Financial scams pose a significant risk to military personnel and veterans, as highlighted by retired Navy Rear Admiral Brian E. Luther, president and CEO of Navy Mutual. Despite Luther’s extensive experience in financial matters, he recently faced an attempted scam, illustrating the evolving tactics of fraudsters targeting military communities.
Since assuming leadership at Navy Mutual in 2020, Luther has witnessed his family being targeted by scammers approximately every two years. The nonprofit organization, which has served veterans since its founding in 1879, actively educates military families about financial fraud to help them protect their assets. According to the Federal Trade Commission (FTC), military consumers reported losses of nearly $584 million to fraud in 2024.
Luther shared his personal experience with scammers on LinkedIn, emphasizing the need for vigilance. “We’re trusting people,” he explained, noting that scammers exploit this trust. His story aimed to raise awareness: “If it could happen to him, it could happen to me.”
The scam targeting Luther began with a phone call impersonating his financial institution. The scammers provided information tailored to him, claiming to be from the fraud prevention office of his credit union. They escalated the urgency of the situation, asserting that a fraudulent charge had been made on a credit card he shares with his wife. Unbeknownst to Luther, the scammers had spoofed the credit union’s phone number.
As the conversation escalated, they urged him to log into his account and change his password. Recognizing the red flags, Luther realized that legitimate financial institutions do not request such sensitive information. When he asked for the scammer’s name, the call abruptly ended. After contacting his credit union, he learned there had been no legitimate outreach, prompting immediate action to change his account numbers as a precaution.
Luther advises service members to remain cautious when receiving unsolicited communications regarding their accounts. “They don’t have to talk to the people asking for information,” he stated. Instead, he urges individuals to cease communication and contact their financial institution directly using verified numbers. He cautioned that once scammers obtain a small amount of information, they can leverage it to gain further access.
Navy Mutual identifies various scams targeting military personnel. Common tactics include shifting communications to different numbers or email addresses to take over accounts. Such shifts trigger fraud alerts, prompting the organization to verify any changes with members directly.
The FTC outlines several signs of potential scams: impersonation of known organizations, claims of urgent problems or prizes, pressure to act quickly, and demands for payment through unconventional methods. Scammers have increasingly adopted sophisticated techniques, including impersonating local law enforcement and utilizing social media to create a sense of urgency.
Luther highlights the importance of community awareness among service members and their families. He encourages open discussions about scams to prevent others from falling victim. Moreover, the FTC emphasizes the need for older veterans to exercise caution when responding to unexpected calls or emails, particularly those that exploit feelings of loneliness.
Financial scams can have severe consequences, especially for those living paycheck to paycheck. Losing funds to a scam can create significant stress for individuals and families, potentially impacting a service member’s security clearance and career trajectory. Recovery from identity theft can be a lengthy process, with victims facing challenges in repairing their credit scores.
In the face of such threats, immediate action is crucial. Victims of scams should take steps to protect themselves and report incidents to authorities. “Failure isn’t a character trait. It’s an event,” Luther stated. He emphasizes the importance of learning from these experiences and recognizing the sophistication of current scams.
“This is a persistent threat,” he concluded. “It’s a clear and present danger to your financial health, and you need to prepare yourself.” As scammers become increasingly adept at exploiting vulnerabilities, awareness and proactive measures remain essential for safeguarding financial security within the military community.