VA overpayment scam alert for veterans

As the nation honors veterans for their service, the Department of Veterans Affairs is reminding the community to stay alert to a growing threat, the VA overpayment scam. Reports show that fraudsters are contacting veterans through text, email, and phone calls, pretending to be VA employees. They claim you were overpaid on your benefits and must send money or banking details to correct the issue.

These criminals often make their messages look official with VA logos, formal wording, and even fake caller IDs. Once they gain your trust, they push for quick payment, hoping you act before verifying. Staying informed and cautious is the best way to protect your benefits and your identity.

How to spot a VA overpayment scam

Be on alert for these red flags:

• Messages demanding urgent payment, especially by gift card, wire transfer, or cryptocurrency.
• Requests for your VA login or password.
• Emails or texts with links that don’t lead to VA.gov.
• Caller ID spoofing showing “VA” or “Debt Center” to look official.
• Messages or letters that lack detailed explanations or account numbers.

If you spot any of these, don’t engage; instead, verify the communication directly through VA.gov or by calling the VA’s official number.

How real VA overpayments work

When the VA determines an actual overpayment, it sends a formal letter explaining the amount and your options to appeal or set up a payment plan. You’ll never be told to pay through text or third-party apps, and you’ll never be asked to share login credentials or banking info outside VA.gov.

Real VA notices always direct you to official channels like VA.gov or the Debt Management Center (1-800-827-0648). If something feels off, it probably is, so always verify before taking action.

Top ways to protect yourself from VA overpayment scams

Stay ahead of scammers by following these simple but powerful steps to protect your VA benefits.

1) Verify through your official VA.gov account

Whenever you receive a notice about an overpayment, log in to your VA.gov account directly instead of clicking any link or responding to a message. The site shows your current balance, payment status, and any real debts.

2) Use official VA payment channels

If you discover a legitimate debt, handle it only through VA’s official payment options. Call the Debt Management Center at 1-800-827-0648 or make payments through your secure VA.gov dashboard. Avoid sending funds through apps, wire transfers, or prepaid cards, as the VA will never ask for those.

3) Never share your login information

Your VA login and password are like your house keys. The VA will never ask for them, not by phone, email, or text. Anyone who requests them is a scammer. If you think your credentials were compromised, change your password immediately and enable multi-factor authentication (MFA)  if available.

Consider using a password manager, which securely stores and generates complex passwords, reducing the risk of password reuse. 

Next, see if your email has been exposed in past breaches. Our #1 pick, NordPass, includes a built-in breach scanner that checks whether your email address or passwords have appeared in known leaks. If you discover a match, immediately change any reused passwords and secure those accounts with new, unique credentials.

4) Avoid suspicious links and attachments

Fraudsters often embed fake links in messages that look real at first glance. Hover over a link before clicking to preview the URL; if it doesn’t start with “https://www.va.gov,” it’s fake. Be equally cautious with attachments, as they can install malware designed to steal your personal data.

The best way to safeguard yourself from malicious links that install malware, potentially accessing your private information, is to have strong antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe.

5) Use a data removal service

Data brokers often publish your name, phone number, and even veteran status online, information scammers use to target you. Services like Incogni can automatically request data removals from hundreds of broker sites, reducing your exposure and lowering the odds of being targeted.

While no service can guarantee the complete removal of your data from the internet, a data removal service is really a smart choice.  They aren’t cheap, and neither is your privacy.  These services do all the work for you by actively monitoring and systematically erasing your personal information from hundreds of websites.  It’s what gives me peace of mind and has proven to be the most effective way to erase your personal data from the internet.  By limiting the information available, you reduce the risk of scammers cross-referencing data from breaches with information they might find on the dark web, making it harder for them to target you.

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6) Watch out for unusual payment methods

Scammers love untraceable transactions. Any request for payment through gift cards, Bitcoin, prepaid debit cards, or wire transfers is an instant red flag. The VA does not and will not use these methods to collect payments.

7) Limit your social media exposure

Scammers sometimes gather information from social networks to make messages seem more personal. Review your friends and followers, tighten privacy settings, and think twice before posting details about your military service or VA benefits.

8) Report suspected fraud immediately

If you think someone tried to scam you, contact the VA directly at 1-800-827-1000. You can also report incidents at VSAFE.gov or call (833) 38V-SAFE (833-388-7233). Reporting quickly helps protect others in the veteran community.

Related Links: 

• New 401(k) tax rules could expose you to scams
• Ghost tapping scam targets tap-to-pay users
• Beware of these fake credit card account restriction scams

Kurt’s key takeaways

This Veterans Day is a time to reflect on service, sacrifice, and strength, and that includes protecting what you have earned. Scammers may be persistent, but staying alert and using official VA resources gives you the upper hand. Your benefits represent more than money; they are recognition of your service. Keep them safe, stay skeptical of sudden messages, and verify everything before you act.

How can technology companies and the government do a better job of protecting veterans online? Let us know in the comments below. 

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