Buyer Beware: How to Avoid Scams When Applying for Government Benefits

In recent years, the number of for-profit companies preying on people with disabilities and veterans applying for state and federal government benefits has surged. These entities exploit the complexities of the benefits system, often leaving the most vulnerable members of society at a significant disadvantage. Educating yourself about how these companies work can help you avoid falling prey to predatory schemes.

Government Benefits for People with Disabilities and Veterans

Government benefits for people with disabilities and for veterans provide financial assistance, health care, and support services to those who qualify. Programs such as Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), and Veterans Affairs (VA) benefits are among the crucial programs providing a lifeline for millions.

However, the process of applying for these benefits can be complex, bureaucratic, and time-consuming. Many applicants face long waits, extensive paperwork, and frequent denials, making the system difficult to navigate without professional help. This complexity creates a fertile ground for exploitation by for-profit companies that promise to streamline the application process — for a fee.

Tactics to Avoid Scams

When you or a loved one need to apply for benefits, how can you determine which companies are legitimate and which companies are exploitative? Consider all of the following in order to best protect yourself and your loved ones.

1. Ask for recommendations from family and friends who have successfully applied for benefits. Talk to them about how the process went with the company they used, what fees were charged, and when such fees were due.
2. Be wary of any companies claiming or implying that:
   1. They have an “in” or “special relationship” with the governmental entity or workers responsible for making benefits decisions.
   2. The government prioritizes the benefits applications submitted by the company.
   3. All of their benefits claims are approved.
3. Ask questions about the application process with the company, the fees involved, and what happens if the benefits application is denied. Legitimate companies will not have a problem walking you through their basic process, disclosing what it is likely to cost you, and talking to you about how a denial is handled.
4. Do not give into pressure to sign a contract that you do not understand. Take your time to look over all documentation, and make sure the company can answer any questions you may have to your satisfaction. Legitimate companies will never push you to sign any agreement that it isn’t clear you fully understand.
5. Beware of any lack of transparency. Legitimate companies do not have anything to hide, nor do they want to mislead you. They should be willing to disclose an estimate of how many benefit applications they process in a given timeframe, how many of those applications are approved and denied, and how much it generally costs to process those applications for individuals who choose to employ their services.

If you would like to speak with an attorney regarding your situation or have questions about something you have read, please do not hesitate to contact our office at 1 (800) 680-1717. We look forward to the opportunity to work with you.