- Federal prosecutors have issued another indictment in the widespread “parking lot scam” targeting Navy Federal Credit Union members.
- Victims report being approached in branch parking lots, tricked into handing over their phones, and then having fraudulent loans taken out in their names.
- Many victims are being forced by Navy Federal to repay these fraudulent loans, with some facing interest rates as high as 18%.
- An attorney is now representing approximately 40 victims in civil lawsuits filed against the credit union.
New Indictment in Pervasive ‘Parking Lot Scam’
Federal prosecutors have handed down another indictment in a brazen fraud scheme targeting Navy Federal Credit Union customers, a crisis WTKR has been covering for over a year. The latest charges against Corey Smith bring the total number of individuals indicted in connection with the “parking lot scam” to eleven, highlighting the escalating effort to bring justice for hundreds of victims in the Hampton Roads region.
How the Scam Unfolds
The scheme follows a consistent and disturbing pattern. Scammers approach members, often military-aged males, in or near Navy Federal branch parking lots. They typically feign a problem and ask to use the victim’s phone. Once the phone is in their hands, they use what prosecutors call “deceit and intimidation” to access the victim’s mobile banking app, where they quickly transfer funds or, more devastatingly, apply for and receive personal loans in the victim’s name.
Victims Left with Fraudulent Debt
The nightmare for customers doesn’t end with the theft. All victims who have spoken out report that Navy Federal is holding them responsible for the fraudulent loans. They are being demanded to repay the money they never received, including interest. One victim, Matt Tignor, reported that he was being charged an 18% interest rate on a loan he never authorized.
“[Navy Federal] told me I had to start paying it back immediately because even though I submitted everything, it’s still my responsibility to pay it,” Tignor said.
Legal Battle Heats Up Against Navy Federal
The plight of these victims has drawn legal support. After seeing reports on the scam, Virginia Beach attorney Gary Byler has taken up the cause, now representing around 40 affected individuals.
Attorney Gary Byler Steps In
Byler has filed two civil actions, one in Virginia Beach and one in Suffolk, to force a response from the credit union. He argues that the responsibility for these fraudulent transactions should not fall on the customer.
“If you didn’t initiate the loan, if you didn’t get the money, then you don’t owe the money,” Byler stated. “These electronic transfers are for the benefit of the institutions. They were created by the institutions to maximize their profits.”
Navy Federal’s Limited Response
When asked about the new indictment and the civil lawsuits, Navy Federal provided a limited statement. “We can’t comment on an ongoing investigation but advise all members to avoid sharing their phone with any unknown individuals,” a spokesperson said. The credit union did not address questions about potential changes to its loan application process or why it is charging interest to fraud victims.
A Fight for Justice
Byler remains committed to fighting for those affected, with court hearings scheduled for December. “No way I could stand by,” he said. “And the offer is still open. We’re still getting folks who have been cheated.”
Image Referance: https://www.wtkr.com/investigations/navy-federal-parking-lot-scam-leads-to-another-federal-indictment-as-victims-fight-for-justice