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India’s armed forces, celebrated for their bravery and commitment, are facing a troubling trend: an increasing number of serving and retired personnel are falling victim to financial fraud. Despite their disciplined and vigilant nature, veterans are finding themselves targeted by various types of scams. Understanding why this is happening and how to protect oneself is crucial.
Understanding the Vulnerability
Veterans’ vulnerability to financial fraud can be attributed to psychological factors and a lack of financial literacy. In my 23 years of service, I learned to trust and follow orders without question—a trait valued in the military but potentially problematic in civilian life. This unwavering trust can make veterans susceptible to deceptive schemes.
Additionally, many service members have limited exposure to financial education during their service. Upon retirement, this lack of knowledge about financial markets and investment opportunities leaves them exposed to fraud.
Common Types of Financial Fraud Targeting Veterans
1. Cyber Crimes
Cyber fraud is a prevalent issue affecting veterans. Scams like phishing, identity theft, and online fraud are common. For instance, in early May, an army veteran in Pune lost Rs 3.1 crore to scammers posing as police officers. The fraudsters manipulated the veteran into transferring funds through a video calling app under threats of a fake CBI investigation and national security issues.
2. Investment Frauds
Investment scams are another significant concern. Veterans are often lured into schemes promising extraordinary returns, only to lose their savings. The booming equity market in India has exacerbated these scams, as fraudulent schemes promise high returns without acknowledging the associated risks. For example, a scam involving a businessman and six accomplices defrauded 262 investors, many of whom were ex-servicemen, of Rs 26.41 crores between 2020 and 2024.
3. Loan and Charity Scams
Veterans’ trust and goodwill make them targets for loan and charity scams. Fraudsters often use social media and messaging apps to solicit donations for fake causes, such as supporting war widows. The reality is that the armed forces do not encourage such contributions, and genuine charitable efforts are typically managed through official channels.
How to Avoid Financial Fraud
1. Be Cautious of Unsolicited Offers
Always approach unsolicited calls, emails, or messages with skepticism. Scammers often use these methods to initiate contact.
2. Use Masked Aadhaar Cards
To protect your identity, consider using a masked Aadhaar card when sharing personal information.
3. Secure Document Handling
When providing copies of personal documents, clearly state their validity and intended use to prevent misuse.
4. Skepticism About High Returns
Be wary of offers promising returns significantly higher than those of fixed deposits. Remember, high returns often come with high risks, and there are no guarantees of easy money.
5. Verify Charitable Requests
Check the authenticity of any welfare fund or charitable organization claiming to support defense personnel. The military does not typically endorse random fundraising efforts.
6. Verify Land Titles
When purchasing property, ensure the land title is verified and seek professional assistance if necessary.
7. Stay Informed
Keep abreast of the latest digital fraud trends and scams. Watching series like jamtarawhich highlight the workings of fraud schemes, can offer valuable insights.
8. Invest Through Regulated Entities
Invest only through regulated financial institutions. Investing with unregulated entities is risky and akin to leaping without a parachute.
Conclusion
Armed forces personnel need to be vigilant about their finances to ensure a secure retirement. By understanding the types of fraud and adopting preventive measures, veterans can protect themselves from financial exploitation and ensure their hard-earned savings are safeguarded.