I live near Norfolk, VA (the East Coast port for the U.S. Navy), and it's similar, but the 'fake valor', where those who never served pose as veterans has even reached the various veteran communities, so it's nothing to sneeze at. Now, those agencies are working to check everyone they vet (or appoint to office) for fear of another embarrassing scandal. There's no better way to shrink a veteran's group membership then to appoint a spokesman who never served a day in the field, yet claims national attention by speaking for all those who did.
It should be pointed out that in many cases, those scandals aren't so much over the person "being a veteran" because in virtually all of such cases, they did actually serve on active duty at some point.
The issue there is that the dd-214 isn't particularly descriptive as to where a person may or may not have been, even when looking at a "long-form" which will detail all of their (unclassified) awards.
Short form DD-214(which is the one normally used) is even less useful in that respect. Which can make it rather difficult for veterans groups to determine one way or another. Kind of like there are plenty of veterans who can claim campaign ribbons for Operation Enduring Freedom, Operation Iraqi freedom, et al who never actually set foot in either Iraq or Afghanistan, or even came within several hundred miles of either country. For that matter, I understand my unit is technically qualified for the OIF campaign medal, but I haven't seen it officially listed anywhere, but I think some of that is bureaucracy at it finest, as the ship I served on was decommissioned prior to the medal being finalized(so nobody remained at the command to have it added). That said, being a Navy Ship, we never actually moored or dropped anchor in Iraq, although we did spend a lot of time in its territorial waters, and a number of our crew members DID set foot on "Sovereign Iraqi Territory" even if it wasn't land. ;) (edit just for giggles: https://en.wikipedia.org/wiki/Al_Ba%C5%9Frah_Oil_Terminal )
Of course, the classified medal/ribbon awards add further complications to things. Thankfully in my case, I'm not in that club, but I know a few people who claim to be.
Submariners and Special Forces in particular tend to be the most prone to being subject to that one. Since I wasn't in either "community" I didn't encounter it myself. But I knew people who I know were in those communities, and they all claimed to have such things in their collection.