Consumer Alerts

If an investment seems too good to be true, it probably is 

OAKLAND — Attorney General Rob Bonta today issued an alert warning Californians about the prevalence of fraudulent investment scams across Meta platforms, including on Facebook, Instagram, and WhatsApp, as well as on other online platforms. Scammers are increasingly using deceptive advertisements (ads) and deepfake technology to lure people into high-stakes scams in order to then defraud them of their savings. Last year, Attorney General Bonta sent a letter to Meta urging the company to adopt protocols to properly tackle this pervasive issue — or otherwise ban all investment ads on its platforms. Attorney General Bonta encourages anyone who may have been a victim of these types of scams to report it to oag.ca.gov/report.

“Californians, we’ve seen an uptick in investment scams across Facebook, Instagram, and WhatsApp. These scams have cost some people their life savings and typically use photos of well-known or trusted people without their permission in order to create the necessary trust to get into consumers’ pockets,” said Attorney General Bonta. “I encourage Californians to learn about common scams and review tips to protect themselves, and I urge investors to scrutinize social media investment ads before investing.”

COMMON SOCIAL MEDIA INVESTMENT SCAMS

The Pump and Dump Scam:

In a pump and dump scheme, victims are lured into online investment groups and convinced to invest in low-priced stocks or deal in volatile cryptocurrencies. The scammers advertise, hype, and recommend buying the stocks or cryptocurrencies, increasing their prices, and then sell when the price is high, while the victims lose their money. These schemes typically follow a three-step process:

1. The Bait: Scam ads appear on Facebook or Instagram featuring recognizable figures, like Cathie Wood (Ark Invest), Joe Kernen (CNBC), or Kevin O’Leary (Shark Tank), without their permission. Other ads may feature less well-known financial advisors, also without their permission, especially those trusted by members of specific cultural or geographic communities. The ads often promise exclusive “insider” memberships or “guaranteed” high-return investment tips.
2. The Shift: Once a user clicks the ad, they are pressured to move the conversation to WhatsApp or other encrypted platforms such as Telegram. 
3. The Hook: Victims are funneled into group chats where they receive so-called “expert” advice and false testimonials. Eventually, victims are coerced into buying stocks or crypto, with the initial fraudulent tips sometimes appearing successful and generating a profit. Victims are convinced to spend large amounts in a stock or cryptocurrency, which then goes up in price and which the scammers sell off at this inflated price, leaving the victims to lose their money once the price plummets.

The Confidence Scam:

In confidence scams, fraudsters develop trusting relationships with their victims and convince them to “invest” using fake investment platforms that drain the victims’ money. These scams can also follow a three-step process:

1. The Bait: Scammers post ads suggesting that investors can make money using an investment platform or strategy. Once the user clicks on an ad, they may be asked to enter their contact information or taken to a different website to do so.
2. The Investment: After the user provides their account information, they are contacted by scammers who develop a relationship of trust and confidence with the victim. Scammers may offer to "teach" the user how to trade on a fake investing platform or even connect the victim with their own personal advisor who will speak with the user daily. Scammers then guide their victims to a legitimate-looking website or app — often a clone of a real trading platform — and ask victims to invest a small amount of money at first. The app will show the investment making significant profits over the course of a few days, and scammers may let the victim withdraw some of the initial profit back to their bank account. Believing the platform is legitimate and having developed a close connection with the scammers, victims will over time invest larger amounts of money. 
3. The Scam: Once the victims seek to withdraw their profits, they are told they need to pay some kind of fee, such as a commission or tax, to do so. Even if the victims pay, the scammers will find other excuses not to return the money. Once the victim stops paying these fees or making more investments, the scammers will disappear along with the victim’s investment.

PROTECT YOURSELF 

Californians should be very cautious before responding to any social media investment ads and making related investments. Reputable broker-dealers and investment advisors typically do not advertise their investment strategies on social media.

Fraudulent transactions, especially those involving cryptocurrency, can sometimes be irreversible. If you choose to deal in cryptocurrency, always keep a paper trail and archive all communications. If you lose your money, you may hear from a purported asset recovery specialist or attorney who promises to retrieve the money you lost for a fee. Be very wary of these people as some may be looking to take advantage of your situation to make money — and may even be scammers themselves.  

To avoid falling victim to predatory investment schemes on social media, people should take the following steps: 

1. Identify Red Flags

Be highly skeptical if you see:

• Promises of guaranteed returns: No legitimate investment is “risk-free” or offers a guaranteed return.
• High-pressure tactics: Warnings that you will “miss out” or demands to invest immediately.
• Celebrity endorsements: Scammers often use AI-generated images or videos of famous entrepreneurs to lure victims.
• Cryptocurrency demands: Requests to use crypto ATMs or to send crypto to private wallets or platforms should be regarded with suspicion. Crypto assets are extremely volatile, and purchasing them involves a very high degree of risk — you should not use any money that you cannot afford to lose.
• Requests to accept other people’s money: Scammers will sometimes ask victims to accept other people’s funds in their bank accounts and convert them to cryptocurrency.  
• Platform hopping: Requests to move the conversation from Facebook to encrypted apps like WhatsApp or Telegram.

2. Verify Before You Invest

Conduct your own independent research:

• Verify credentials: Use FINRA’s BrokerCheck to confirm if a professional is registered. But be wary, scams may often impersonate people, firms, and their credentials.
• Search for reviews: Search the name of the company or salesperson alongside words like “scam” or “complaint.”
• Check email addresses: Verify that you are communicating with a real email associated with a real advisor’s company. Remember that scammers may register email addresses that are slightly different or may change one letter from a legitimate domain.
• Look for spelling errors: Given that many scams sometimes originate overseas, ads and other communications may have spelling mistakes.  
• Consult with a trusted advisor: Before investing, consult a trusted legal professional or financial advisor who can advise you if the investment is proper.
• Follow warnings from current advisors: If your bank or investment/financial advisor cautions you about your new investment, take time to further investigate the new “investment opportunity” and do not simply dismiss their concerns.
• Trust your instincts and think twice before investing: If an investment seems fishy or too good to be true, it probably is.

3. Beware of "Deepfakes" and AI

Scam ads now use sophisticated technology to mimic real people in videos or livestreams.

• Spot the fake: If a video seems slightly off or the audio doesn’t perfectly match the lip movements, it may be a deepfake.
• Reverse search: If you see a video of a famous figure, search for the original footage online. Fraudsters often repurpose old interviews.
• Beware of financial advice: Famous figures do not usually provide financial advice online or advertise dealing in obscure cryptocurrency trading platforms. 

4. Protect Your Identity and Network

Your Facebook, Instagram, and WhatsApp profiles are gold mines for scammers looking to build a relationship with you.

• Lock down your profile: Change your settings to keep your friends list, photos, and posts private. This prevents scammers from seeing who you know.
• Verify friends: If a friend suddenly messages you about a "great investment opportunity," contact them outside of Facebook via phone call or text to ensure their account hasn't been hacked.
• Never share credentials: Do not provide login info, Social Security numbers, or financial details to anyone you met online. 
• Do not provide strangers access to your devices: Do not allow anyone you do not know well to access your computer or mobile phone remotely to help you with your existing investment account or open a new account. Often times, scammers will pose as a representative of the company you have an account with and ask for a password or answers to the security questions and — within seconds — empty everything in your account.

Anyone who may have fallen victim to these types of scams can report it to the California Department of Justice at oag.ca.gov/report.

 Californians, check out these tips to find safe, free, and low-cost ways to file your taxes 

OAKLAND — California Attorney General Rob Bonta today issued a consumer alert urging Californians to learn about free or low-cost tax filing options. As Tax Day approaches, many Californians may seek out assistance with filing their tax returns. Through the CalFile program, eligible California taxpayers can file their 2025 state taxes for free. 

“For Californians, Tax Day isn’t just a deadline, it is a reminder of how much hard work goes into every dollar earned and every dollar owed. What many Californians may not realize is that filing doesn’t have to come with additional costs. Too often, people pay for third-party tax preparation services without knowing they may qualify to file their taxes for free,” said Attorney General Bonta. “As Tax Day approaches, I encourage Californians to file early and explore trusted free or low-cost filing options. Before paying to file, take a moment to check if you qualify and keep more of your hard-earned money where it belongs — in your pocket.”

Franchise Tax Board’s (FTB) CalFile is California's free e-filing service for state tax returns. The CalFile program allows eligible taxpayers to file state tax returns quickly, securely, and free of charge. By removing barriers to filing, this program may allow consumers to get tax refunds and claim critical tax benefits like California’s Earned Income Tax Credit and Young Child Tax Credit.

MORE TAX PREPARATION RESOURCES:

• Code for America Tax File is a free tax filing service that offers virtual tax filing service that helps qualified individuals and families file their taxes online, maximize refunds, and access essential tax credits.
• The IRS Volunteer Income Tax Assistance program provides free tax help to people who make $64,000 or less annually, persons with disabilities, and people who do not understand English well.
• The Tax Counseling for the Elderly program offers free tax help for all taxpayers, particularly those over 60, specializing in questions about pensions and retirement-related issues. 
• More Cash in your Pocket: You may qualify for cash back or a reduction of the tax you owe under the Earned Income Tax Credit and the California Earned Income Tax Credit programs.
• Need more time to prepare? You can electronically request an automatic tax-filing extension, regardless of your income. You will then have until October 15 to file a return. More information on how to request an extension can be found on the IRS website.
• Find a Reputable Tax Preparer: If you decide to hire a tax preparer, make sure your tax preparer is reputable and qualified to provide tax services. In California, only an attorney, certified public accountant (CPA), IRS-enrolled agent, or registered-tax preparer can prepare tax returns for a fee. You can verify a CPA’s license with the California Board of Accountancy. You can also confirm whether a tax preparer is registered with the IRS.  

If you believe you have been the victim of a tax-related scam or other misconduct, you can file a complaint with our office at oag.ca.gov/report or with the IRS.

To learn about how to protect yourself and your loved ones against fraud, visit our website at oag.ca.gov/consumers/general/taxes.

OAKLAND — California Attorney General Rob Bonta today issued the following statement regarding the firing of Gail Slater, head of the U.S. Department of Justice Antitrust Division, an action that continues the Trump Administration’s relentless attacks on the federal watchdogs responsible for keeping life affordable for Americans:

“From President Trump’s efforts to dismantle the CFPB, to instituting tariffs that have raised prices on nearly everything, and now, firing the head of the federal DOJ’s antitrust office tasked with protecting fairness in the marketplace, it’s abundantly clear: The Trump Administration is more concerned with protecting corporate interests than making life affordable for American families. While our billionaire President may dismiss 'affordability' as a hoax, people across the nation are being forced to pay increasingly higher bills with increasingly emptier wallets. Allowing big corporations to raise prices and push competitors out of the marketplace with impunity will only worsen this crisis. While the federal government has abdicated its responsibility to look out for people’s economic wellbeing — in California, we never will. My office has led the nation in consumer protection and antitrust work for decades, and we will continue to do so. While President Trump is abandoning the economy that everyday Americans experience, we are standing up to tackle America's affordability crisis.”

Antitrust enforcement is an essential component of a healthy economy. Competitive marketplaces established through antitrust vigilance help consumers by ensuring fair prices for goods and services, an array of products to choose from, quality goods and services, and the steady introduction of innovative new products. As part of the Attorney General’s commitment to enforce antitrust laws, the California Department of Justice has launched an Antitrust Complaint Form for people to report anticompetitive conduct that potentially violates the antitrust laws.

If you see hawking — or suspicious ticket reselling — be a patriot and submit a complaint

OAKLAND — Ahead of Super Bowl LX, taking place in Santa Clara, California, California Attorney General Rob Bonta today issued a consumer alert warning football fans of counterfeit Super Bowl tickets and scammers. In today’s alert, Attorney General Bonta reminds Californians to exercise caution in their online transactions and provides tips to avoid falling victim to ticket scams. 

“We all enjoy going to live shows and games to see our favorite artists or sports teams, but unfortunately scammers prey on our excitement,” said Attorney General Bonta. “Today I remind Californians: If you see hawking — or suspicious ticket reselling — protect yourself by following the tips we provide. If you have fallen victim to a scam or suspect fraudulent activity, be a patriot and submit a complaint. You can file a report with my office at oag.ca.gov/report as well as the Better Business Bureau and the FBI’s Internet Complaint Center.” 

Protect Yourself from Ticket Scams: 

• Purchase tickets from authorized vendors: When possible, always purchase your tickets directly from official websites to confirm the ticket's authenticity.
• Know the refund policy: Before purchasing third-party resale tickets, look into the reseller’s refund policy and whether they offer a guarantee regarding the authenticity and timely arrival of the tickets.
• Protect your personal information: Never provide personal information, such as your Social Security number or bank account number to prevent financial loss and fraud.
• Verify the web address safety: Double-check the website URL by ensuring the link starts with “https://” and has a padlock icon to ensure your credit card and billing information remain safe.
• Do your research: Search for online reviews regarding the seller and any potential customer complaints for prior scams.
• Use secure payment methods: Consider using your credit card to ensure that you have an opportunity to dispute fraudulent charges. Avoid using instant payment platforms like Zelle, Venmo, and Cash App, or you could risk never getting your money back. Do not pay for tickets with gift cards, prepaid debit cards, wire transfers, or cryptocurrency. Demands for payment using those methods are a strong warning sign of a scam.
• Be wary of overly discounted tickets: Be extra cautious with low-priced and/or hard-to-get tickets. If the price seems too good to be true, it probably is. 

If consumers have fallen victim to a ticket scam, they can file a complaint with our office at oag.ca.gov/report. Consumers can also report the incident to the Better Business Bureau and the FBI’s Internet Complaint Center.

OAKLAND — California Attorney General Rob Bonta today issued a consumer alert following the Governor’s declaration of a state of emergency in response to increased risk of debris flow due to incoming rain and snow in areas affected by the Pack Fire in Mono County. The Pack Fire ignited on November 13 near Lake Crowley in the eastern Sierra Nevada, and was fully contained on December 3, destroying 30 residential and commercial structures and damaging six others. In today’s alert, Attorney General Bonta reminds all Californians that price gouging during a state of emergency is illegal under Penal Code Section 396. Californians who believe they have been the victim of price gouging should report it to their local authorities or to the Attorney General at oag.ca.gov/report. To view a list of all price gouging restrictions currently in effect as a result of proclamations by the Governor, please visit the Governor's Office of Emergency Services Price Gouging webpage. 

“As incoming precipitation and snowfall threatens to increase the risk of debris flow from the Pack Fire, I urge Californians who reside in Mono County to listen to communication from officials and keep safe. California’s price gouging law protects people impacted by an emergency from illegal price gouging on housing, gas, food, and other essential supplies,” said Attorney General Bonta. “If you see price gouging — or if you've been the victim of it — I encourage you to immediately file a complaint with my office online at oag.ca.gov/report or contact your local police department or sheriff’s office.” 

California law generally prohibits charging a price that exceeds, by more than 10%, the price a seller charged for an item before a state or local declaration of emergency. For items a seller only began selling after an emergency declaration, the law generally prohibits charging a price that exceeds the seller's cost of the item by more than 50%. This law applies to those who sell food, emergency supplies, medical supplies, building materials, and gasoline. The law also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations, and rental housing. Exceptions to this prohibition exist if, for example, the price of labor, goods, or materials has increased for the business.

Violations of the price gouging statute are misdemeanors that are subject to criminal prosecution that can result in imprisonment and/or a fine. They can also result in civil enforcement actions, including civil penalties of up to $2,500 per violation, injunctive relief, and restitution. The Attorney General and local district attorneys and city prosecutors can enforce the statute.

OAKLAND — California Attorney General Rob Bonta today issued a consumer alert reminding consumers and lenders that credit discrimination remains illegal, under both California law and federal law. In October, as part of the Trump Administration’s continued gutting of the Consumer Financial Protection Bureau (CFPB), the CFPB prematurely terminated the consent order that documented its settlement with Citibank for allegedly discriminating against Armenian-American credit card applicants in Southern California, sending a strong message of the Trump Administration’s abandonment of these critical protections for consumers. 

“Credit discrimination remains illegal in California and throughout the United States. The Trump Administration’s premature termination of the settlement with Citibank for discriminating against Armenian-American applicants in California is alarming and no doubt another sign of the Bureau abandoning its obligation to protect the American people from unfair treatment by big corporations,” said Attorney General Bonta. “This, however, is not a sign that no one is looking. Let me be very clear: I will use the force of my office against financial institutions that deny brighter financial futures to Californians on the basis of their sex, race, religion or any protected characteristics.”

What is Credit Discrimination?

Credit discrimination is when a lender makes a decision about offering or denying credit based on a person's race, color, religion, national origin, sex, marital status, age, military or veteran status, because they receive public assistance, or based on another impermissible basis. Credit discrimination can manifest in various ways, such as consumers being discouraged from applying for credit, being offered less favorable terms such as higher interest rates or higher fees, or being refused credit despite meeting requirements, because of the factors listed above. 

People use credit to take out student loans, open businesses, and buy cars and homes. Building credit helps consumers to build a better future for themselves and future generations. Credit discrimination prevents people from having access to these opportunities and can make credit more expensive.

The Legal Bits: Federal and State Laws Banning Credit Discrimination

Federal and state laws prohibit discrimination by banks, lenders, credit card companies, and other lenders and financial institutions. 

The federal Equal Credit Opportunity Act (ECOA) prohibits financial institutions from discriminating against individuals on the basis of race, color, religion, national origin, sex, gender, marital status, age, receipt of public assistance, and other protected characteristics in all aspects of credit transactions, including applications, approvals, and terms and conditions. (15 U.S.C. section 1691 et seq.)

Similarly, the California Unruh Civil Rights Act (Unruh Act) prohibits discrimination on the basis of race, color, religion, ancestry, national origin, disability, medical condition, age, marital status, sexual orientation, sex, gender, or gender identity, as well as other protected characteristics by any business providing services in the state. (See Cal. Civ. Code section 51 et seq.) In addition to prohibiting discrimination in credit transactions, the Unruh Act prohibits banks, lenders, credit card companies, financial institutions, and other businesses from discrimination in any and all services that the business may provide.

California law also offers specific protections against discrimination in lending for housing finance. Under the Fair Employment and Housing Act, any financial institution that provides financial assistance for the purchase, organization, or construction of any housing accommodation is prohibited from discriminating in the terms or conditions of financing on the basis of protected characteristics, including but not limited to race, color, religion, sex, gender identity or expression, sexual orientation, marital status, national origin, ancestry, familial status, disability, source of income, veteran or military status, and genetic information. (See Cal. Gov’t Code section 12955, subd. (e).) Likewise, California’s Holden Act provides similar protections against discriminatory practices in housing finance. (See Bus. & Prof. Code section 35800 et seq.). And California's Military and Veterans Code prohibits discriminatory practices targeting members of the armed forces. (See Cal. Mil. & Vet. Code section 394).

Report It!

People who believe that they have been denied services or discriminated against because of a protected characteristic, and whistleblowers with information regarding potential violations of state or federal fair lending laws, can file a complaint with:

• The California Attorney General’s Office: oag.ca.gov/report
• The California Civil Rights Department: calcivilrights.ca.gov
• The California Department of Financial Protection and Innovation:  dfpi.ca.gov/submit-a-complaint/

OAKLAND — California Attorney General Rob Bonta today issued a consumer alert reminding consumers, healthcare providers, and credit reporting agencies that in California it remains illegal for medical debt to appear on credit reports. Recently, the Trump Administration’s Consumer Financial Protection Bureau (CFPB) issued an interpretive rule claiming that federal law generally preempts state medical debt laws — it does not. 

“In California, it is illegal for medical debt to appear on your credit report. Medical debt — which the law generally defines as debt owed to a provider of medical services, products, or devices — is generally unforeseen; it is not a reliable predictor of credit risk and can make it harder for people who are already struggling to secure housing, a job, or a car to get to work," said Attorney General Bonta. "California banned medical debt from appearing on credit reports because we recognized this practice as harmful to struggling consumers and not helpful in determining creditworthiness. Let me be clear: This remains the law in California. I urge consumers to understand their rights and to regularly check their credit reports to ensure medical debt does not make an appearance. The California Department of Justice is committed to protecting and enforcing all of California's laws — including this one.”

California’s Law

Senate Bill 1061 (SB 1061), authored by Senator Monique Limón (D-Santa Barbara) and sponsored by Attorney General Bonta, went into effect on January 1, 2025, and protects consumers from having their credit ruined by medical debt appearing on credit reports. 

Nationally, medical debt continues to rise, creating significant barriers to employment, housing, and equitable access to healthcare. People with medical debt are more likely than those with student loans or credit card debt to report being denied a rental or mortgage, increasing their risk of homelessness or forcing them into substandard housing. Medical debt can hinder employment opportunities, as employers often rely on credit reports in hiring decisions, further complicating efforts to repay the debt. Many consumers also delay essential medical care due to financial burdens, which can result in worsening health conditions.  

Monitoring Your Credit Report 

The best way to ensure medical debt has not appeared on your credit report is by regularly checking your credit report for inaccuracies or changes. Consumers are entitled to one free credit report per year from each of the three national credit bureaus. Those bureaus are Equifax, Experian, and TransUnion. You have the option of requesting all three reports at once or staggering them. Checking your credit reports at least once a year is a good way to discover errors, like the inclusion of medical debt or even identity theft. These errors could raise your cost of credit or cut you off from credit. The sooner these errors are discovered, the easier they are to clear up.  

You can order your free annual credit reports through a toll-free phone number (1-877-322-8228), online, at www.annualcreditreport.com/cra/index.jsp, or by mailing the order form here to the following address: 

Annual Credit Report Request Service
P. O. Box 105281
Atlanta, GA 30348-5281

For more information on how to order, read, and correct your credit report, please visit here. 

If You Find Medical Debt on Your Credit Report 

If consumers find medical debt on their credit report, they should notify the medical provider’s office, debt holder, and credit agency to allow them an opportunity to quickly remove the information from their credit report. If the issue persists after providing notice to the medical provider, debt holder or credit bureau, consumers may consider consulting a private attorney or legal aid.

Consumers who find medical debt on their credit report can also file a complaint with the California Department of Justice at oag.ca.gov/report.

OAKLAND — In honor of Veterans Day, California Attorney General Rob Bonta issued a consumer alert warning veterans and their families to be aware of scams and fraud, including fraud perpetrated by predatory individuals or companies who exploit veterans seeking assistance accessing their benefits. Unaccredited claims representatives, sometimes referred to as “claim sharks,” often promise a faster claims process or guaranteed benefit increases. These individuals or companies are not accredited by the U.S. Department of Veterans Affairs (VA) and operate beyond the protections and oversight of official VA regulations and their claims system. In today’s alert, Attorney General Bonta provides tips and information to help veterans guard against scams.

“On Veterans Day, and on all days, we recognize the significant sacrifices and contributions of veterans. Honoring our heroes means keeping them safe, and as part of that commitment, today we raise awareness of predatory practices targeting veterans,” said Attorney General Bonta. “Whether a person claims to be from the VA, or an offer sounds too good to be true, I urge Californians to triple check every offer and seek assistance from reliable and accredited channels when in doubt. Our veterans deserve protection as strong as their service.”

Receiving Reliable Assistance 

California veterans requiring assistance with initial benefits claims can receive free support from their local county veteran service office or from another VA-accredited representative. Accredited representatives — including attorneys and claims agents certified by the U.S. Department of Veterans Affairs — have passed exams, undergone background checks, and completed ongoing training to ensure they can assist veterans. If they do not uphold legal standards when representing veterans, these professionals can face penalties, including losing their accreditation. By contrast, unaccredited claims representatives may provide substandard assistance and often charge high fees or may even be committing outright fraud.

Common Scams Targeting Veterans

Whether it is a scammer pretending to be from the VA, or using veterans service organization seals to gain your trust, protect yourself by staying up to date on common scams targeting veterans:

• Home Loan Scams: Be aware of scammers that — through phone calls or mailers — claim to be affiliated with the government, VA, or your mortgage servicer. These fraudsters may attempt to convince you to agree to loan modifications, refinance your home, or make payments to your loans via untraceable money orders or gift cards. Be cautious of any individual or lender that: contacts you and asks you to pay fees upfront before receiving any services; tells you to cancel your mortgage payment and resend the funds elsewhere; tells you to make payments to someone other than your current loan servicer; or pressures you to sign papers you haven’t had a chance to read thoroughly or that you don’t understand — including asking you to sign over the title of your property.
• Never give out personal information to a lender or servicer that contacts you out of the blue. If you are feeling unsure, hang up and call your loan servicer directly at the number that is listed on your mortgage statement. Report suspicious activity to the California Attorney General at oag.ca.gov/report and file a complaint with the Federal Trade Commission at reportfraud.ftc.gov.
• Identity Theft and Fraud: Some scammers will pretend to be from the Department of Defense, VA, or other official organizations to get your personal information so that they can commit identity theft or fraud. Before you provide any information, always make sure a request is coming from an official organization by doing a quick search on the internet. Never trust the contact information given by the person that is asking for your personal information, as scammers often give out fake contact information. Be wary of letters and emails that have misspellings, look unprofessional, or sends you to a non-government website for information or action, as these are almost always fake. Never give out your Social Security number to get military or veteran discounts. 
• In the event that your identity is stolen, put a fraud alert on your credit report by contacting the three main credit reporting agencies Equifax, Experian, and TransUnion, and consider requesting a credit freeze, which will make it difficult for identity thieves to open new accounts in your name. Report identity theft right away and get a recovery plan at identitytheft.gov. File a police report with your local sheriff or police department and keep a copy for your records.
• Pension Scams: Veterans 65 and over are targeted by financial advisers persuading them to buy costly annuities, transfer their assets into trusts, or to pay unnecessary fees for help with a veteran’s pension application. These advisers claim to help veterans qualify for Aid and Attendance or other veteran’s benefits but may cause them to lose eligibility or access to pension or health benefits. Only the VA can award benefits. If you are interested in Aid and Attendance benefits, get free help from your County Veterans Service Office here.
• Affinity Fraud: Some scammers pose as fellow veterans or service members in order to appear trustworthy. Companies may use military-sounding names, military or veterans service organization seals, or other patriotic symbols in order to gain your trust. They may also advertise in military newspapers or magazines, use pictures of service members, or hire salespeople with a military background. Don’t be pressured into buying anything before you have a chance to shop around and do your research.
• Predatory Schools: The GI Bill and other military education programs offer veterans and their families a chance to attend school and further their education. Predatory schools often use high-pressure sales calls to try to get servicemembers and veterans to sign up. Always ask for information about the programs such as graduation rates, job placement and graduate salary information; take as much time as you need when making a decision. If a school can’t provide this basic information, they could be hiding something. For information on California’s public universities and community colleges, go to www.universityofcalifornia.edu, www.calstate.edu, or www.cccco.edu.

If you believe you have been the victim or target of a scam, immediately contact your local police department and file a complaint with the Office of the Attorney General here. For additional information on scams that target veterans, visit our website here. 

California DOJ prepared to take action against those who exploit California tenants  

LOS ANGELES — California Attorney General Rob Bonta today held a press conference in Los Angeles to ask California tenants who have been harmed by their landlords to come forward with their experiences. This past June, Attorney General Bonta sued Mike Nijjar, one of California’s biggest landlords, and his family’s group of property management and real estate holding companies, for violating California laws that protect tenants. The California Department of Justice (California DOJ) would like to hear the stories of Californians who were harmed by Mr. Nijjar’s companies — or by any other landlord. While California DOJ does not represent individuals, your story may help us investigate or take other legal action to protect Californians. People who wish to share their stories can do so by submitting a report to oag.ca.gov/report. There is an option to make your report in Spanish to oag.ca.gov/reportar. 

“California tenants have the right to live in a safe house or apartment — no matter the language they speak or their immigration status or income level. As the People’s Attorney, it is my job to hold landlords accountable for violating tenant protection laws that keep tenants safe and housed,” said Attorney General Bonta. “This summer, my office filed a lawsuit alleging landlord Mike Nijjar and his companies exploited vulnerable families by subjecting tenants to unsafe housing conditions, including cockroach and rodent infestations, leaking roofs, and overflowing sewage, all while deceiving tenants about their rights to sue their landlord and demand repairs. If you or your family have experienced conditions like these, I want to know. Please reach out to my office by filing a report at oag.ca.gov/report. While my office cannot represent individual tenants, your stories help us in our prosecution of landlords who exploit California tenants.”

Mr. Nijjar and his companies own and manage over 22,000 rental housing units statewide, primarily in lower-income, Spanish-speaking neighborhoods. The management companies, formerly called PAMA Management and IE Rental Homes, go by the following names: 

• Legacy Management (in Los Angeles County and the Inland Empire)
• Regency Management (in metropolitan Los Angeles and the San Gabriel Valley)
• Bridge Management (in Antelope Valley and San Bernardino County)
• Hightower Management (in and near the City of San Bernardino)
• Pro Management (in San Bernardino and Riverside Counties)
• Equity Management (in and around Bakersfield, Stockton, Sacramento, and Fresno)
• Mobile Management (statewide) 

Attorney General Bonta’s lawsuit against Mr. Nijjar and his companies alleges that these companies subject tenants to unhealthy and unsafe conditions, in violation of tenant protection law. The lawsuit alleges that the Nijjar companies:

• Do not provide Spanish translations of their leases and other important documents to tenants, as required by state law, even when they conduct the leasing process in Spanish.
• Discriminate against applications with Section 8 vouchers by refusing to rent to them.
• Include deceptive lease terms in their leases.
• Unlawfully increased rent for many tenants.  

The main goal of the lawsuit against Mr. Nijjar and his companies is to ensure they provide safe living conditions for all their tenants and comply with the law. California DOJ recognizes it is important to preserve all existing housing options for lower-income Californians and is not seeking to remove tenants from their homes or force the sale of buildings to developers. The lawsuit seeks appropriate remedies under the law, including restitution to affected tenants and injunctive terms requiring the defendants to follow the law and improve conditions at their properties. 

To file a complaint and share your story with California DOJ, please visit oag.ca.gov/report.   

To learn more about your rights as a tenant, please visit here.   

Californians who are facing eviction or believe their landlord has violated their tenant rights should seek legal help immediately. If you cannot afford a lawyer, you may qualify for free or low-cost legal aid. To find a legal aid office near where you live, visit lawhelpca.org and click on the “Find Legal Help” tab. If you do not qualify for legal aid and need help finding a lawyer, visit the California State Bar webpage to find a local certified lawyer referral service, or visit the California Courts’ webpage for tenants facing evictions.

For graphics to use in your reporting, please see here for a map of some Nijjar properties. Please see here and here for a call to action in Spanish and English, respectively. 

Puede encontrar una copia de este comunicado de prensa en español aquí.

Consumers were deceived out of nearly $3 billion, settlement proposes $300 million  

OAKLAND — California Attorney General Rob Bonta today joined a coalition of 18 attorneys general in submitting an amicus brief opposing the approval of a proposed multi-district class action settlement with Capital One Bank on the grounds that the proposed $300 million settlement is not fair, reasonable, or adequate, and significantly less than the $3 billion consumers lost. Further, Capital One is taking the position that final approval of the settlement would prevent attorneys general nationwide from seeking just compensation for victims of the company’s scheme.

“Capital One has misled consumers through false marketing and a lack of transparency regarding its savings account system,” said Attorney General Bonta. “Given an opportunity to make loyal customers whole, Capital One is instead attempting to not only underpay those it has harmed, but maintain the deceptive, anti-consumer practices that prompted this lawsuit to begin with. As the People’s Attorney, I will not allow financial institutions to pull the wool over consumers’ wallets. I support my colleague, New York Attorney General Letitia James, who is taking further action to hold Capital One accountable. Her work must not be undermined by a toothless settlement in this case.”  

The class action alleges Capitol One bank marketed its “360 Savings” accounts as high interest but subsequently released the similarly named new “360 Performance Savings” accounts that offered interest rates as much as 14 times higher without disclosing to existing account holders that they could easily transfer their funds to the new high interest 360 Performance Savings accounts and receive the higher interest rates. This saved Capital One nearly $3 billion in interest. However, the proposed settlement only pays the victims $300 million. The proposed settlement also purports to pay out another $125 million in the form of raised interest rates for holders of old accounts; this payment is misleading, as these consumers would receive far more in interest if they simply switched to the 360 Performance Savings account. 

Worse, the settlement allows Capital One to continue its deceptive practices. 

Despite the hopelessly inadequate payment to its victims, Capital One also asserts that the approval of the settlement will preclude attorneys general from seeking meaningful compensation for the company’s victims. In fact, Capital One argues that a currently pending action by the New York Attorney General would be resolved by this settlement and that the Attorney General cannot achieve proper redress for the company’s victims.

In this amicus brief, Attorney General Bonta joins the attorneys general of New York, Arizona, Colorado, Connecticut, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, Ohio, Oregon, Rhode Island, and Washington.  

A copy of the brief can be found here.