When it comes to financial matters, retired Navy Rear Adm. Brian E. Luther is more knowledgeable than most people.

Yet even Luther — who serves as president and CEO of Navy Mutual — nearly fell victim to a scam, which shows how sophisticated fraudsters have become.

Since taking on the leadership role at Navy Mutual in 2020, Luther and his family have been targeted by scammers almost every other year.

Navy Mutual works hard to regularly warn its members about scams as part of its mission to help service members and veterans protect their financial security. According to the Federal Trade Commission, military consumers reported losing a staggering $584 million to fraud in 2024 alone.

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“We’re trusting people,” Luther said. “The scammers are trying to find people who are trusting and vulnerable, and they take advantage of them.”

He even shared his own experience in a LinkedIn post last year. “One reason I posted it was so that everybody could learn, ‘Hey, if it could happen to him, it could happen to me,’” Luther explained.

Navy Mutual, which has existed since 1879 as a congressionally chartered nonprofit veterans service organization, provides life insurance and annuities, offers financial education, and assists veterans with benefits.

The scam that nearly caught Luther began with a phone call that appeared to be from his financial institution.

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The call was very specific, referencing details about him and his family. His wife had traveled to New York to visit friends and used her credit card for gas.

The scammers claimed to represent the fraud prevention office at his credit union and said they were investigating a fraudulent charge.

The call escalated through several levels of supposed managers, each one increasing the sense of urgency. Luther realized something was off when they asked him to log into his account and change his password.

“I let them walk me all the way to, ‘We need to log into your account and change the password. We think you’re in the middle of a hacking evolution,’” Luther said. At that moment, he pushed back, saying no bank should ever ask for a password and requested the caller’s name.

“Then of course they hung up,” he recalled. He immediately contacted his financial institution, who told him, “Admiral Luther, we have no record of anyone calling you about your account today.” Out of caution, the fraud department changed all of his account numbers to prevent any risk.

The scammers had spoofed the phone number of his credit union. Spoofing is a common trick in which scammers disguise their phone numbers, email addresses, or websites to make them appear legitimate.

Luther urges service members to stop and think before reacting to suspicious calls, texts, or emails. He advises, “You don’t have to talk to them. Break the communication and call your financial institution directly using a number you know is legitimate.”

If someone has already shared information, then they must quickly secure their accounts. “Once the scammers get a little information, they can replicate more,” he explained.

Navy Mutual has observed that most scams involve shifting communication to a different phone number, email, or address. This often triggers fraud alerts and prompts the institution to check with the member. With enough personal details, fraudsters can even open credit accounts in the victim’s name and begin spending money.

Scams today take many forms. Fraudsters send fake job offers, messages about packages waiting to be delivered, or claims about unpaid tolls. Others impersonate local law enforcement officers or create romance scams to emotionally manipulate people.

The FTC has identified four common red flags: pretending to be from a trusted organization, claiming there is a problem or prize, pressuring the victim to act immediately, and demanding payment in a very specific way such as cryptocurrency, gift cards, or money transfers.

The FTC also provides resources to help people avoid scams. These include blocking unwanted calls and texts and refusing to share personal information with anyone unless you initiated the contact.

They encourage troops to talk with fellow service members and family members about scams so that others can be alert as well.

Older veterans are especially vulnerable because scammers often prey on those who may be lonely or eager for companionship. Fraudsters build fake relationships online that eventually drain the victim’s finances.

Service members are also urged to warn loved ones before deployments about scam attempts that use social media to create false emergencies or fake investment opportunities.

“When you’re living paycheck to paycheck and all of the sudden you lose $1,000 on a ‘get-rich-quick’ scam, that creates financial stress for an individual or a family,” Luther explained. This financial strain could even jeopardize a service member’s security clearance and career.

If identity theft damages a credit score, it can take years to recover and may open the door to more fraud or even extortion.

Sometimes victims do not realize they have been scammed until checking their bank accounts. In more severe cases, victims may withdraw money from retirement accounts or take out loans, only to lose it all. Such losses can put their future stability at serious risk.

If a scam does occur, it is vital to act quickly. Victims should take steps to prevent further damage and report the fraud to the FTC. Luther reminds service members that being scammed is not a personal failure.

“Failure isn’t a character trait. It’s an event,” he said. “You learn from it. Just because you fell for a scam doesn’t mean you’re a bad person. 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.”

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