Key Highlights
- Navy Federal Credit Union is under scrutiny for a “parking lot scam” targeting customers.
- Federal prosecutors have indicted Corey Smith in connection with the fraud scheme.
- Victims are forced to repay loans taken out in their names, even though they did not apply for them.
- Attorney Gary Byler is helping victims fight back against Navy Federal Credit Union’s practices.
The “Parking Lot Scam” and Its Victims
In recent years, the Navy Federal Credit Union has faced significant scrutiny for a fraudulent scheme known as the “parking lot scam.” This ongoing fraud targets individuals in the Hampton Roads region, often military-aged males. The scammers approach victims near Navy Federal branches, using intimidation and deceit to gain access to their cell phones, from which they can transfer money without permission.
According to previous WTKR reports, this scheme has victimized hundreds of individuals over the past few years. In a typical scenario, suspects would approach victims in parking lots, claiming to need assistance with a phone or other issue. Once victims handed over their phones, scammers would quickly transfer funds from online accounts.
Legal Developments and Indictments
The latest development came when federal prosecutors charged Cory Smith in connection with the parking lot scam, marking his indictment as part of a broader fraud scheme targeting Navy Federal Credit Union customers. This new case follows previous indictments against ten other individuals for similar crimes. The indictments highlight the ongoing nature of this fraudulent activity and its impact on numerous victims.
According to Gary Byler, a Virginia Beach attorney who has been actively helping victims through civil actions, the pattern remains consistent across different cases. “We’re making some real progress,” stated Byler. He emphasized that victims should not be responsible for repaying loans they never initiated: “If you didn’t initiate the loan, if you didn’t get the money, then you don’t owe the money.” This stance is based on the belief that electronic transfers are created by financial institutions to maximize profits.
Fighting Back Against Navy Federal Credit Union
Attorney Gary Byler has been working with about 40 people affected by the scam. He believes in providing legal support to those who have fallen victim to these fraudulent practices. “The world is not a perfect place,” stated Byler, adding that it was never his question whether they would help victims: “No way I could stand by.” Byler has filed two civil actions—one in Virginia Beach and one in Suffolk—against Navy Federal Credit Union.
Despite efforts to gather information from the credit union, responses have been limited. A Navy Federal spokesperson stated, “We can’t comment on an ongoing investigation but advise all members to avoid sharing their phone with any unknown individuals.” The credit union has not provided details about potential changes to their online personal loan application process or why they are charging interest to members who reported fraud.
Conclusion
The ongoing “parking lot scam” targeting Navy Federal Credit Union customers continues to impact numerous victims in the Hampton Roads region. With legal actions initiated by both federal prosecutors and local attorneys, there is a growing effort to hold financial institutions accountable for their role in these fraudulent practices. As the case progresses, it remains to be seen how this situation will unfold and what changes may come to protect consumers from similar scams in the future.
