Consumer Alerts

OAKLAND — California Attorney General Rob Bonta today issued a consumer alert following Governor Newsom’s declaration of a state of emergency in Kern County due to the Borel Fire. The Borel Fire began burning in the Sequoia National Forest last week and is one of several fires comprising the SQF Lightning Complex, which has burned close to 90,000 acres to date.

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 see here. 

“As the Borel Fire sweeps through Kern County communities, I want to issue another reminder: Price gouging during a state of emergency is illegal. Businesses and landlords cannot unlawfully raise the price of essential supplies, hotels, rental housing, and more,” said Attorney General Bonta.  “I urge all Californians to be prepared, keep safe, and understand that in California you have rights protecting you during an emergency.” 

California law generally prohibits charging a price that exceeds, by more than 10%, the price of an item before a state or local declaration of emergency. For any item 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, certain transportation services, 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. 

Violators of the price gouging statute are subject to criminal prosecution that can result in a one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General and local district attorneys can enforce the statute. 

For additional information, please see DOJ's FAQs on price gouging here.

OAKLAND — California Attorney General Rob Bonta today issued a consumer alert following Governor Newsom’s declaration of a state of emergency in Plumas County due to the Gold Complex Fire, and in Butte and Tehama Counties due to the Park Fire. The fires have together burned more than 181,000 acres, forcing the evacuation of thousands of residents, destroying homes, and threatening critical infrastructure.

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 see here. 

“As the Gold Complex and Park Fires force evacuations across Plumas, Butte, and Tehama Counties, I want to be very clear: Price gouging during a state of emergency is illegal. This means that businesses and landlords cannot unlawfully raise the price of essential supplies, hotels, rental housing, and more,” said Attorney General Bonta. “ I urge all Californians to listen to communication from officials, lend a helping hand where they can, and report price gouging when they see it.” 

California law generally prohibits charging a price that exceeds, by more than 10%, the price of an item before a state or local declaration of emergency. For any item 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, certain transportation services, 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. 

Violators of the price gouging statute are subject to criminal prosecution that can result in a one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General and local district attorneys can enforce the statute. 

For additional information, please see DOJ's FAQs on price gouging here.

OAKLAND — In recognition of Military Consumer Month, Attorney General Rob Bonta today issued a consumer alert to help protect California service members, veterans, and their family members from targeted common scams and fraud. Scammers often target the military community: According to the Federal Trade Commission, military consumers nationwide reported over 93,700 fraud complaints last year, including 42,766 imposter scams that reportedly cost them and their families over $178 million.

“Far too often, California service members and their families are targets for predatory scammers. Scams are varied and sophisticated, promising everything from home loans to jobs, and continuing education. I urge California’s military community to learn the scam warning signs, bring a buddy when engaging in major transactions, and take a tactical pause when an offer seems too good to be true,” said Attorney General Bonta. “As part of our commitment to protect those who protect us, my office will continue to bring the full force of the law against those who seek to exploit California’s military community. If you have fallen victim to a scam or suspect fraudulent activity, get help and share your story so that we can help your fellow service members. You can report fraud to your local military or civilian law enforcement agency, or to the California Department of Justice at oag.ca.gov/report.”

Why is the Military Community Targeted? 

Military service members, veterans, and their families are frequently targeted by scammers who want access to their pay and benefits, and who know that military members will often pay even fraudulent or over-stated debts to avoid security clearance issues or other disruptions to their military careers. In addition, the camaraderie that unites the military community is often exploited by impostors who claim to be veterans in attempts to perpetrate scams or access personal information for fraudulent purposes.   

Common Scams Targeting the Military Community:

Scammers use a variety of tactics to gain trust. Protect yourself by staying up to date on common military- and veteran-targeted scams. Beware of the following: 

• Charity Scams: Just because a charity includes the word “veteran” in its name doesn’t mean that veterans are members of the group, or that veterans or their families will benefit from a donation. Scammers will use names that sound legitimate or those that mimic the names of well-known charities to create confusion. Take the time to make an informed decision and be wary of aggressive solicitations. Go to oag.ca.gov/charities, under the Resources & Tools section, and click on Registry Verification Search. If a charity is not listed, it should not be soliciting funds in California. If it is listed, you can view its financial reports, including the IRS Form 990 that the charity is required to file with DOJ's Registry of Charitable Trusts.
• Predatory Schools: The GI Bill and other military education programs offer you the chance to attend school and plan for your future, but for-profit schools sometimes target service members and veterans with false promises. Slow down and take the time you need to make the right decision. Predatory schools often use high-pressure sales tactics to try to get you to sign up. It’s important to ask for information about the programs, such as graduation rates, job placement, and graduate salary information. Offers that seem too good to be true generally are. Further, don't forget that educational opportunities at the California Community Colleges, California State University, and University of California may be available to you. 
• Home Loan Scams: Be aware of scammers that — through phone calls or fraudulent mailers — claim to be affiliated with the government, the Department of Veterans Affairs, or your home loan servicer. These fraudsters may attempt to convince you to agree to loan modifications, refinance your home, or make payments on your loans. 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 to your property. 
• Identity Theft and Fraud: Some scammers will pretend to be from the Department of Defense, Department of Veterans Affairs, or other official organizations in order 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 or consulting a trusted source to get the organization’s real contact information. 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 send you to a non-government website for information or action, as these are almost always fake. Lastly, never give out your Social Security number to receive military or veteran discounts. Scammers often promise military or veteran discounts in order to obtain personal information. 
• Job Scams: Service members looking for new career opportunities after leaving service are a target for scammers posting fictitious job listings with the goal of stealing their personal information and finances. Avoid becoming a victim of job scams by conducting thorough research on the company. Additionally, stick to well-known job search platforms and government career websites when looking for job opportunities. Remember, legitimate employers will never require you to pay fees for applications, interviews, or background checks. You should also look out for fake check scams, which occur when a scammer posing as an employer sends you a counterfeit check to deposit into your account. The scammer will then ask you to send a portion of the funds back to them or a third party, while letting you keep some as payment. Eventually, the bank reverses the fake check, leaving you stuck paying the money back to the bank. If something feels off or suspicious during the job search, trust your instincts and end communication immediately.
• Pension Scams: Veterans ages 65 and over are targeted by scam financial advisers who try to persuade senior veterans to buy costly annuities or transfer their assets into trusts, or pay unnecessary and illegal fees for help with a veterans pension application. These "advisers" claim to help veterans qualify for Aid and Attendance or other veterans benefits, but may cause you to lose eligibility or access to pension, disability, or healthcare benefits. If you are interested in Aid and Attendance or other veterans benefits, you can get free help from your County Veterans Service Office here.
• Affinity Fraud: Affinity scams target members of identifiable groups, including the military. The perpetrators are — or pretend to be — members of the targeted group, and use sales pitches that rely on group trust and loyalty. In the military community, this includes exploiting the trust that service members have for their fellow service members, and for veterans who previously served. Don't make a significant purchase, or an investment decision, based on the salesperson's supposed military service, or the claim that a business is military-friendly or endorsed by the Armed Forces. Take a tactical pause, and shop around for the best deal.
• Debt Collection and Illegal Threats: Debt collectors may try to trick or scare service members into making payments on debts. It is illegal for debt collectors to do any of the following: revoke your security clearance; contact your command in order to collect a debt (unless they have your consent, given after the debt came due, to do so); discipline or demote you; or garnish your pay. If a debt collector is trying to collect a debt that you do not owe or have already paid, dispute the debt in writing. Tell the debt collector why you do not owe the debt, include copies of any evidence you have, and mail this dispute to the debt collector using registered mail so that you have proof that the collector received it — and make sure to keep copies of everything for yourself. If you dispute the debt within 30 days after the collector first contacted you, the collector must stop collection until it shows you written proof of the debt.
• Rental Housing Scams: These scams target military personnel looking for housing near a base, especially prevalent during the Permanent Change of Station season. Scammers pretend to be real estate agents and post fake ads for rental properties on websites, sometimes promising military discounts and other incentives in order to get service members to send them money for fees and deposits upfront. If someone insists on receiving money or other payments before a property has been seen, it is likely a rental scam. Avoid wiring money to reserve apartments, and use your installation housing office or established property management companies to locate potential housing. 
• Predatory Auto Sales and Financing: Car dealers located near military bases may try to lure service members with promises of special deals for military personnel. Often, these so-called deals conceal the terms of purchase for the vehicle and result in the service member drastically overpaying for both the vehicle and the cost of financing. For example, dealers may insist that military personnel will not qualify for financing unless they purchase overpriced and unnecessary add-ons. Other times, the dealer may tell a service member who just purchased a car that the initial financing fell through and insist on renegotiating for worse terms. You should not rely on oral promises, nor feel pressured to enter into any purchase, without first reading and understanding the contract. If you are looking to purchase a car, you should explore all of your options for financing — including by contacting your bank or credit union — before making a purchase. 

Protect Yourself from Scams:  

• Bring a battle buddy when making big decisions, and take a tactical pause: Take your time with big decisions and get advice.  A business that pressures you to make a quick decision or to not talk with your family, friends, a military financial counselor, or an officer or NCO that you trust may be out to scam you.
• Take advantage of free annual credit reports: You are entitled to one free credit report every year from each of the three national credit bureaus: Equifax, Experian and TransUnion. Your credit history contains information from financial institutions, utilities, landlords, insurers, and others. By checking your credit reports at least once a year, you can identify signs of identity theft, as well errors in your report that could be raising the cost of your credit. Order your free annual credit reports by phone, toll-free, at 1-877-322-8228, or online at www.annualcreditreport.com.
• Place a Fraud Alert: If your identity is stolen, put a fraud alert on your credit report by contacting the three main credit reporting agencies: Equifax, Experian, and TransUnion. Also, consider requesting a credit freeze, which will restrict access to your credit file, making 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. Additionally, file a police report with your local sheriff or police department and keep a copy for your records.
• Report Suspicious Activity: 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 Office of the Attorney General at oag.ca.gov/report and file a complaint with the FTC at reportfraud.ftc.gov.
• Protect your online information and accounts with strong passwords: Protect yourself by using different, unique passwords for each of your online accounts. Make sure that the passwords you use are at least eight characters, including a mix of letters, numbers, and symbols.
• Check your credit card bills and bank statements often: Look for unauthorized charges, withdrawals, or unexpected bills, and report irregular activity to your bank as soon as you see it. If you notice that a bill didn’t arrive on time, it may mean that someone has changed the contact information on your account in order to hide fraudulent charges. Don't share personal information: Be careful about what personal information you share, such as your address or financial information.
• Sign up for the Enhanced Homeowner Notification Program: If you reside in Los Angeles County, you may sign up to receive mailed copies of documents recorded against your home, allowing you to review recorded real estate documents so you are aware of actions taken against your property.

If you believe you have been the victim or target of a scam, immediately contact your local police department or reach out to your base legal office. For the legal office’s contact information, ask your command or visit to legalassistance.law.af.mil/. California National Guard personnel can also obtain legal help at calguard.ca.gov. You may also file a complaint with the Office of the Attorney General at oag.ca.gov/report. For additional information on military-targeted scams, visit our website at oag.ca.gov/consumers/general/military.

OAKLAND — California Attorney General Rob Bonta today issued a consumer alert following Governor Newsom’s declaration of a state of emergency for Butte County due to the Thompson Fire, which has burned 3,002 acres and forced the evacuation of thousands of residents. 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 see here. 

“As the Thompson Fire forces evacuations across Butte County, I ask Californians to listen to communication from officials, care for your neighbors, and keep safe,” said Attorney General Bonta. “As Californians flee their homes, I want to be very clear: Price gouging during a state of emergency is illegal. This means that businesses and landlords cannot unlawfully raise the price of essential supplies, hotels, rental housing, and more. I urge all Californians to heed evacuation orders, lend a helping hand where they can, and report price gouging when they see it.”

California law generally prohibits charging a price that exceeds, by more than 10%, the price of an item before a state or local declaration of emergency. For any item 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, certain transportation services, 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. 

Violators of the price gouging statute are subject to criminal prosecution that can result in a one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General and local district attorneys can enforce the statute. 

For additional information, please see DOJ's FAQs on price gouging here.

FasTrak does not request payment by text with a link to a website

OAKLAND — California Attorney General Rob Bonta today issued a consumer alert following an uptick in text-based scams claiming consumers owe express lane or toll charges and asking for online payment. Attorney General Bonta urges Californians to not click on links in texts appearing to alert consumers to overdue toll charges. FasTrak, the electronic toll collection system used statewide in California, does not request payment by text with a link to a website. Today’s consumer alert includes tips on how to identify and avoid toll charge scams, and what to do if you become a victim of this fraudulent activity.

“Scammers are often quite literally in our pockets, just a text away. Text-based toll charge scams are on the rise and knowing what to look for is an important way to keep consumers safe against these tactics,” said Attorney General Bonta. “I urge Californians to take practical steps to guard against being victimized by scammers, including talking to friends and family who may be unaware of these dangers.”

Often these types of scams involve a text that tells you to click a link to pay “overdue toll charges” to avoid late fees. This is most likely not the tolling agency, but a scammer. Clicking the link can lead to a phishing attack, where the scammer tries to take your personal information — and even steal your identity. And if you pay, not only are you out the money, but the scammer now has your credit card number, too. 

 How to Spot and Avoid Toll Scams:

• Slow down. Don’t rush to click on links or respond to the text. Scammers want you to react quickly when they send you an unexpected text message, but it’s best to stop and check it out.
• Check with the tolling agency. If you’re worried the text is not legit, check with the state’s tolling agency. But use a phone number or website you know is real to do so — not the info from the text.
• Report unwanted text messages. Use your phone’s “report junk” option to report these unwanted texts to your messaging app or forward them to 7726 (SPAM).
• Don’t engage. Delete the message. Unwanted messages often lead to scams. Once you’ve checked it out and reported it, delete the text message. And don’t engage.
• Share this information with people you know. Everyone can be prepared to spot and avoid the scam.

If You Receive a Toll Scam Text:

• Delete any scam texts received. 
• File a complaint. File a complaint with the FBI, the Federal Trade Commission, and our office. Be sure to include the phone number from where the text originated and the website listed within the text.
• Check your account using the toll service’s legitimate website. You can find Bay Area FasTrak’s official website here. If you are in Southern California, please see here. For a comprehensive list of all tolling agencies in California, please see here. 
• Contact the toll service’s customer service phone number. You can reach FasTrak customer service at 877-229-8655. Alert the toll service to your experience. 
• Secure your personal information and financial accounts. If you clicked any link or provided your information, take efforts to secure your personal information and financial accounts. Dispute any unfamiliar charges.

For more information on scams, visit here. To report a text-based scam to the Attorney General, visit oag.ca.gov/contact/general-contact-form.

FTC order is legal and necessary 

OAKLAND — California Attorney General Rob Bonta today joined 22 attorneys general in filing an amicus brief in support of the Federal Trade Commission's (FTC) cease-and-desist order against Intuit, maker of TurboTax. The FTC found that Intuit deceptively advertised supposedly “free” tax-filing products and ordered Intuit to cease all deceptive activity and make disclosures to cure the claims in its advertisements. In 2022, California, as part of a coalition of 51 attorneys general, announced a $141 million nationwide settlement against Intuit involving similar findings of illegal deceptive advertising. In their brief, the attorneys general argue that the FTC's order is lawful, supported by ample evidence, and complementary to — rather than duplicative of — states’ prior settlement against Intuit.

“Every tax season, hardworking Californians put their trust in online tax filing services like TurboTax, which promise to find taxpayers the best deals,” said Attorney General Bonta. “FTC’s investigation, like our 2022 multistate investigation, found that Intuit repeatedly and deliberately broke that promise. I support FTC's parallel enforcement authority — protecting consumers from deceptive business schemes requires everyone at the table, both states and the federal government." 

In 2022, the FTC brought an administrative complaint against Intuit for deceptively advertising its seemingly “free” TurboTax products, which were not actually free for most users. Intuit’s advertisements consistently conveyed to consumers that they could file a tax return with TurboTax for free, and disclaimers on these advertisements were insufficient to counteract this message. Many consumers did not realize that TurboTax would not allow them to file their tax return for free until after they had invested significant time and shared sensitive personal and financial information with TurboTax.  

In the amicus brief, the attorneys general argue that the FTC’s cease-and-desist order against Intuit rightly concluded — consistent with states’ prior investigation — that Intuit engaged in illegal misconduct by depicting TurboTax as free, even though it was not free for most consumers; the order is entirely consistent with longstanding principles of both state and federal consumer protection law; and the order furthers the dual role that states and the federal government play in policing unscrupulous businesses and protecting consumers nationwide.  

The FTC allegations parallel the findings of a multistate investigation of Intuit that settled in May 2022. Attorney General Bonta, as part of a coalition of 51 attorneys general and with the Los Angeles City Attorney and Santa Clara County Counsel, announced a $141 million settlement against Intuit, resolving allegations that the California-based company deceptively advertised its “free” online TurboTax products. Although 70% of taxpayers qualified for the “IRS Free File Program,” operated by Intuit and others, less than 3% of taxpayers used it to file their returns in 2020. This abysmal rate was due in part to tricks and tactics used by Intuit to steer taxpayers away from the IRS Free File Program and toward Intuit’s paid commercial products. The multistate settlement included strong injunctive terms and $141 million in direct consumer restitution, $11.4 million of which went to approximately 370,000 Californians who were eligible for a free tax filing program and were instead deceived into paying to file their federal tax return. 

IRS Free File and Direct File

IRS Free File lets qualified taxpayers prepare and file federal income tax returns online using guided tax preparation software. In May 2024, the IRS made Direct File, a program in which taxpayers can file their federal taxes directly with the IRS for free, a permanent option for filing tax returns, and announced plans for expanding access to more taxpayers for the 2025 filing season. During the 2024 filing season, Direct File saved some 140,000 taxpayers an estimated $5.6 million in filing costs, according to the Department of the Treasury.

Attorney General Bonta is committed to standing up for Californians’ financial protection and their right to file taxes safely. Last month, Attorney General Bonta announced a settlement with Liberty Tax for running deceptive advertisements that misled consumers into thinking they were getting a free advance on their tax refund when they were actually taking out a high-cost loan. In March, Attorney General Bonta issued a consumer alert with tips on preparing taxes safely, and advised Californians to file early, take actions to protect themselves online, and learn about free or low-cost tax filing opportunities.

In submitting the amicus brief, Attorney General Bonta joins the attorneys general of the District of Columbia, Illinois, Arizona, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Washington, and Wisconsin.

A copy of the letter can be found here.

OAKLAND — California Attorney General Rob Bonta today issued a consumer alert warning Californians to beware of scams that use artificial intelligence (AI) or “deepfakes” to impersonate government officials, distressed family members, or other trusted figures.

“Scammers are often quite literally in our pockets, just a phone call, social media message, or text away,” said Attorney General Bonta. “AI and other novel and evolving technologies can make scams harder to spot. Knowing what to look for is an important way to keep consumers safe against these tactics. I urge Californians to take practical steps to guard against being victimized by scammers, including talking to friends and family who may be unaware of these dangers.”

New technology – such as AI and deep fake video or voice manipulation – makes it easier for scammers to create sophisticated impersonations and to make more convincing requests for money or personal information. Scammers can use information available on the internet, including images and audio from social media, to convince people that the voice on the other end of the call is someone they can trust. Bad actors can clone a person’s voice through AI technology using clips of audio taken from that person’s social media account(s) and can refer to personal information about the victim found on the internet, making the scam appear credible.

For example, a troubling new scam targets parents by sending them AI voice impersonations of their child begging for help. Recent reports have included parents receiving a phone call using the cloned voice of their child claiming to have been badly injured in a car accident or in need of money to pay bail. Grandparents are often the target of scams claiming that their grandchild is in trouble and in need of money. In 2023, the FBI received victim complaints regarding grandparent scams that resulted in nearly $1.9 million in losses. 

Scammers often target consumers on their phones. In 2023, robocalls and robotexts resulted in more than $1.2 billion in reported losses nationwide. And most other methods of contact by scammers – including email, social media, and the internet – are also accessible by smartphones. These phone-based scams are designed to steal money, identities, or passwords, or urgently demand payment through cash or gift cards. Scams can result in significant financial losses, ruined credit scores, and impacted security clearance for service members and others. 

While younger adults reported losing money to fraud more often in 2023 than older adults, older adults who lose money tend to lose larger amounts.

Imposter scams were the most commonly reported fraud in 2023. These imposter scams often involve a bad actor pretending to be a bank’s fraud department, the government, a well-known business, a technical support expert, or a distressed relative, such as a kidnapped child. Other common phone-based scams include calls related to medical needs and prescriptions, debt reduction, utilities, bank fraud warnings, warranties, or IRS notices.

These scams can also spread misinformation about elections or political candidates. For example, in January residents of New Hampshire received scam election robocalls that allegedly used AI to impersonate the president and discourage voters from participating in the New Hampshire primary.

Protect Yourself and Others from Phone-Based Scams

Here are some tips to protect you and those you know from phone-based scams.

• Develop family code words: Develop simple ways of verifying if a family member truly is in trouble before responding to phone calls for financial help or sharing personal information. Talk with family about designating “safe words” or asking a question that only that person would know the answer to. When creating a question, be mindful that scammers might have access to information from social media and other online sources.
• Minimize personal audio/video content on social media accounts: Consider removing personal phone numbers and audio and video clips from your and your children’s social media profiles. AI scammers can use these clips to create clone voices and videos of loved ones.
• Check privacy settings: Strengthen privacy settings on social media so that strangers don’t know facts about your life and your current whereabouts, including whether you or a family member is out of town.
• Don’t answer the phone: Let phone calls from unfamiliar numbers go to voicemail. They often are illegal robocalls.
• Don’t trust caller ID: Phone numbers can be “spoofed” to look like a familiar number from friends, family, a school district, or a government agency. Don’t assume the caller ID is accurate and be wary if anything seems different about the caller or if they ask for financial or personal information.
• Hang up the phone: If you suspect a scam call, immediately hang up. Don’t automatically trust automated messages: often pressing “1” to indicate you don’t want to receive future calls just notifies bad actors that they should continue calling this active phone number.
• Take advantage of call-blocking technology: Many cellular providers offer enhanced call-blocking technology that can assist in preventing robocalls from reaching you.
• Don’t click on suspicious links: Scammers will try to get you to click on links that are sent to you in texts, emails, or social media. Text messaging is particularly dangerous because you might hurriedly click on a link and begin entering a password, not realizing that the link is phony, and your password is being recorded.
• Go directly to websites: Go directly to the website of a company you are familiar with rather than clicking on a link that has been sent to you. Some fraudulent links are made to look very similar to the actual website address. You should never click on links that are texted to you – for example, by what seems like a bank. Instead, go to the bank’s website on your own internet browser.
• Use strong passwords: Protect yourself by using different, unique passwords for each of your online accounts. Make sure that the passwords you use are at least eight characters, including a mix of letters, numbers, and symbols. Consider using a password manager to provide suggestions and store strong passwords.
• Protect your Social Security number (SSN) and other sensitive information: Keep your Social Security card at home in a safe place instead of carrying it around in your wallet. Only provide your SSN when absolutely necessary, such as on tax forms or employment records. If a business asks you for your SSN, see if there is another number that can be used instead.
• Beware of government impersonations and other common scams: Some scammers are sophisticated. They may offer to provide “documentation” or “evidence,” or use the name of a real government official or agency to make you think that their calls are legitimate. If a government agency calls you and asks for financial or personal information, hang up and go to the agency’s official website (which should be a .gov website) and call them directly. Government officials will not threaten you with arrest or legal action in exchange for immediate payment. They will not promise to increase your benefits or resolve an issue in exchange for a fee or transfer of funds to a protected account. And they will not ask for payment in the form of gift cards, prepaid debit cards, wire transfer, internet currency, or by mailing cash.

Attorney General Bonta is committed to protecting Californians by cracking down on robocalls, including AI-generated robocalls and robotexts.

In January, Attorney General Bonta called on the FCC to address the threat of AI-generated robocalls, and the FCC subsequently declared voice-cloning technology used in common robocall scams illegal under the Telephone Consumer Protection Act. In February, Attorney General Bonta joined a coalition of 51 bipartisan attorneys general in issuing a warning letter to a company that allegedly sent New Hampshire residents scam election robocalls during the New Hampshire primary election. The calls allegedly used AI to impersonate the president and discourage voters from participating in the primary. 

In May 2023, Attorney General Bonta, as part of a bipartisan coalition of 49 attorneys general, announced a lawsuit against Avid Telecom for allegedly initiating and facilitating billions of unlawful robocalls that included Social Security Administration scams, Medicare scams, and employment scams. In January 2022, as part of a bipartisan multistate coalition, Attorney General Bonta urged the FCC to stop the flood of illegal foreign-based robocalls that “spoof” U.S. phone numbers. In August 2022, Attorney General Bonta announced the launch of a bipartisan nationwide Anti-Robocall Litigation Task Force to investigate and take legal action against the telecommunications companies responsible for bringing a majority of foreign robocalls into the U.S.

For more information and resources on phone-based scams, visit our website at oag.ca.gov/consumers. 

OAKLAND — California Attorney General Rob Bonta today filed an amicus brief in Rosenberg-Wohl v. State Farm Fire and Casualty Co. (State Farm), a case that hinges on whether an Unfair Competition Law (UCL) action filed by a policyholder against their insurance company is subject to the UCL's four-year statute of limitations or the Insurance Code’s one-year limitations period for actions to recover on an insurance policy. The brief, filed in the California Supreme Court, argues that a UCL action is distinct from an action to recover policy benefits, therefore an insurance policy claims period cannot override the four-year statute of limitations that applies to all UCL actions. A contrary decision would hinder consumers’ ability to challenge unlawful, unfair, or fraudulent conduct by insurance companies. 

“We must protect consumers’ right to challenge abusive business practices by insurance companies,” said Attorney General Bonta. “California's Unfair Competition Law protects all 39 million Californians from unlawful, unfair, and fraudulent business practices by any industry, including insurance companies. The lower court got it wrong and if allowed to stand the decision threatens to undermine the broad protections afforded to Californians under the Unfair Competition Law. I urge the California Supreme Court to overturn the erroneous decision.”

California’s UCL prohibits businesses in California from engaging in illegal, unfair, or fraudulent practices in any aspect of their business, and allows California consumers injured by those practices to go to court to protect their rights. The UCL can also be enforced by the Attorney General and district attorneys, as well as by some city attorneys and county counsels.  

The plaintiff in this case filed an insurance claim under their homeowners’ insurance policy with State Farm, which the insurer denied. Roughly a year and a half later, the plaintiff filed a lawsuit against State Farm, alleging that it violated the UCL by engaging in unfair and misleading practices that included failing to properly investigate property insurance claims and failing to provide explanations for claim denials. The plaintiff sought injunctive relief that would require the company to reform its marketing practices and its process for investigating and resolving certain home-insurance claims. The Court of Appeal upheld the dismissal of the plaintiff’s action as untimely, holding that the plaintiff’s UCL claims were subject to the contractual one-year limitations period rather than the UCL’s four-year statute of limitations because they arose from parties’ contractual relationship.

In today’s brief Attorney General Bonta argues that the one-year limitations period set forth in the Insurance Code does not apply to a UCL action, regardless of whether the action relates to an insurance claim. The brief also notes that the Court of Appeal's decision departs from long-standing Supreme Court precedent holding that the UCL’s statute of limitations “admits no exceptions.” 

Attorney General Bonta is committed to upholding Californians’ protections under the UCL:

• In February, Attorney General Bonta sent a letter small banks and credit unions warning that overdraft and returned deposited item fees may violate state and federal consumer protection laws, and urged small financial institutions to eliminate these fees.

• Also in February, Attorney General Bonta filed an amicus brief in Capito v. San Jose Healthcare System, LP, urging the court to clarify when consumers can sue businesses for engaging in fraudulent acts or practices, and to adopt a standard for unfair acts or practices in UCL cases.

• In January 2023, Attorney General Bonta announced a lawsuit against the nation's largest insulin makers and pharmacy benefit managers for driving up the cost of the lifesaving drug through unlawful, unfair, and deceptive business practices in violation of California's consumer protection laws.

•  In September 2022, Attorney General Rob Bonta announced a lawsuit against Amazon alleging that the company stifled competition and caused increased prices across California through anticompetitive contracting practices in violation of California’s consumer protection and antitrust laws.

A copy of the amicus brief can be found here.

In 2022, consumers paid over $7.7 billion in overdraft fees

OAKLAND — California Attorney General Rob Bonta joined 17 attorneys general in submitting a comment letter supporting the Consumer Financial Protection Bureau’s (CFPB) proposed overdraft fee rule, amending Truth in Lending Act (TILA) regulations. The proposed rule would require large banks to apply consumer protections, include interest rate disclosures, to overdraft fees. In doing so, the proposed rule would close a regulatory loophole that enables banks to extract billions of dollars from consumers by charging overdraft fees without adequately disclosing basic credit terms.

“Overdraft fees are a relic and should be left in the past. These fees harm low-income Californians the most, while lining the pockets of large financial institutions,” said Attorney General Bonta. “The Consumer Financial Protection Bureau's proposed rule would protect consumers' pocketbooks and create more transparency about how overdraft fees are handled in the places where they bank. By closing this archaic loophole, we work toward a California where consumers are treated more equitably and fairly by financial institutions.”

TILA was enacted in 1968 when many families used the mail to send and receive checks and had little certainty about when their deposits and withdrawals would clear. When a bank clears a check and the consumer doesn’t have funds in the account, the bank charges an overdraft fee and in doing so is issuing a loan to cover the difference. The Federal Reserve Board created an exemption to TILA protections if the bank was honoring a check when their depositor inadvertently overdrew their account. At the time, this was used infrequently and resulted in a small cost for consumers. It was not a major profit driver.

This exception no longer serves its original purpose given the automation of overdraft pay, prevalence of debit card transactions as an alternative to checks, and drastically increased amount of overdraft fees. Approximately 23 million households pay overdraft fees in any given year. Banks usually charge $35 for an overdraft, most of which are repaid within three days—representing an annual percentage rate (APR) of approximately 17,000%. An APR is the yearly rate charged for a loan or earned by an investment and includes interest and fees. Typically, personal loan APRs are from 6% to 36%. In 2022, consumers paid over $7.7 billion in overdraft and non sufficient fund fees.

In the letter, the attorneys general endorse the proposed rule and request that the CFPB set the benchmark overdraft fee at $3, which would not trigger TILA disclosures and reduce overdraft fees for consumers. The attorneys general also urge the CFPB to consider expanding the proposed rule to small financial institutions given that many are among the most frequent chargers of costly overdraft fees.

In submitting the letter, Attorney General Bonta joins the attorneys general of New York, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, North Carolina, Oregon, Pennsylvania, Washington, and the District of Columbia.

Attorney General Bonta is committed to protecting consumers from hidden fees, and ensuring consumer financial protection though enforcement action, consumer outreach, and sponsoring legislation. 

• Earlier this month, Attorney General Bonta issued a consumer alert with tips on filing and preparing taxes safely. 
• Also this month, Attorney General Bonta joined Senator Monique Limón (D- Santa Barbara) and a coalition of prominent consumer advocacy organizations in unveiling Senate Bill 1061, legislation seeking to protect consumers from having their credit ruined by prohibiting medical debt from being reported on credit reports.
• In February, Attorney General Bonta sent a letter small banks and credit unions warning that overdraft and returned deposited item fees may violate California’s Unfair Competition Law and the federal Consumer Financial Protection Act, and urged small financial institutions to eliminate these fees. 
• Also in February, Attorney General Bonta supported the Federal Trade Commission’s new “Rule on Unfair or Deceptive Fees,” which would ban hidden fees nationwide.
• Last year, Attorney General Bonta and the California Low-Income Consumer Coalition co-sponsored Senate Bill 478 (SB 478), which combats hidden fees by requiring the advertised, displayed, or offered price of goods or services to include all mandatory fees, other than tax and shipping. SB 478 was signed by Governor Newsom in October and will take effect on July 1, 2024.

A copy of the letter is available here.

OAKLAND — California Attorney General Rob Bonta today issued a consumer alert with tips on filing and preparing taxes safely. As Tax Day approaches, many Californians may seek out assistance with filing their state and federal tax returns. To avoid falling victim to a tax-related scam, Attorney General Bonta advises Californians to file early, take actions to protect themselves online, and learn about free or low-cost tax filing opportunities. Through the IRS Direct File pilot program, eligible California taxpayers can file their 2023 federal taxes directly with the IRS for free.

“For working families, tax season serves as a long-awaited opportunity to get ahead on bills, make needed home repairs, or finally start planning a vacation,” said Attorney General Bonta. “This Tax Season, we want to make sure Californians don’t fall victim to tax-related fraud or scams. I encourage Californians to review our website for tools, tips, and resources to make filing taxes easier and safer at oag.ca.gov/consumers. And if you believe you are the victim of a tax-related scam, report it at oag.ca.gov/report.”

How to Protect Yourself from Tax Scams:

• File early — You are less vulnerable to scammers if you file early and have your refund in hand. Avoid putting yourself at risk of being the next victim and file your taxes as early as possible. 

• Hang up the phone! — IRS and FTB will only call a person who owes taxes if they have tried to contact you by mail. Legitimate IRS and FTB agents will not threaten jail time or seek payment over the phone or through a wire transfer. Consumers should not make any payments and should contact the agency directly by looking up government contact information online. Calls impersonating the IRS should be reported to the Treasury Inspector General for Tax Administration (TIGTA). Those impersonating the FTB should be reported here.  

• Do NOT open the email — Never open an email or text message that says it is from the IRS or the FTB. The IRS and FTB do not use email, text message, or social media to request personal or financial information or to send notice regarding audits or refunds. Replying to the email, opening attachments, or clicking on links may enable scammers to collect your personal information or infect your computer with viruses or other malware.

• Think beyond the password — For greater security, get an Identity Protection PIN (IP PIN) for your e-filing account with the IRS. A new PIN is provided each year by the IRS. 

• Use two-step authentication — Check on the availability of two-step authentication to protect your tax filing accounts (and other online accounts containing sensitive information, such as your email and social media accounts). Two-step authentication adds a second factor, such as a one-time use code that is sent to you by email, phone, or text. You enter that code, along with your username and password, to get access to your account.

Tax Preparation Resources:

You may qualify for free help! Many consumers turn to third-party tax preparation services for help filing their tax returns. Attorney General Bonta encourages consumers to find out if they qualify for free tax help.

• IRS Direct File pilot program — Using the first-of-its-kind pilot program, eligible California taxpayers can file their 2023 federal taxes directly with the IRS for free. To see if you qualify for this program, check here.

• FTB CalFile — The FTB’s CalFile program allows qualified individuals to quickly e-file their state tax return directly to the FTB, free of charge. To see if you qualify, check here.  

• VITA/TCE — 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 information on these programs is available here.

Quick Tip! 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. Check to see if you qualify for one or both!

Need more time to prepare? You can also use IRS Free File to 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. 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. To confirm whether a tax preparer is registered with the IRS, check here. 

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.