Wartime veterans with limited means age 65 or older and veterans with certain disabilities are eligible for VA’s pension benefit. Those who need help with daily activities, such as bathing, may receive higher payments. These veterans, with an average age over 80, are among the most vulnerable to financial exploitation.
Scams that target them include selling bad investment advice and charges for services that should be free. VA does not centrally collect and analyze information, such as complaints made against companies, that could help counter these scams and help law enforcement.
We made 4 recommendations, including that VA collect this information.
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Why This Matters
Veterans with disabilities who receive benefits from the Department of Veterans Affairs (VA) can be tempting targets for exploitation and scams. Veterans and their survivors who need help performing everyday activities, like bathing and dressing, can receive increased pension benefits known as aid and attendance.
VA paid $3.2 billion in total pension benefits to 232,000 recipients of aid and attendance in fiscal year 2018. Most recipients were over 80.
Scams that target them include:
- being overcharged for home care, or charged for services they did not receive, and
- getting bad investment advice from financial services organizations.
VA does not centrally collect and analyze information, such as complaints made against companies, that could show the prevalence of these scams, help VA target outreach to veterans, and help law enforcement go after scammers.
Other threats to veterans include:
- VA’s applications do not warn them about exploitation or scams: For example, forms do not warn veterans that they cannot be charged fees for filing claims.
- Misdirected benefit payments: VA does not always verify direct deposit information on applications, which could lead to payments being stolen. In contrast, the Social Security Administration verifies this information by reviewing individuals’ checks or account statements.
Age of Veterans and Survivors Receiving Aid and Attendance as of October 2018
We made four recommendations to VA, including that it collect better information on potential financial exploitation, post warnings on applications, and examine if it should take more steps to verify veterans' direct deposit information. VA agreed in principle with the need to collect better information, but its proposed actions do not fully address our concerns. VA agreed with the other three recommendations.
How GAO Did This Study
We reviewed VA guidance and practices for addressing threats; interviewed VA officials, veterans groups, and other organizations and federal agencies that address financial exploitation about protecting elderly or disabled veterans; and interviewed VA staff who process aid and attendance claims.
Recommendations for Executive Action
|Department of Veterans Affairs||1. The Under Secretary for Benefits should systematically solicit and collect information on potential financial exploitation from VA's Pension Management Centers and other relevant VA components, including VA's Office of General Counsel, and assess this information to inform plans to address the potential exploitation of veterans receiving pension benefits. Such plans could also address the broader population of veterans with disabilities. (Recommendation 1)|
|Department of Veterans Affairs||2. The Under Secretary for Benefits should place additional warnings on paper and electronic documents, including on benefit applications, regarding fees which veterans cannot be charged. (Recommendation 2)|
|Department of Veterans Affairs||3. The Under Secretary for Benefits should clarify guidance to claims processors regarding the definition and examples of questionable medical expenses in pension claims. (Recommendation 3)|
|Department of Veterans Affairs||4. The Under Secretary for Benefits should explore the costs and benefits of additional steps claims processors could take to verify that the direct deposit information provided by claimants on their applications is for the appropriate party. (Recommendation 4)|