The Sweepstakes Scam that Cost a Retired Navy Chief $100,000

Riley Williams, a retired Navy chief with dementia, believed he had won a $1 million sweepstakes and a new car. Instead, a series of escalating payments—demanded by a caller who promised to deliver the fictional prize—drained more than $100,000 from his savings and brought him to the edge of losing his home.

The scam began in January when a man claiming to be “David Martin” called Williams and announced he was the winner. To claim the winnings, Williams was told he needed to pay $500 in taxes using MoneyPak cards from Walmart. After the initial payment, the demands grew: repeated wire transfers, a large loan from a Florida bank, and monthly payments of $480. Over time, the transfers totaled over $100,000, exhausting his retirement funds.

Williams’ daughter, Emily Sage, uncovered the fraud when she realized her father had been sending thousands of dollars to strangers. She had him record the scammer’s calls and intervened before the con artist could convince him to sell off his mortgage—a move that would have cost the family the house. “He’s given 20 years of his life to the country,” Sage said. “I think it’s sad that people take advantage of anybody.”

The case is just one example among a wave of scams targeting veterans. Federal Trade Commission data cited by the Military Officers Association of America shows military members, veterans and their families reported losing $684 million to fraud in 2025. The Department of Veterans Affairs has warned that scammers frequently pose as federal agencies to steal benefits and personal information.

Advertisement

Why Veterans Are Prime Targets for Financial Scams

The FTC Numbers: $684 Million Lost by Military Families in a Single Year

Veterans and active-duty service members are not small-time targets. The Federal Trade Commission recorded $684 million in fraud losses among this group in 2025. That figure reflects both the scale of the problem and the financial resources scammers are after—retirement savings, disability benefits, home equity and regular income streams. Williams’ $100,000 loss, while extreme, is far from isolated.

Why Impersonation Scams Work on Veterans

A 2025 AARP survey found that 39% of veterans had been contacted by someone claiming to represent the VA or another government agency, and 28% believed their military service made them a specific target. Scammers exploit the trust many veterans place in federal institutions and their familiarity with benefit-based communications. In Williams’ case, the sweepstakes angle was a classic hook, but the fraud succeeded because the scammer repeatedly leveraged urgency and secrecy—common tactics that overwhelmed the victim’s judgment, especially given his dementia.

The Financial Mechanics of a Sweepstakes Scam

Sweepstakes scams follow a predictable pattern: the victim is told they’ve won a prize but must pay upfront taxes, fees or shipping. Payments are demanded via untraceable methods—gift cards, wire transfers or cryptocurrency. Over time, the amounts escalate, and the scammer uses social isolation to prevent the victim from seeking help. Williams bought “a stack about three or four inches” of Walmart MoneyPak cards, eventually wiring thousands of dollars in increments of $2,000 and $4,000. Because no legitimate sweepstakes ever requires a winner to pay money to receive a prize, these transactions were red flags that went unnoticed until his family stepped in.

How Veterans and Families Can Protect Against Sweepstakes and Impersonation Scams

  • Verify any prize claim yourself. If someone calls or emails saying you’ve won, do not pay anything to collect it. Legitimate sweepstakes never require taxes or fees up front. Contact the company or organization directly using a number you find independently—not one provided by the caller.
  • Watch for payment methods that cannot be reversed. Gift cards, wire transfers and cryptocurrency are the tools of scammers because the money disappears fast. Williams was directed to buy Walmart MoneyPak cards and wire money in small increments to avoid detection. If you’re asked to pay this way for any “prize,” hang up.
  • Report veteran-specific fraud to VSAFE.gov or call 1-833-38V-SAFE. This joint VA-federal resource is designed specifically to help veterans who have been targeted. You can also file a complaint at reportfraud.ftc.gov or with the FBI’s Internet Crime Complaint Center at ic3.gov.
  • Involve a family member or trusted contact early. Williams’ daughter recorded the scammer’s calls, which helped piece together the fraud. Having a second pair of eyes on large transactions—especially for loved ones with cognitive issues—can stop a scam before it drains a life’s savings.