Hundreds of victims throughout Hampton Roads have lost millions for simply trying to help a stranger by letting them use their phone. It's all part of a cell phone scam targeting Navy Federal customers.
Previous coverage: Victims warn community after losing thousands in seconds
Over the past year, the WTKR Investigative Team has spoken with multiple people who say they've fallen victim to the scam. Now, federal prosecutors have announced the arrest of 10 suspects involved in a ring to target Navy Federal customers in cities throughout the region.
Recent case involves 30+ victims, prosecutors say
A federal indictment states the following suspects are facing wire fraud, bank fraud and conspiracy to launder money charges: Rodney Thornton of Norfolk, Steven Carter Jones III of Norfolk, Jamaica Sumner of Norfolk, Troy Lee Davis III of Virginia Beach, Laterrance Park Jr. of Virginia Beach, Jordan Pugh of Norfolk, Lois Irene Staton of Norfolk, Joy Davis of Norfolk, Persia Brown of Virginia Beach and Andrea Holley of Norfolk.
Officials say throughout Hampton Roads, there have been 500 victim reports about a "parking lot scam" with a loss of over $2 million.
Here's how the scheme works, according to prosecutors: Offenders will find unsuspecting victims in parking lots, usually near Navy Federal branches, and ask them questions before requesting a favor. When they gain access to the victim’s phone, they will make unauthorized loan applications, financial disputes, transfers, and withdrawals from victims' accounts via the Navy Federal mobile application.
Prosecutors say suspects would escalate tactics when the victim would not comply. In one incident, a suspect made a firearm visible to the victim, prosecutors added.
Previous coverage: 3 arrested, accused of stealing thousands from victim in Virginia Beach parking lot
There were several ways the suspects would get their hands on victims' money, according to prosecutors. They said they would submit fake a Personal Expense Consumer Loan on the victim’s phone then transfer the funds.
It states, “conspirators disputed large debits in the victims’ banking accounts, and Navy Federal would temporarily credit the victim’s account for the disputed funds, which increased the funds available in the victim’s account for the conspirator to unlawfully obtain.”
They said suspects would access and transfer the victim’s personal identifiable information, log-in information, and other financial information. They would also access and transfer money to and out of Cash App, Venmo, and Zelle.
It states in some cases, the suspects covered up their digital footprint on the victim’s cell phone by deleting email notifications, deleting the victim's banking app, or returning the phone to the victim in airplane mode.
Federal officials said there are currently 33 victims connected to this recent indictment and that number continues to grow.
They said the suspects are usually in a rental car with a group of people, and the suspects work together to gain the victim's trust. They say sometimes, there is a child with them.
Lawyers for Sumner, Davis, Pugh, Davis and Holley told News 3 they had no comment at this time. Several of the suspects are being held without bond.
Victims in separate cases forced to pay back thousands
Last September, 24-year-old Travis Minson said two men flagged him down at a stoplight near the Lynnhaven Mall in Virginia Beach. He says they asked if he had a Navy Federal account, then said they needed help.
"They were from out of town. They didn’t have their ID or their debit card and they couldn’t go to Navy Federal and get their debit card without their ID,” said Minson.
Minson said they seemed genuine and he wanted to help them. He said he gave them his cell phone so they could sign into their Navy Federal app, but instead, they got into his account and quickly took out a $7,000 personal loan in his name. This made his account balance look much higher than it was.
“It [the personal loan] got approved and sent to my bank account in under seconds,” said Minson.
Watch: Scam targeting Navy Federal customers costing victims thousands in Hampton Roads
While the suspects had his phone, they secretly sent money to their Cash App account and told him they accidentally transferred too much, and he gave them the difference.
He showed us documentation where they put the wrong workplace on the loan application and the wrong number of years he worked there. However, Navy Federal told him he was required to pay back the loan with interest. No one was arrested in his case.
College student Angel Taylor told WTKR she had a similar encounter in March of 2023 that also ended with her having to pay back thousands. She says while she was in a Newport News Walmart parking lot, she was approached by a man in a car who told her he couldn’t find his wife. He asked Taylor if he could borrow her phone.
"[He had] a baby in his back seat and he was crying too," said Taylor. "I was like, 'Yes, you can borrow my phone.'"
Watch: Another Navy Federal customer forced to pay back loan she didn't take out after scam
This was a $4,000 mistake. Taylor, who was 19 at the time, said the man took out a personal loan and a cash advance while using her Navy Federal App, then transferred the money to someone else.
No one was arrested in her case.
“It’s just unbelievable. I didn’t even know you could apply for a loan. It was just insane that it happened in such a small amount of time,” said Taylor.
She says after Navy Federal told her she had to pay the money back, she got a lawyer.
Suffolk police recently arrested three people for a similar crime: Omari Stephon Woolard, 22, of Norfolk; Dirana Lovell Johnson, 40, of Portsmouth; and Keontay Omarion Britt, 21, of Norfolk.
Following the arrest, police told us they've recently seen an uptick in these incidents, especially involving money being transferred from Navy Federal Credit Union apps. They've also seen victims who've faced the same outcome as Minson and Taylor.
“A lot of our victims are still held on the hook for a lot of these money transfers that they didn’t authorize to happen,” said Detective James Chapman with the Suffolk Police Department.
Navy Federal's response to WTKR's questions on scam
WTKR reached out to Navy Federal with questions about customers who've been impacted by the scam.
We asked if they’ve made changes to their Personal Expense Consumer Loans and how many people who bank with Navy Federal have been impacted. They said, “Navy Federal does not disclose this information.”
We also asked if other safety changes have been made to better protect their members from falling victim to these scams.
They said, “Navy Federal consistently adapts its security practices to address emerging fraud trends. This includes ongoing enhancements to digital safeguards, authentication protocols, and member education. The credit union also encourages members to protect their devices and credentials and to report suspicious activity immediately.”
Lastly, we asked why Navy Federal has required victims to pay back loans and funds that were taken from the victims in these situations. We also asked if this changes if a person is convicted of the crime involving the victim.
They answered, “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.”
The victims WTKR spoke with say they contacted Navy Federal about the fraud to report it either immediately or shortly after it occurred. They were all told they needed to pay back the money.
Police stress the importance of not letting people you don't know use your phone.
