Hundreds of people in Hampton Roads have fallen victim to what federal prosecutors call the "parking lot scam," including a Hampton man who was conned out of $5,000 while trying to help two strangers.
In July 2024, Stephen Herzog was working his side hustle in a parking lot on Mercury Boulevard in Hampton when two men approached him.
"I was just sitting in my car waiting for an Instacart order and these guys pulled up next to me and a black Atlas. They were like, ‘hey do you know where the Navy Federal is around here?’ I told him where there was one across over that way," Herzog said.
Watch previous coverage: The parking lot scheme plaguing Navy Federal customers
The men told Herzog they did not have their debit card but had money in their account. They said they needed $50 and asked if they could transfer money from their account to his, and then have him pay them using Cash App.
Herzog said it all happened so quickly.
"When the conversation happened, everything was so engaging. Everything was fast. They were good. It was really disarming," Herzog said.
Trying to be kind, Herzog agreed to help them. The suspect was having issues trying to make the transfer. Herzog said he handed over his phone for less than a minute, and one of the men manipulated his account while the other distracted him.
"The other guy kept talking to me, but it was only like 10 seconds. He ended up giving me my phone back. When I got my phone back he said he made a mistake because of the misplacement of a decimal so when I got my phone back. I had $5,000 in my account," Herzog said.
Watch previous coverage: 8 out of 10 defendants have pleaded guilty in connection with 'parking lot scam'
Herzog said the suspect had quickly applied for a personal loan and got approved on his mobile app which only made it appear like Herzog had a large sum of money in the account.
The suspect said he hit the wrong amount accidentally.
Not wanting to take the money, Herzog said he sent it back to the suspect through Cash App. Later that day, he realized the men had actually taken out a personal loan in his name with a 16.79% interest rate. He is now responsible for paying back the thousands of dollars.
"With the other dude talking to me at the same time while he was working kind of kept me distracted. They were smooth, man. They got me. They got me," Herzog said.
Hampton Police confirmed Herzog filed a police report, but no one has been arrested.
WTKR has continued to follow through on these cases. Federal prosecutors outlined in one indictment that there are about 500 reports from victims in Hampton Roads.
Watch previous coverage: Navy Federal scam victim reaches settlement to get money back, lawyer says
They arrested 10 suspects and most pleaded guilty in just one case, but cities around the region have other similar cases and several arrests.
"It’s baffling, it was crazy to see how many people were involved to. It’s this massive, on this grand of a scale," Herzog said.
Recently, Herzog was scrolling online and saw my coverage of the issue. He recognized a suspect in another case as one of the men who approached him.
The WTKR coverage of this continued problem caught the attention of attorney Gary Byler, who is now trying to help victims recover their money.
Watch previous coverage: 'Parking lot scam' legislation aimed at fraud prevention heads to Spanberger's desk
Additionally, lawmakers passed new legislation to create a work group to combat the problem, which is currently awaiting the governor’s signature.
For the victims, it has been a frustrating and expensive experience.
"I felt like an idiot, and I felt angry at first because I was operating out of my good nature. After the anger and the frustration, it’s just defeating cause it’s like where am I going to get this money now,” Herzog said.
