With fraud tactics becoming increasingly sophisticated in 2026, financial services professionals can play a critical role in consumer advocacy. Learn why service members are targeted and how FTC-backed education can reduce vulnerability by up to 86%.
03/17/2026 10:00 A.M.
In a recent webinar hosted by the Federal Trade Commission, experts addressed a problematic trend: the military community is being targeted by fraudsters with increasing precision and devastating financial results.
For financial services professionals, understanding these vulnerabilities is no longer just a matter of compliance; it is a critical component of effective consumer advocacy.
The webinar, “Financial Health, Mental Wealth: Protecting Your Money and Avoiding Scams,” featured speakers from the GoVA Foundation, a nonprofit providing free, comprehensive financial education to servicemembers, veterans and military families, the FTC and Financial Health for Veterans (FinVet) as part of National Consumer Protection Week in March.
Why the Military? The Vulnerability Gap
In 2024, the military community reported $584 million in fraud losses, a sharp increase from 2023. With total fraud losses for the general public reaching a staggering $12.5 billion in 2024, the webinar panel discussed how the trajectory for 2025 and 2026 suggests these predatory tactics are only becoming more sophisticated.
The FTC highlighted four primary factors that make service members a “perfect target” for scammers:
- Frequent Transitions: Permanent Change of Station (PCS) moves and deployments create high-stress environments where quick financial decisions are often required.
- The Data Trail: Military life necessitates sharing sensitive data (Social Security numbers and addresses) across numerous state and federal institutions, leaving a massive digital footprint for identity thieves.
- Financial Inexperience: Many young service members are managing a steady paycheck and independent finances for the first time, often far from home and traditional support networks.
- Predatory Proximity: Historically, lenders and pawn shops located near military bases have conditioned the community to high-pressure financial environments.
Anatomy of the Modern Scam
While imposter scams remain the most common, investment scams are the most damaging, with a median loss of $10,000 per person. Financial professionals should be alert to the delivery and payment methods favored by fraudsters.
The top contact method for these scams is text messages, due to their high open rates and ease of automation, according to the FTC. Phone calls, however, lead to significant individual losses because they enable high-pressure “social engineering.”
The Professional’s Role: Strategies for Debt Resolution
For professionals working with service members to resolve debt that may also result from a financial scam, the webinar offered a clear directive: break the cycle of shame. Financial stress is a known risk factor for mental health issues within the service member and veteran community. When a consumer is scammed, they often feel a sense of failure, which can lead to silence and isolation. To better serve these consumers, consider the following takeaways:
Implement the “Pause and Think” Method
FinVet offered a three-step defense for service members and all consumers to use when they receive a communication that may be a financial scam:
- Pause: Stop impulsive responses to “urgent” debt payment threats.
- Verify: If they didn’t initiate the call, they should hang up and call the official number on their statement.
- Assess: Check for pressure tactics or requests for unusual payment methods (e.g., “Pay us via Zelle to stop the garnishment”).
Reporting as Recovery
Reporting fraud at reportfraud.ftc.gov does more than just help law enforcement — it helps the victim. The FTC noted that acting helps consumers regain a sense of control, which is vital for mental health and long-term financial stability.
The Education Deterrent
Research shows that simply being aware of scam tactics reduces a consumer’s vulnerability by 62% to 86%. As a financial service provider, sharing official FTC or FinVet resources with consumers is one of the most effective prevention measures.
ACA’s Take
For ACA International members, the FTC’s findings serve as a reminder that financial services professionals’ role extends beyond settling accounts.
The rising sophistication of scams in 2025 and 2026 requires a proactive approach from the financial services industry. As the FTC and FinVet demonstrated, education is the most potent deterrent, capable of reducing vulnerability by up to 86%.
By fostering transparency and removing the “stigma of the scam,” professionals can empower military consumers to take control of their financial futures. Protecting the military community isn’t just a regulatory necessity — it is an investment in the stability of our entire financial ecosystem.
ACA offers members access to several SearchPoint documents related to working with servicemembers, such as FCRA Fraud Alerts and Active-Duty Alerts (PDF) (#1513) and Understanding the Military Lending Act (PDF) (#8047).
Did You Know?
ACA’s Know My Debt website provides reliable consumer education on critical topics like:
- Laws and regulations protecting consumers.
- How to work with debt collectors.
- Answers to common questions about credit reporting and credit scores.
- Information about identity theft, call frequency, and other consumer concerns.
By incorporating Know My Debt into your consumer interactions, you can help build consumer confidence in the debt collection process.
Additional information on helping consumers understand their rights and learn how to spot, report and recover for scams in the ACA Daily article: FTC Webinar Highlights Latest Scam Trends During National Consumer Protection Week.
Remember, subscribe to ACA Daily and Member Alerts under your My ACA Assistant profile when logged in to acainternational.org.