Veterans' Dividend Hoax Surfaces Again...
and Again...
Dateline: 05/06/98
Last month I received an interesting message from Paul Schnebelen, who wrote:
A couple of days ago a friend of mine who's a U.S. veteran told me about this "great deal" that a friend got a letter about. According to the letter, he and I, both being veterans, were due dividends on the group life insurance we paid for when we served.
Though his friend was anxious to apply (the letter said "you will not receive your dividend unless you ask for it"), Paul smelled a rat and did some checking around for the facts.
It didn't take long. The Veterans' News and Information Service posted a copy of a news release from the Army News Service dated October 1, 1997 (it can be found at http://www.vnis.com/top-story/scam.htm). It seems that this is a variation of an old legend that has been given new life by circulation throughout the Internet.Here's the real story: in 1950, the Department of Veterans Affairs' predecessor, the Veterans Administration, did pay dividends to the World War II veterans who held the World War II version of the current Servicemens' Group Life Insurance plan. In 1965, the 1950 announcements inadvertently reappeared and were published in a few newspapers, and the story has going around ever since – although as time progressed the scope of the of the supposed dividend was enlarged to encompass all veterans.
Alas, even the original dividend program has been done away with (by act of Congress in 1970) and the current life insurance plans only rarely pay dividends to veterans – but only to veterans who kept their policies in force after leaving the military, and those payments are made automatically.
All true, according to the Veterans' News and Information Service. In the 33 years this rumor has existed, the VA has spent millions upon millions of dollars combating it, with little result. Writing about the dividend hoax 10 years ago, Jan Harold Brunvand reported that the VA was then receiving half a million inquiries a year regarding it. That was before it had even found its way onto the Internet!
Countless versions of the dividend notice have been circulated, of course, as people have seen fit to embellish it over time, but this is a typical email rendering:
MAXIMUM DISSEMINATION REQUIRED
SEND THIS INFORMATION TO EVERY CURRENT AND FORMER MILITARY
PERSON YOU
KNOW.
VETERANS ELIGIBLE FOR GI DIVIDENDS BUT YOU MUST APPLY TO RECEIVE
IT.
Congress recently passed a bill that entitles veterans to a
dividend on GI insurance (SGLI) which military personnel held
while in the service. Any current or former military service
man or woman is entitled to this dividend regardless of whether
they still carry the insurance.
The Veterans Administration will not be reviewing each case
individually to determine eligibility. However, the general
schedule of dividends earned is: for two years of service,
$261.00; for three years of service, $391; for four years of
service, $528.
If you think you are eligible, you must apply for the dividend.
To apply for your disbursement, send your name, address, GI
number (if you know it), and branch of service to: Veterans
Center, P.O. Box 8079, Philadelphia, PA 19101. If you still
have your copy of you DD Form 214, attach a copy of that with
your letter of application.
Remember, you need to apply for this, otherwise, the Veterans
Administration WILL NOT ISSUE THE MONEY TO YOU.
* ACT NOW * ACT NOW * ACT NOW * ACT NOW * Note the prodigious (and suspect) use of capital letters, as well as a variation of the phrase always found in hoax messages of this kind: "Send this to everyone you know." Still, it's unsurprising that the information is believed by many who receive it. The wording is authoritative, even bureaucratic in tone; specific dollar figures are cited and an official-sounding address is provided. Perhaps because of its long, illustrious history prior to the Internet, it rings more authentic than most email hoaxes; but it's completely false.
At the close of his message informing me of the hoax, Paul wrote:
Indeed I will. If you suspect someone is trying to scam you, call the VA Inspector General Hotline at: 800-488-8244, or write:
For general information, you can reach your VA Regional Office by dialing 1-800-827-1000.
My friend was a bit saddened by this turn of events, but was actually
lucky in one respect; apparently, some of the people that have
circulated this hoax have also included offers to help in obtaining the
dividend for a fee. Please ask your readers to inform the Department of
Veterans' Affairs Office of the Inspector General
if someone makes such an offer to them.
Inspector General Hotline (53E)
P.O. Box 50410
Washington, D.C. 20091-0410
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