Financial scams continue to pose a significant threat to military personnel and veterans, according to retired Navy Rear Admiral Brian E. Luther, president and CEO of Navy Mutual. Luther’s own near-miss with a sophisticated scam highlights the growing danger, as he revealed that his family has faced targeting by scammers roughly every other year since he assumed his leadership role in 2020.
Serving as a nonprofit veterans service organization since its inception in 1879, Navy Mutual plays a vital role in educating military families about financial safety. The organization regularly alerts its community about emerging scams to help protect their financial futures. A report from the Federal Trade Commission (FTC) indicates that military consumers reported losses totaling $584 million to fraud in 2024.
Luther shared his personal experience on LinkedIn, aiming to raise awareness about the tactics employed by scammers. “We’re trusting people,” he stated, emphasizing that scammers exploit vulnerabilities. The call that nearly ensnared him was made to his personal phone, falsely claiming to be from his financial institution. The scammers had specific details about his family, including a recent trip his wife took to New York, during which she used her credit card for gas.
As the conversation progressed, the scammers escalated the urgency of their claims, attempting to convince Luther to log into his account and change his password due to a supposed hacking attempt. Recognizing the red flags, Luther questioned their legitimacy, at which point they promptly ended the call. After contacting his credit union, he learned that no such call had been made.
In response to the incident, the credit union’s fraud department took immediate action, changing all of Luther’s account numbers as a precautionary measure. The scammers had successfully spoofed the credit union’s phone number, a common tactic to deceive victims into believing they are communicating with a trustworthy source.
Luther advises service members to remain vigilant when receiving unsolicited communications regarding their financial accounts. He suggests breaking off contact and reaching out to their financial institutions directly using known contact numbers. “If you’ve shared any information, secure your accounts immediately,” he cautioned, noting that scammers can leverage even small bits of personal information to escalate their schemes.
The tactics of scammers are diverse, encompassing online job offers, educational scams, and even impersonations of local law enforcement. The FTC identifies several warning signs of scams, including unsolicited communication from familiar organizations, pressure to act quickly, and requests for payment through unconventional means, such as cryptocurrency or gift cards.
To aid in prevention, the FTC encourages discussions among service members and their families about the risks of scams. This is especially crucial for older veterans, who may be more susceptible to fraud due to loneliness or isolation. Additionally, service members are urged to inform their loved ones about potential scams, particularly before deployments, as fraudsters often exploit social media to send urgent messages regarding fabricated issues or enticing investment opportunities.
The psychological and financial impacts of falling victim to a scam can be profound. Losing significant amounts of money, such as $1,000 in a fraudulent scheme, can create stress not only for the individual but also for their families. Such financial strain may jeopardize a service member’s security clearance and career prospects.
Often, victims discover they have been scammed only after reviewing bank statements. Luther warns that the consequences of identity theft can persist for years, complicating credit repair efforts and increasing the risk of further scams.
In the event of a scam, swift action is essential. Victims should report the incident and take steps to mitigate further risk. “Failure isn’t a character trait. It’s an event,” Luther remarked, emphasizing that falling for a scam does not diminish a person’s worth. “You cannot underestimate the sophistication of scammers right now. This is a persistent threat. It’s a clear and present danger to your financial health, and you need to prepare yourself.”
