OPINION: Federal staffing cuts leads to scams

There is much confusion these days about federal staffing cuts and the effect on government services, so be especially aware of imposter scams that are out to steal your money.

A particular one involves the Veterans Affairs department, with bogus “advisers” pretending they can help you get or boost current benefits — while charging a fee for services that the agency provides for free.

For example, they might phone or send an email saying you’re missing out on some available benefits and offer to help claim them.

“They often use aggressive communication techniques to contact veterans with promises of expedited claims processing times and higher disability ratings in exchange for high fees,” the VA says.

Imposter scams like this one caused the second-highest amount of reported losses nationwide in 2024, costing victims $2.95 billion, according to the Federal Trade Commission.

Be aware that only the VA can determine eligibility and award benefits and services. You can’t speed up the process, and there are no guarantees, despite what someone tells you, the Federal Trade Commission says.

It’s best to apply directly to the VA, which offers to help gather and develop evidence needed for an initial claim. It’s free.

For assistance, work only with a VA accredited attorney or agent or a representative from the Veterans Service Organization. The VA search tool is here: www.va.gov/get-help-from-accredited-representative/find-rep/.

Fraud victims increase in 2024

The number of people who lost money to fraud last year spiked, resulting in overall losses of $12.5 billion, according to the latest Consumer Sentinel Network, published annually by the FTC.

That’s a 25% increase over the year before. And it’s not because more people are reporting fraud. That number remained stable.

Rather it’s because the percentage of people who reported losing money to fraud increased by double digits: from 27% of those reporting in 2023 to 38% last year. The most common means of payment was through bank transfers and cryptocurrency, the report says.

The New Mexico-specific part of the report says imposter scams were the most common in the state, with total fraud losses of $56.6 million.

Watch out for IRS scams

Here’s yet another IRS-related scam to watch out for.

This one starts with a bogus IRS “officer” calling to say the person’s tax form has some irregularities and help is needed to sort things out. The person is given a number and asked to call back.

If neither happens, the fraudster says, arrest, lawsuits or even a driver’s license suspension will follow. Sometimes, the caller has spoofed an actual IRS number, so the call looks legitimate.

But the IRS never calls and demands immediate payment. The agency will send out a notice for those who owe money, but never proceeds until the taxpayer has an opportunity to appeal or question the amount.