Note: If you think you are a victim of a scam targeting Navy Federal Credit Union customers, Attorney Gary Byler is representing victims for free. His contact information is at the end of this article.
A local attorney is taking legal action to help victims of a widespread scam that has targeted Navy Federal Credit Union customers across Hampton Roads, demanding the financial institution refund money to fraud victims who were forced to repay loans they never authorized.
Gary Byler said he was "flabbergasted" after seeing recent a WTKR News 3 Investigation about victims being required to pay back personal loans that suspects took out using their cell phones in what federal prosecutors call the "parking lot scam."
"It's a no-brainer. Anytime we see a bully picking on somebody, it doesn't sit well with us," Byler said.
Previous coverage: Feds arrest 10 suspects in massive scheme targeting Navy Federal customers
A recent federal indictment accuses 10 suspects of involvement in 33 different cases. The investigation, which began in October 2023, has documented 500 victim reports throughout Hampton Roads with losses of at least $2 million.
The scam typically begins when suspects approach victims in parking lots, claiming they need help. They ask to use the victim's phone, then quickly access the person's Navy Federal mobile app to take out personal loans, make withdrawals and transfer the money to their own accounts.
According to prosecutors, the suspects use various methods while in possession of victims' phones, including stealing login information, creating financial disputes, making withdrawals, and transferring money through Zelle, Cash App and Venmo.
Victims say they're forced to pay back thousands
Despite reporting the fraud to Navy Federal, victims WTKR spoke with say they were told they had to repay the money.
Angel Taylor says back in 2023, a suspect approached her in a Walmart parking lot in Newport News with what appeared to be a crying baby in his car. He said he couldn’t find his wife and needed to call her.
"There's a baby in his backseat and he that's crying too and I'm like yes can borrow my phone," Taylor said.
Taylor said she let him use her phone and moments later, he took out a personal loan with her mobile app, then transferred the money to another account. She said she was told she had to pay back $7,000.
Watch: Navy Federal customer forced to pay back loan she didn't take out after scam
Travis Minson, another victim, says the moment he fell victim to the loan personal scam happened almost instantly back in 2024. He says he let suspects use his phone after they flagged him down near the Lynnhaven Mall in Virginia Beach.
Minson says the suspects told him they lost their debt card and needed money. He says he was in a good mood that day and wanted to help them out.
He says despite the loan application having wrong information on it, Navy Federal told him he needed to pay back the $7,000 personal loan with interest.
"It got approved and sent to my bank account in seconds," Minson said.
Watch: Scam targeting Navy Federal customers costing victims thousands in Hampton Roads
Matt Tignor said he was required to pay $178 per month for five years for a personal loan he reported as fraud with 18% interest. He said he was also targeted near the Lynnhaven Mall.
"(Navy Federal Credit Union) 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.
Watch: Victims warn community after losing thousands in seconds
Another victim who didn’t want to be identified due to safety concerns was abducted, according to a police search warrant.
The victim said a friendly group approached him outside of the gym in Virginia Beach last October asking to use his phone. He said they took out a personal loan using his mobile device.
He contacted them when he realized what happened and met up with them again, thinking it was a mistake, which is when he says things escalated. A search warrant outlines how the suspects allegedly drove him around and forced him to buy gift cards, money orders, withdraw cash from ATMs, and take out another loan.
He told WTKR News 3 Navy Federal denied his fraud claim "because I willingly gave up my phone.”
Police arrested three suspects. Charges got dismissed for two of the suspects, but the preliminary hearing for the third suspect, Kymon Tyson, is set for Oct. 17 at the Virginia Beach Courthouse.
Local attorney taking action after hearing victims' stories
Byler argues the approach of making the victims of crimes pay back loans they didn’t take out is fundamentally flawed.
"It cannot be the rule that a bank can make a loan that you didn't ask for, give the money to somebody you don't know, and make you pay. Obviously, that can't be the rule. Our banking system would collapse," Byler said.
While acknowledging that Navy Federal is also a victim, Byler said the responsibility should not fall solely on customers who hand over their phones.
"Why it is that Navy Federal thinks those folks ought to pay for fraud perpetrated on the credit union is absolutely beyond me," Byler said.
We asked Navy Federal when they knew about the fraud, how many customers have been impacted, and if new procedures have been put into place regarding personal loans, but they would not directly answer any of those questions. WTKR has repeatedly reached out to them over the past year.
In their latest statement, Navy Federal Credit said:
"Navy Federal Credit Union is deeply concerned about these schemes and is actively cooperating with law enforcement in investigations. These cases illustrate how important it is to treat an authenticated banking app with the same level of caution as a wallet.
We have also taken several steps to protect our members from this type of fraud, including member education campaigns focused on mobile device safety and scam awareness.
We also encourage members to enable additional security features within payment apps—such as Face ID or biometric authentication—on platforms like Venmo, Cash App, and Zelle to help prevent unauthorized access.
These types of scams can happen anywhere, not just in Virginia. We encourage all members—regardless of location—to remain vigilant and cautious about letting others use their phones, especially in unfamiliar or high-traffic public areas.
If you believe you’ve been targeted or affected by this type of scam, please contact your local police department immediately. Navy Federal is committed to supporting our members and encourages anyone impacted to also reach out to us directly."
We previously asked Navy Federal why victims are saying they’ve been forced to pay back loans and funds that were taken fraudulently.
They said, “Navy Federal only holds members financially responsible for transactions where there is evidence they authorized the transfer or loan. Each case is reviewed individually, and outcomes may vary based on available evidence and legal proceedings.”
Byler said he sent letters to the credit union informing them he is representing several victims and requesting their money be returned.
"I call on Navy Federal to do the right thing, to go through their loans, re-look at every one of these contested loans and if it meets this pattern, to issue an apology, a full refund with interest and a letter to the credit agency," Byler said.
Byler said he's representing these victims free of charge and encourages anyone who has been affected by this scam to contact him:
- Gary Byler's cell: 757-619-4345
- Gary Byler's email: gary@garybyler.com
