VSAFE Act of 2025 Creates VA 'Fraud Czar,' Tweaks Home Loan Fee Deadline

The "Veterans Scam And Fraud Evasion Act of 2025," or VSAFE Act, aims to shield veterans from the growing threat of scams. It does this mainly by creating a new watchdog position within the Department of Veterans Affairs (VA), and also makes a small change to VA home loan fees.

New Sheriff in Town: The Fraud Czar

The core of the VSAFE Act is establishing a "Veterans Scam and Fraud Evasion Officer." Think of this person as the VA's dedicated fraud czar. According to Section 2 of the bill, this officer's job is to:

• Sound the Alarm: Develop and manage plans to prevent, report, and respond to scams targeting veterans.
• Spread the Word: Get the word out to veterans, their families, and VA employees about the latest scams and how to avoid them.
• Set the Rules: Create clear guidelines for identifying and reporting fraud.
• Be the Point Person: Promote the VA's existing identity theft helpline and other resources.
• Track the Trends: Monitor fraud data to improve reporting and spot emerging scams.
• Train the Troops: Develop training programs for VA employees who deal with fraud.
• Team Up: Work with other federal agencies and the VA's Inspector General to boost fraud prevention.
• Listen to the Ground: Consults with veterans service organizations and state, local, and tribal governments to better understand fraud risks.

For example, if a new phishing scam targeting veterans' benefits emerges, this officer would be responsible for alerting veterans and coordinating with other agencies to shut it down. Or, if a caregiver notices unusual activity in a veteran's bank account, they could report it to the VA, and this officer would ensure the report is properly investigated.

Loan Fee Tweak

Section 3 of the bill makes a seemingly minor, but potentially significant, change to VA home loan fees. It pushes back a date in the U.S. Code (section 3729(b)(2)) related to these fees from June 9, 2034, to June 23, 2034. It's a two-week difference, but exactly who it will effect and why is not stated in the bill text.

The Bottom Line

The VSAFE Act is a mixed bag. On the one hand, creating a dedicated position to combat fraud against veterans is a positive step. It could make a real difference in protecting vulnerable veterans from financial exploitation. On the other hand, the bill creates more bureaucracy. The loan fee change is so small, it makes you wonder what the actual objective is.

The bill also states that this new "Fraud Czar" role won't mean more VA employees overall (Section 2). The bill also specifically states that nothing in this act limits the authority of the Office of Inspector General. (Section 2)