How to Spot Financial Scams That Target Veterans (And What to Do If You’ve Been Caught Out)

You’ve served with courage — but scammers don’t care. That’s why veterans need to stay alert to financial tricks and traps.

Fraudsters know that many ex-service personnel receive lump sums, pension transfers, or compensation payouts — and they exploit this. Whether through slick websites, cold calls, or fake charity names, they use manipulation and urgency to gain your trust.

At Justice4Heroes, we’ve supported veterans who lost thousands after falling victim to scams. Some didn’t even realise they’d been conned until years later. This guide will help you spot the warning signs and know what to do if something doesn’t feel right.

Why Are Veterans Targeted?

Leaving the military often brings huge life changes — financially, emotionally, and socially. During this transition, you may be more open to advice or support, and scammers are trained to sense that.

Veterans are frequently targeted because:

· You may have access to a lump sum or retirement benefit

· You’re more likely to be trusting, having worked in tight-knit units

· You might be isolated from civilian financial systems or unfamiliar with “what’s normal”

· You’re looking for ways to secure your family’s future, especially after medical discharge

Scammers don’t discriminate — but they are strategic. And sadly, veterans are often at the top of their list.

Common Scams That Target Veterans

These scams are often wrapped in convincing language, military-friendly branding, or promises of helping “ex-forces like you.” But beneath the surface, they’re designed to take your money — not protect it.

Here are some of the most common types of financial scams we’ve seen targeting veterans:

❌ Fake Pension or Investment Schemes These claim to offer better returns or more control than your military pension. In reality, they’re often high-risk, unregulated, or completely fake.

❌ Recovery Room Scams If you’ve already lost money, you might be contacted by someone claiming they can help recover it — for a fee. Often, it’s part of the same scam.

❌ Mini-Bonds and Offshore Investments These are sold as “secure” alternatives but are rarely suitable for average investors — and often fall outside UK protection schemes.

❌ Fake Charities and Veteran Trusts Some scammers pose as veteran charities or service organisations to earn trust. They may ask for donations, personal details, or investment.

Red Flags to Watch Out For

Even if someone sounds professional and “helpful,” the tactics scammers use often follow a pattern. Learning to spot these red flags could save you from emotional stress and financial loss.

Watch out for:

· Urgency – "Act now or miss out!"

· Unrealistic promises – “Guaranteed 10% returns every year.”

· No paperwork or long-winded jargon – Confusion is a red flag.

· Lack of authorisation – Always check if the adviser is FCA-registered.

· Unusual payment methods or upfront fees – This is often a sign of fraud.

· Being rushed – If you’re not allowed to take time or get a second opinion, walk away.

You should always feel in control of your financial decisions — not pushed or pressured.

What to Do If You’ve Been Targeted (Or Already Lost Money)

If you've already been caught out by a scam, it's important to know: you’re not to blame. These fraudsters are trained manipulators. What matters now is taking the right steps to protect yourself and start the recovery process.

Here’s what to do:

1. Report the scam to Action Fraud — the UK’s national reporting centre.

2. Inform your bank as soon as possible to try and freeze or recover funds.

3. Contact Justice4Heroes — we’ll assess whether your case could qualify as financial mis-selling, and if so, we can support a compensation claim through the Financial Ombudsman Service or the FSCS.

Even if the company has shut down, our legal partners may still be able to help recover your losses.

You’re Not Alone – Support Is Available

If something doesn’t feel right — or already went wrong — don’t carry the weight of it on your own.

📞 Call us on: 0800 776 5622 📩 Email: [email protected] 🌍 Visit: justice4heroes.org

Justice4Heroes is here to help UK veterans identify fraud, recover from mis-selling, and protect their financial future. We’ve got your back — just like you had ours.