed At Veterans
August 10, 2017

   

So far, over 15,000 veterans have been scammed out of millions of dollars on a scam that promises to make veterans wealthy.  The scammers prey off the current wave of patriotism and support many veterans receive from well-wishers, corporations, and small businesses.  The real estate scam involves scammers posting bogus rental property on a classified ad websites (e.g., Craig’s List, Backpage, etc.) offering huge veteran discounts or free property altogether. All the veteran has to do is wire transfer a security deposit or provide their debit card information to cover costs of an alleged “processing fee” to the landlord of each property.

   

   

   

   

   

   

   

   

   

   

   

How The Scam Is Constructed

  

The scammers will contact a veteran claiming to be a representative from a known veterans’ organization such as Wounded Warrior Project, DAV or VFW.  The scammers inform the veteran they have been randomly chosen to receive rental property or free property as a token of appreciation for their military service.  The scammers claim the properties in their possession have been foreclosed and purchased by their organization for pennies on the dollar.  Rather than have the property sit for months on the open market, the scammers try to convince veterans they [the phony organization] purchased the property only to give it to a well deserving veteran.  All the veteran has to do is cover the cost of the transaction by sending in a security deposit and cover the cost of the processing fee.

To get a true idea how this scam is carried out, below you can read a transcript from an actual telephone call to a veteran.  The telephone call was recorded by the veteran.

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Scammer:  May I please speak with Mr. Veteran?

 

Veteran:  This is Mr. Veteran.

 

Scammer:  Mr. Veteran, my name is Joe Scammer, I am calling you from VFW.  I have great news for you!  You like good news don’t you?

 

Veteran:  Yes.

  

Scammer:  I was hoping you’d say that.  I like good news too Mr.

Veteran.  Well, you’ve been recognized by VFW as an honorably discharged veteran.  Thank you for your service Mr. Veteran.

  

Veteran:  No problem.

  

Scammer:  In recognition of your honorable service, the VFW would like to provide you with a two year-old, 2500 square foot home in Ventura County.  The home will cost you nothing, not a dime.  That’s good news isn’t it?

  

Veteran:  Yeah!  But, are you serious?

    

   

   

  

   

   

   

   

    

      

Scammer:  As serious as an incoming ICBM [laughing].  We [VFW] purchase homes around the country so that we can give them away to veterans.  We’re a non-profit organization, so we’re allowed to get the homes dirt cheap, and in some cases free.  We clean the homes up, and give them away to deserving veterans like yourself.  Have you heard of Habitat for Humanity?

 

Veteran:  Yes.

  

Scammer:  We’re kind of the same thing.  When someone gets a free home from Habitat for Humanity, they have to pay taxes on the home, processing fees, and a small downpayment is required.  They never tell you that part.  Sometimes, the poor family won’t have enough money to cover those fees and end up not getting the home.  That would suck if that happened to you wouldn’t it?

   

Veteran:  Yes.

 

Scammer:  To prevent you from losing your new home all we need is for you to secure your home by sending us a small security deposit.  The security deposit will cover all administrative fees, and then the house is yours.  That’s great news isn’t it?

  

Veteran:  Yeah.  How much?

  

Scammer:  Only $5500.  And, I need you to send it to me as quickly as possible.  See, we’re having a contest today to see who can contact the most veterans and give them a home.  If I win, I will get a free vacation package to any destination of my choice.  I really want to win Mr. Veteran.  Can you please help me win Mr. Veteran?

  

Veteran:  I’ll do what I can.  Do I write you a check or what?

  

Scammer:  Oh no Mr. Veteran! [laughing].  You need to wire transfer the money to me today.  Let me help you with that…

   

The scammers are highly trained and very convincing.  Additionally, they’re using technology that mimics active telephone numbers from veterans’ organizations, and will show up on your telephone’s caller ID as a veteran organization.  The scammers seem legitimate – they are not.  One major red flag is their need to have you wire transfer money to them right away.

Stay alert and do not fall prey to this highly sophisticated scam.