From the U.S. Government Accountability Office, www.gao.gov Transcript for: Protecting Veterans from Financial Exploitation Description: What is being done to protect veterans from scams? Related GAO Work: GAO-20-109: Veterans Benefits: Actions VA Could Take to Better Protect Veterans from Financial Exploitation Released: October 2019 [ Background Music ] [Elizabeth Curda:] There is currently over 200,000 veterans who are receiving about $3.2 billion in these aid and attendance benefits. [Matt Oldham:] Welcome to GAO's Watchdog Report, your source for news and information from the US Government Accountability Office. I'm Matt Oldham. Among the VA benefits veterans with disabilities and their survivors can receive is increased pension benefits for everyday activities like bathing or dressing. This is called aid and attendance. And unfortunately these benefits can become targets for exploitation. Joining me is Elizabeth Curda, an Education Workforce and Income Security Director, and she's going to talk about a GAO report on how the federal government protects these benefits for elderly or disabled veterans. Thanks for joining me, Elizabeth. [Elizabeth Curda:] It's great to be here. [Matt Oldham:] So, do we have a sense of how big this issue is? [Elizabeth Curda:] There is currently over 200,000 veterans who are receiving about $3.2 billion in these aid and attendance benefits. Most veterans receiving this benefit are over 80 years old and may be particularly vulnerable to these kinds of scams. It can be hard to measure this exploitation, however, because those who are subjected to scams may not know they are being exploited, and even if they do know they've been scammed, it may not occur to them to report it, or they may be embarrassed. [Matt Oldham:] We've been talking about the scope of this exploitation, but what sort of scams are we talking about, here? [Elizabeth Curda:] We are aware of a number of types of threats that are out there, for example, veterans may be getting bad investment advice in connection with these benefits and as a result can lose access to their money. They can get charged for applying for the benefits when it's supposed to be free, and we've also seen some veterans being targeted for high-interest loans against their future pension benefits. [Matt Oldham:] What's the VA doing about these scams? [Elizabeth Curda:] VA is doing a number of helpful things that can help prevent or combat these scams. For example, they have placed a warning on their pension website about the types of scams that are out there and how to protect yourself. They exchange information with other federal agencies that are also combatting fraud through the Elder Justice Coordinating Council, and staff who process claims -- that we talked to -- knew that they were supposed to report suspicious claims to a supervisor or the Inspector General. However, VA doesn't centrally collect or analyze any of this information about ongoing or emerging threats to veterans. For example, VA does not collect data on how often veterans are targeted for these schemes, the types of schemes, or the individuals or companies that are involved. [ Background Music ] [Matt Oldham:] So, it sounds like the VA is working to address the financial exploitation of our veterans, but they've had challenges determining how big the issue is. Elizabeth, why is it important for the VA to have better data? [Elizabeth Curda:] Well, by collecting better data about scams across VA's offices, it can start to get a better handle on the nature of the threats veterans face. For example, VA might learn that a particular bad actor is pushing schemes to veterans in multiple regions across the country, And when you know that, you can start to devise more proactive strategies to combat these scams. VA could develop educational materials and target their outreach to veterans where it is most needed. [Matt Oldham:] Is there anything else the VA can do? [Elizabeth Curda:] We also recommended that VA take steps in the near term to address threats, like placing warnings on its physical applications and other documents that veterans might see when they're applying for benefits. [Matt Oldham:] So, what about anyone who suspects that they, or someone they know, has fallen victim to some of the schemes we've been talking about? What can they do? [Elizabeth Curda:] Well, the VA suggests that veterans who think they have been scammed contact their state attorney general or the Federal Trade Commission. Another avenue is to contact VA's Office of Inspector General. They have a fraud hotline number, which is 1-800-488-8244. The fraud hotline can also be accessed through the VA Inspector General's website. [Matt Oldham:] Last question. What's the bottom line of this report? [Elizabeth Curda:] Well, one of the VA's core values is to ensure veterans and their survivors are cared for. While VA strives to meet this goal, it could be doing more to better understand the schemes targeting veterans, and to take steps to prevent exploitation. [Matt Oldham:] Elizabeth Curda was talking about a GAO report on how the VA could better protect veterans from financial exploitation. Thank you for your time, Elizabeth. [Elizabeth Curda:] Thank you. [Matt Oldham:] And thank you for listening to the Watchdog Report. To hear more podcasts, subscribe to us on Apple Podcasts. For more from the congressional watchdog, the US Government Accountability Office, visit us at gao.gov.