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By Suzanne Blake
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The Department of Veterans Affairs (VA) is preparing to roll out a new automated fraud‑detection system that will scan more than a million veterans’ disability claims, a move the agency says is designed to root out abuse.
However, it has sparked concern among veterans who fear legitimate claims could be swept up in the process.
Newsweek reached out to the VA for comment via email.
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Why It Matters
The VA plans to use the tool to review Disability Benefits Questionnaires, or DBQs, for signs of fabrication or other irregularities that could trigger additional medical exams and potentially delay or disrupt benefits for some veterans.
While the VA said the automated tool is aimed at stopping organized fraud, the scale of the review has raised alarms among veterans advocates. Because the system will re‑analyze DBQs going back to 2010, veterans who followed the rules and relied on private medical providers could suddenly be flagged and required to undergo new exams.
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Changes Coming to Veterans' Claims: What to Know
The new system will automatically analyze DBQs submitted by veterans and private medical providers, looking for what the VA describes as “telltale signs” of potential fraud. These could include repeated boilerplate language, unusually high volumes of similar submissions, or documentation that appears to be exaggerated or inconsistent.
James W. Smith, a deputy executive director at the Veterans Benefits Administration, told lawmakers the tool is meant to quickly flag questionable cases so they can be reviewed more closely.
“We have determined that there are telltale signs that a DBQ could potentially be fraudulent,” Smith said during a House VA subcommittee hearing last month. “The tool will be [able] to quickly identify potential problem cases. The VA is being proactive in this space.”
When a DBQ is flagged, the VA is likely to require the veteran to undergo a new compensation and pension exam, which is used to determine disability ratings and monthly payments.
The system will not only review new claims. The VA plans to re‑analyze DBQs dating back to 2010, significantly expanding the scope of claims subject to renewed scrutiny.
"VA is developing a new safeguard to protect Veterans from predatory companies that submit fraudulent disability benefits questionnaires (DBQs) for Veterans seeking benefits," Peter Kasperowicz, VA press secretary, told Newsweek.
"This data collection tool, which has not been deployed yet and is still in development, will help Veterans Benefits Administration field staff identify suspected fraud. It relies on manual data entry and analysis to help identify patterns that may help VA identify when organized fraud rings are posing as legitimate medical providers and preying on Veterans (for example, by excessively charging them)."
What Are Disability Benefits Questionnaires, or DBQs?
Disability Benefits Questionnaires are standardized forms available on the VA’s website that allow private medical providers to document the severity of a veteran’s service‑connected condition.
Veterans often submit DBQs as part of their disability claims to support eligibility for compensation and to help establish how severe a condition is.
When Will the Automated Tool Be Launched?
The VA expects the automated fraud‑detection tool to launch during fiscal year 2026, according to agency officials.
While an exact start date has not been announced, the system is being positioned as part of a broader push to use artificial intelligence to improve efficiency and accuracy across veterans’ benefits programs.
Despite the VA’s assurances, some veterans and advocates worry the system could have unintended consequences for people who are not committing fraud.
“There will be some fraud found, but a lot of DBQs [will be] questioned that may not be fraud,” James Cameron, a Marine Corps veteran and retired benefits service officer, told Stars and Stripes.
Critics warn that being flagged, even incorrectly, could force veterans to undergo additional medical exams, slow down the claims process, or create anxiety about losing benefits they depend on.
Compensation and pension exams can take time to schedule, and any delays could have financial consequences for veterans who rely on monthly disability payments.
What Common Scams Impact Veterans?
VA officials say the tool is aimed largely at identifying patterns associated with organized fraud, particularly high‑volume submissions that use nearly identical language across multiple DBQs. These schemes often involve third‑party companies that charge veterans for help filing claims while submitting questionable medical documentation.
“Undoubtedly, some veterans will grow concerned over revisions to disability benefits, but the VA claims this is more about preventing fraud than causing complications. The new fraud-prevention tool the VA is using will scan for any problems with submitted questionnaires,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
“While the majority of these questionnaires have documented medical evidence to verify a veteran's health complications, the tool will target situations that appear fraudulent or embellished.”
What People Are Saying
Kasperowicz, also to Newsweek: "This is not an AI tool – it relies on manual data entry and analysis. This tool is forward-looking only. VA will not use the tool to revisit previously finalized and processed DBQs. Additionally, this initiative will not change how VA evaluates or decides claims. No Veteran’s claim or benefit will be reduced or denied because of this effort."
Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek: “This sounds more like a way to refuse treatment and benefits than it does fraud elimination. Safeguards are already in place to detect fraud, so adding a slew of new complicated rules on top of the already complicated VA rules only makes it more difficult for our aged veterans to navigate the system and receive the care they need.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “For veterans, if you've been reporting honestly, there shouldn't be any concern. The tool's introduction is a reminder to make sure you have medical verification of your condition.”
What Happens Next
The VA maintains that most veterans have nothing to fear from the new system and that the focus is on protecting the integrity of the benefits program. Still, the scale of the review, as it covers more than a million DBQs, has raised concerns that legitimate claims could be caught in the net as the agency ramps up enforcement.
“The concern here is that even legitimate claims could be denied should the AI detect a pattern of claim submission similar to fraudulent claims,” Powers said. “This new initiative could allow the VA to simply deny claims without due process.”
03/12/2026, 4:25 p.m. EST: This article has been updated with comment from the VA.
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