VA Claim Scams and Claim Sharks: How to Spot Them, Check Accreditation, and Report
Quick answer: Federal law bars agents and attorneys from charging a fee until VA issues its initial decision on a claim, and VA says it is unlawful for anyone to charge for preparing an initial claim. Filing with VA is free. Check anyone's accreditation in VA's search tool, and report suspected fraud to VSAFE at 833-38V-SAFE.
Veterans are targeted by people who sell help with VA benefits they can get for free. The Federal Trade Commission estimated that veterans reported $292 million in fraud losses in 2022 alone, according to VA's fraud-protection page. This guide covers what the federal fee rules say, how to recognize the common schemes, how to verify a representative, and where to report. It is general information, not legal advice.
What is a VA claim shark?
"Claim shark" is a common nickname, not a legal term. It usually describes a company or individual that is not accredited by VA but charges veterans to help prepare or file a VA claim, often by taking a percentage of benefits or a large upfront fee. The VSAFE fraud site (a federal partnership that includes VA) calls the practice predatory claims practices: bad actors who try to unlawfully charge veterans to "help" process initial claims.
VA's own guidance says it is not legal for a company or person to prepare, present, or prosecute VA benefit claims without proper VA recognition (VA.gov guidance on protecting your benefits). Accreditation matters because accredited representatives are subject to VA's standards of conduct, and fee agreements are subject to VA review.
What do the federal fee rules actually say?
The key law is 38 U.S.C. 5904, "Recognition of agents and attorneys generally" (text on govinfo.gov). As written there:
- No fee before the initial decision (5904(c)(1)). A fee may not be charged, allowed, or paid for services of agents and attorneys provided before the date a claimant is given notice of the agency of original jurisdiction's initial decision under 38 U.S.C. 5104. That limit does not apply to court proceedings, and a separate paragraph allows a reasonable fee in certain VA home-loan (chapter 37) cases.
- Fee agreements must be filed (5904(c)(2)). An agent or attorney who represents you after that initial decision must file a copy of the fee agreement with VA.
- VA can review fees (5904(c)(3)). VA may reduce a fee it finds excessive or unreasonable, on its own motion or at the claimant's request.
- 20 percent cap on direct-pay agreements (5904(d)(1)). When the agreement has VA pay the fee out of past-due benefits, the total fee may not exceed 20 percent of the past-due benefits awarded on the claim, and the fee must be contingent on the outcome.
- 20 percent is presumed reasonable (5904(a)(5)). A fee that does not exceed 20 percent of past-due benefits awarded is presumed reasonable.
VA's implementing regulation, 38 CFR 14.636, adds that fees over 33⅓ percent of past-due benefits are presumed unreasonable, and that fee agreements that don't clearly provide for VA to pay from past-due benefits, or that specify more than 20 percent, are treated as agreements where the representative collects the fee from the claimant directly. Read the regulation, or ask an accredited representative, before signing anything. The rules differ for some older claims and for different claim types, so confirm how they apply to your situation.
About criminal penalties: 38 U.S.C. 5905 currently covers wrongfully withholding a benefit from a claimant. The U.S. Code's history notes show that a 2006 law (Pub. L. 109-461) removed earlier language that penalized charging fees outside section 5904. Bills such as the GUARD VA Benefits Act aim to address that gap (see the status section below).
Who can charge a fee, and who can't?
| Who | Can they charge for a VA claim? | Source |
|---|---|---|
| VA itself | No. There are no costs or hidden fees to apply directly with VA. | VSAFE toolkit |
| Accredited VSO representative | No. Recognized organizations and their accredited representatives acting as such are not permitted to receive fees. | 38 CFR 14.636(b) |
| Accredited attorney or claims agent | Only for services after VA's initial decision, under a filed fee agreement, with the limits above. | 38 U.S.C. 5904; 38 CFR 14.636 |
| Unaccredited company or consultant | Not authorized to prepare, present, or prosecute claims. VA says charging for an initial claim is unlawful. | VA.gov; VSAFE toolkit |
What are the warning signs of a claim shark?
VSAFE's claims-predators page and VA.gov list these indicators. Any one is a reason to stop and verify:
- They promise a result, a higher rating, or faster processing in exchange for payment. VA says only VA decides disability evaluations.
- They want a percentage of your award, or a fee, to help with an initial claim.
- They won't accept payment through VA and expect all payments to go through them.
- They pressure you to sign a contract quickly ("act now or lose your chance for benefits").
- They say they are contacting you on behalf of VA or have a special relationship with VA.
- They ask you to sign a blank form, or a non-VA form giving someone "behind-the-scenes" access. VA says to use VA Form 21-22 (VSO) or 21-22a (accredited attorney or agent) to appoint a representative.
- They advertise special relationships with medical professionals and promise an award. VA warns that if a scheme defrauds the government, you could be held responsible for paying benefits back.
- They ask for your Social Security number or medical records before you've confirmed their credentials.
For more on how paid help is supposed to work, see our guides to claims agents vs. attorneys, VA-accredited claims agents, and filing yourself vs. hiring a claims agent.
What is pension poaching?
People use the term "pension poaching" for schemes that target veterans who may qualify for VA's needs-based pension, often older veterans. We could not find an official VA definition of the phrase, but VA's VSAFE disability and pension benefits page lists the underlying warning signs:
- Offers to prepare or file your application without VA recognition, for a fee.
- An upfront lump-sum payment in exchange for your future monthly VA payments. VA says VA benefits cannot be assigned.
- Redirecting your mail or benefits to someone who is not a VA fiduciary.
- Asking you to move money into different accounts or reallocate investments to qualify for pension.
- Offers to get benefits faster for a fee.
VA also notes that some individuals and organizations target elderly wartime veterans with claims help as a way to promote their other business interests, and that these are generally not accredited or recognized by VA. Pension has income and net-worth rules; see our VA pension guide and talk to an accredited representative before moving any assets.
How do fake VA calls, texts, and PACT Act scams work?
Overpayment scams. VA reports a 2025 scam in which impersonators send texts, emails, or calls saying you owe VA money for a benefits overpayment and pressure you to pay them directly. VA's fraud prevention page says to log in to your VA.gov account to verify, resolve any real debt through VA.gov or the Debt Management Center (1-800-827-0648), never share your VA login, and treat wire transfers, bitcoin, prepaid debit cards, money transfers, or gift cards as signs of a scam.
Phishing and spoofing. VA lists phishing, spoofed caller ID, and email scams as common. VA says it will never pressure or threaten you in an email or ask for personal information such as your Social Security number by email, and it will send you to VA.gov. Use only VA.gov to file online or download forms.
PACT Act and Aid and Attendance scams. VSAFE's military-benefits page says scammers target veterans' pension and disability benefits, including PACT Act and Aid and Attendance claims. The PACT Act is real, and many veterans are eligible to file; our PACT Act filing guide and presumptive conditions list explain the actual process. You don't need to pay anyone to file.
If you're unsure whether a message is real, VA says to call VA. For scams related to VA benefits, VA lists 833-388-7233.
How do you check VA accreditation?
- Open VA's accreditation search. You can search by last name, first name, city, state, or ZIP code, or just one of them.
- Search the person's name. A separate "Recognized VSOs" search covers organizations.
- Read the result carefully. VA says that if your search returns nothing, the person or organization is not currently authorized to provide representation, although an application may be pending. VA says the data refreshes every Monday, Wednesday, and Friday evening.
- Confirm the name matches the person you are dealing with, not just the company.
- Before sharing your SSN or medical records, VA's guidance is to confirm credentials first.
You can also use VA's find a representative tool. Apply the same checks to any website that offers claim help, including ours.
Where can you get free help?
VA lists three kinds of accredited help for a disability claim: an attorney, a claims agent, or a Veterans Service Organization (VSO) representative (how to file a VA disability claim). VSAFE says accredited VSOs provide help for free, and VA says it will help you gather evidence when you file directly. You can also file online, by mail, by fax, or in person at a VA regional office.
Not sure which route fits? Compare claim.vet and VSOs, or read AI claim help vs. VSOs, agents, and attorneys. If you plan to file, our step-by-step filing guide, first-timer's guide, and intent to file explainer are free to read.
The same caution applies to evidence services. Our posts on nexus letter costs and free vs. paid nexus letters explain what you may be offered and what to ask.
Looking for an accredited attorney?
claim.vet can connect you with VA-accredited attorneys. Whoever you talk to, verify accreditation yourself in VA's search tool and read any fee agreement before you sign.
See attorney options →Where do you report a scam or claim shark?
- VSAFE Fraud Hotline: 833-38V-SAFE (833-388-7233). VA's toolkit says to call this number if you suspect a representative acted unlawfully or unethically in helping you file a VA claim. Website: vsafe.gov.
- VA Office of Inspector General hotline: accepts complaints about potential fraud, waste, and abuse relating to veterans or VA through web forms at vaoig.gov/hotline, and by phone at 1-800-488-8244. The OIG says it is not a crisis line; veterans in crisis should contact the Veterans Crisis Line.
- FTC: report scams at reportfraud.ftc.gov. For identity theft, VSAFE points to IdentityTheft.gov.
- VA accreditation office: VSAFE says to report misconduct in claims assistance or improper fees to VA's Accreditation, Discipline, and Fees Program office. VA's accreditation page lists ogcaccreditationmailbox@va.gov for questions about accreditation and fees.
- Already paid or shared information? VSAFE advises you to stop contact, save all messages, contact your bank or card issuer right away, and report identity theft if you gave out your SSN.
For problems with VA itself rather than a scam, see how to file a VA complaint.
What is the status of the GUARD VA Benefits Act?
The Governing Unaccredited Representatives Defrauding VA Benefits Act (GUARD VA Benefits Act) is H.R. 1732 in the 119th Congress. The Congress.gov bill summary says it imposes fines on individuals for soliciting, contracting for, charging, or receiving any unauthorized fee or compensation for preparing, presenting, or prosecuting a VA claim, and that attempts are also punishable by fine. See H.R. 1732 on Congress.gov.
What the official bill-status data shows (Congress.gov data via the GovInfo BILLSTATUS file, last updated September 19, 2026):
- Introduced in the House on February 27, 2025 and referred to the Committee on Veterans' Affairs and, in addition, the Committee on the Judiciary.
- Referred to the Subcommittee on Disability Assistance and Memorial Affairs on March 27, 2025.
- March 18, 2026: committee hearings held, and the subcommittee was discharged. This is the latest action recorded.
That data shows no floor passage and no enactment. Earlier versions were introduced in prior Congresses without becoming law (for example H.R. 1139 and S. 740 in the 118th Congress).
A related bill, the SAFEGUARD Veterans Act of 2026, was introduced in the Senate as S. 4646 on June 1, 2026 and in the House as H.R. 9105 on June 2, 2026. Its official short-title list includes "Stopping Abuse, Fraud, and Exploitation by Governing Unaccredited Representatives Defrauding Veterans Act of 2026," and its title is "A bill to reinstate criminal penalties for persons charging veterans unauthorized fees relating to claims for benefits under the laws administered by the Secretary of Veterans Affairs." Both were referred to committee as of the data we checked. Bill status can change; check Congress.gov for the latest.
Until something passes, the practical protection is the same: verify accreditation, and don't pay for an initial claim.
Sources
- 38 U.S.C. 5904 and 38 U.S.C. 5905 (GovInfo)
- 38 CFR 14.636 (eCFR, current through October 29, 2026)
- VSAFE: Predatory claims practices and VSAFE: Disability and pension benefits
- VA: How to protect your identity and your VA benefits from scammers
- VBA: Fraud prevention
- VA OGC accreditation search
- VA OIG hotline
- H.R. 1732, Congress.gov; S. 4646; H.R. 9105
Frequently Asked Questions
No. Under 38 U.S.C. 5904(c)(1), a fee may not be charged for agent or attorney services provided before VA gives notice of its initial decision on the claim. VA's VSAFE site says it is unlawful for anyone to charge a claimant a fee for preparing an initial claim. Filing directly with VA costs nothing.
Yes, but only after VA has issued its initial decision on the claim, and only under a written fee agreement filed with VA. Under 38 U.S.C. 5904(d), a direct-pay fee agreement can't exceed 20 percent of past-due benefits. Accredited VSO representatives are not permitted to receive fees.
Use VA's Office of the General Counsel accreditation search at https://www.va.gov/ogc/apps/accreditation/index.asp. VA says that if a search returns no results, the person or organization is not currently authorized to provide representation, though an application may be pending.
It is a name some people use for schemes aimed at veterans who may qualify for needs-based VA pension. VA's VSAFE toolkit lists warning signs such as being asked to move money between accounts or reallocate investments to qualify for pension, and offers of a lump sum in exchange for future VA payments. VA benefits cannot be assigned.
VA warns about scams in which people impersonate VA employees and say you owe money for an overpayment. VA says to verify through your VA.gov account, resolve any real debt through VA.gov or the Debt Management Center at 1-800-827-0648, and treat requests for gift cards, wire transfers, bitcoin, or prepaid debit cards as scam signs.
For suspected unlawful or unethical help with a VA claim, VA's VSAFE toolkit says to call 833-38V-SAFE. You can also use the VA Office of Inspector General hotline at https://www.vaoig.gov/hotline/online-forms, and report scams to the FTC at https://reportfraud.ftc.gov/.
The GUARD VA Benefits Act (H.R. 1732 in the 119th Congress) would impose fines for charging unauthorized fees on VA claims. Congress.gov data we checked shows it was introduced on February 27, 2025, and the latest recorded action was committee hearings held on March 18, 2026. It has not been enacted as of that data.
Accredited Veterans Service Organization (VSO) representatives help veterans with claims at no charge, and VA says you can also get help at a VA regional office. Find an accredited representative through VA at https://www.va.gov/get-help-from-accredited-representative/.