The U.S. Department of Veterans Affairs (VA) announced today at least 25,000 more Veterans are now receiving monetary benefits through federally-insured banks and credit unions — mitigating their risk of fraud occurrence.
Before the inception of the Veterans Benefits Banking Program (VBBP), established in December 2019, Veterans who did not have bank accounts were only able to receive monetary benefits through prepaid debit cards or paper checks.
The VBBP offers Veterans and service members safe, reliable, and inexpensive ways to receive and manage their VA monetary benefits through banking institutions that specialize in services for military personnel, Veterans, and their families through federally-insured financial products, services, and education.
“VBBP offers another way to simplify banking choices to help eligible Veterans select the right bank for themselves and their families. The VA and AMBA are proud to provide this opportunity to connect veterans with banks that understand their needs.” – Robert Wilkie, Secretary of Veterans Affairs.
VA partnered with the Association of Military Banks of America and worked with the Defense Credit Union Council to leverage their consortium of military-friendly financial institutions that cater to service members to enhance the financial services available to VA beneficiaries.
VA will continue to reach out to Veterans without bank accounts or those with limited access to banking services to let them know — they now have options.
“At any given time, there are approximately 250,000 Veterans who do not have bank accounts, and as a result of the Veterans Benefits Administration working diligently to contact Veterans directly by mail and telephone calls to explain the benefits of switching to direct deposit, we are reducing this number,” said VA Secretary Robert Wilkie. “This is important because Veterans who don’t have an account with direct deposit are at risk for theft, fraud, or high fees when accessing their benefits.”