Consumer Protection

LOS ANGELES – Attorney General Kamala D. Harris, along with the U.S. Department of Justice and state partners, today announced a settlement with Citigroup Inc. to resolve federal and state civil claims related to Citigroup’s conduct in the packaging, securitization, marketing, sale, and issuance of residential mortgage-backed securities prior to January 1, 2009.

Nationally, the settlement totals $7 billion. California will recover $102,700,000 in damages, which will reimburse the state’s pension funds, CalPERS and CalSTRS, for losses on investments in mortgage-backed securities of Citigroup and its affiliates. California is also guaranteed at least $90 million in consumer relief.

“Citigroup misled consumers and profited by providing California’s pension funds with incomplete information about mortgage investments,” Attorney General Harris said. “This settlement holds Citi accountable and compensates the state’s pension funds that protect the retirement savings of hardworking Californians.”

As part of the settlement, Citigroup acknowledged it made serious misrepresentations to the public, including investors, about the mortgage loans it securitized in residential mortgage-backed securities. The resolution also requires Citigroup to provide relief to underwater homeowners, distressed borrowers, and affected communities through a variety of means including financing affordable rental housing developments for low-income families in high-cost areas. The settlement does not absolve Citigroup or its employees from facing any possible criminal charges.

An investigation conducted by Attorney General Harris showed that offering documents for the securities failed to accurately disclose the true characteristics of many of the underlying mortgages, and that due diligence to weed out poor quality loans had not been adequately performed.

As part of the settlement, Citigroup will provide $2.5 billion in relief to aid consumers across the country, including Californians, in the form of principal forgiveness, loan modifications, donations to housing and legal assistance nonprofits and efforts to reduce blight. $4.5 billion will be paid to settle federal and state civil claims.

The settlement related to California’s pension funds arises from the investigation into mortgage-backed securities by Attorney General Harris's Mortgage Fraud Strike Force, which was formed in May 2011 to comprehensively investigate misconduct in the mortgage industry. The Attorney General's additional efforts to investigate the mortgage crisis include securing an estimated $20 billion for California in the National Mortgage Settlement and sponsoring the California Homeowner Bill of Rights, a package of laws instituting permanent mortgage-related reforms.

In November of last year, Attorney General Harris announced a $300 million settlement with J.P. Morgan Chase & Co. over its misrepresentations in residential mortgage-backed securities sold to CalPERS and CalSTRS.

For more information on the U.S. DOJ settlement visit: http://www.justice.gov/

SAN FRANCISCO -- Attorney General Kamala D. Harris and Sonoma County District Attorney Jill Ravitch today announced that defendant Aldo Joseph Baccala, who ran a Ponzi scheme that defrauded victims more than $17 million, was sentenced to 20 years in state prison and ordered to pay a fine of $6.4 million at a hearing today in Sonoma County.

“This fraudulent investment scheme cheated dozens of elderly investors out of millions of their hard-earned dollars,” Attorney General Harris said. “The dedicated investigators in our Financial Fraud Section, along with our local partners, will continue to protect California’s investors and consumers by bringing perpetrators like him to justice.”

“Along with the Attorney General’s Office, our office expended incredible resources in order to bring this scam artist to justice,” District Attorney Jill Ravitch said. “The scale and scope of this man’s fraud on unsuspecting investors is staggering. That so many of his victims lost their livelihoods, their homes and their retirement savings, to this man’s scheming and greed is beyond tragic. This was not just a fraud he perpetrated, but a crime against their futures and the emotional toll is incalculable. Thus, we believed his loss of liberty should be in proportion to their loss.”

Baccala was arrested in June of 2012 and charged with grand theft, securities fraud and elder abuse. On March 12 of this year, Baccala entered no contest pleas to 140 counts and admitted to excessive taking and white collar enhancements. The case was jointly prosecuted by both the Attorney General’s Financial Fraud and Special Prosecutions Section and the Sonoma County District Attorney’s Office.

Baccala used his Petaluma-based company, Baccala Realty, Inc., to solicit funds from victims, urging them to invest in ventures in California and other states, such as assisted living facilities, a car wash and other businesses with a promise of a return of monthly payments at an annual rate of 12 percent. He issued promissory notes stating the investments were either secured with real property or were designated for a particular use.

Many victims of the Ponzi scheme were elderly and had known Baccala and his family for many years.

Though he solicited investments in more than 100 notes between 2004 and 2008, Baccala did not own the facilities and his company could not provide any kind of return for those who purchased the promissory notes. Instead, Baccala used the solicited money for his own personal, unsuccessful stock market bets. His company eventually lost over $7 million and, when it collapsed, it had almost $17 million in promissory notes outstanding.

Consumers should exercise caution with investments that seem too good to be true and contain promises that cannot be verified or authenticated. Consumers may report suspected fraud or elder abuse to the Attorney General’s Office here: https://oag.ca.gov/bmfea/reporting.

SAN FRANCISCO – Attorney General Kamala D. Harris today announced a $550 million joint state-federal settlement with mortgage lender and servicer SunTrust Mortgage Inc. to address mortgage origination, servicing, and foreclosure abuses.

The three-year settlement provides direct payments to California borrowers for past foreclosure abuses, loan modifications and other relief for borrowers in need of assistance, and tough new mortgage servicing standards, and grants oversight authority to an independent monitor.

“We are recovering from the foreclosure crisis in California, but for too many families the legacy created by this crisis has been an enduring struggle to stay in their homes,” Attorney General Harris said.  “This settlement will help California’s homeowners with Sun Trust mortgages get loan modifications and work to regain their financial footing.”

The settlement includes California and 48 other states, the District of Columbia, the U.S. Department of Justice (DOJ), the U.S. Department of Housing and Urban Development (HUD), and the Consumer Financial Protection Bureau (CFPB).

Today’s agreement requires SunTrust to provide all borrowers nationwide with $500 million worth of loan modifications and other relief. SunTrust may fulfill its obligations in many ways, including principal reductions and refinancing for underwater mortgages. Because SunTrust receives only partial settlement credit for many types of loan modifications, the settlement will provide relief to borrowers that will exceed the overall minimum amount.

More information about the loan modification process will be released at a later date, though current borrowers with loans serviced by SunTrust can contact the company directly with questions at 1-800-634-7928.

Approximately 4,733 Eligible California borrowers whose loans were serviced by SunTrust and who lost their home to foreclosure from January 1, 2008 through December 31, 2013 and encountered servicing abuse will be eligible for a payment from the national $40 million fund for payments to borrowers. The borrower payment amount will depend on how many borrowers file claims.

Eligible borrowers will be contacted by the settlement administrator about how to qualify for payments.

The settlement requires SunTrust to substantially change how it services mortgage loans, handles foreclosures, and ensures the accuracy of information provided in federal bankruptcy court. The terms will prevent past foreclosure abuses, such as robo-signing, improper documentation and lost paperwork.

The settlement creates dozens of new consumer protections and standards, including:

• Making foreclosure a last resort by first requiring SunTrust to evaluate homeowners for other loss mitigation options;
• Restricting foreclosure while the homeowner is being considered for a loan modification;
• New procedures and timelines for reviewing loan modification applications;
• Giving homeowners the right to appeal denials;
• Requiring a single point of contact for borrowers seeking information about their loans and maintaining adequate staff to handle calls.

The agreement resolves potential violations of civil law based on SunTrust’s deficient mortgage loan origination and servicing activities.  The agreement does not prevent state or federal authorities from pursuing criminal enforcement actions related to this or other conduct by SunTrust, or from punishing wrongful securitization conduct that is the focus of the Residential Mortgage-Backed Securities Working Group.  Additionally, the agreement does not prevent any action by individual borrowers who wish to bring their own lawsuits.

The agreement will be filed as a consent judgment in the U.S. District Court for the District of Columbia.

SunTrust, headquartered in Richmond, Virginia, is a wholly-owned subsidiary of SunTrust Banks Inc., a bank and financial services company headquartered in Atlanta, Georgia.

The agreement’s mortgage servicing terms largely mirrors the 2012 National Mortgage Settlement (NMS) reached in February 2012 between the federal government, 49 state attorneys general, including California, and the five largest national mortgage servicers. That agreement has provided consumers in California with over $20 billion in relief, created tough new servicing standards, and implemented independent oversight.

Following the settlement, Attorney General Harris sponsored the California Homeowner Bill of Rights, a landmark package of legislation that restricts dual-track foreclosures, guarantees struggling homeowners a reliable point of contact at their lender and imposes civil penalties on fraudulently signed mortgage documents. In addition, homeowners may require loan servicers to document their right to foreclose. This legislation was signed by Governor Brown in July 2012 and took effect on January 1, 2013.

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SAN FRANCISCO – Attorney General Kamala D. Harris today issued a series of recommendations for businesses that directly address recent changes to California privacy law. The guide, Making Your Privacy Practices Public, provides businesses with an up-to-date resource to craft a useful, transparent privacy policy for consumers.   

“California has proven that robust and balanced privacy protections are consistent with a thriving innovation economy,” Attorney General Harris said. “This guide is a tool for businesses to create clear and transparent privacy policies that reflect the state’s privacy laws and allow consumers to make informed decisions.”

In 2003, California established the landmark California Online Privacy Protection Act, which was the first law in the nation to require operators of commercial websites, including mobile apps, to conspicuously post a privacy policy if they collect personally identifiable information from Californians. In 2013, the Act was amended by Assembly Bill 370, which requires privacy policies to include information on how the operator responds to Do Not Track signals or similar mechanisms. The law also requires privacy policies to state whether third parties can collect personally identifiable information about the site’s users.

In 2012, Attorney General Harris created the Privacy Enforcement and Protection Unit to enforce federal and state privacy laws regulating the collection, retention, disclosure, and destruction of private or sensitive information by individuals, organizations, and the government. The unit also works to educate consumers and recommend best practices to businesses on privacy-related issues.

After receiving requests from the business community regarding privacy policy requirements, Attorney General Harris’ Privacy Enforcement and Protection Unit consulted with numerous stakeholders from the business sector, academia and privacy advocates in developing these recommendations.

The guide is available here: http://bit.ly/RUh7Do

Key recommendations from the guide include:

• Prominently label the section of your policy regarding online tracking, for example: “California Do Not Track Disclosures.”
• Describe how you respond to a browser’s Do Not Track signal or similar mechanisms within your privacy policy instead of providing a link to another website.
• If third parties are or may be collecting personally identifiable information, say so in your privacy policy.
• Explain your uses of personally identifiable information beyond what is necessary for fulfilling a customer transaction or for the basic functionality of the website or app.
• Describe what personally identifiable information you collect from users, how you use it and how long you retain it.
• Describe the choices a consumer has regarding the collection, use and sharing of his or her personal information.
• Use plain, straightforward language that avoids legal jargon and use a format that makes the policy readable, such as a layered format. Use graphics or icons instead of text.

“HP commends the work of California in establishing expectations-based guidance for privacy as it strikes the right balance between innovation and the protection of legitimate consumer rights,” said Scott Taylor, Vice President and Chief Privacy Officer, Hewlett-Packard.

"I applaud the California Attorney General's publication of best practices for communicating with citizens about privacy. Their common-sense recommendations are clear, readable, useful, and mercifully short.  Companies will understand how to comply with the letter and spirit of California transparency laws. In particular, I am delighted to see a light-touch legislative approach for transparency around Do Not Track," said Aleecia McDonald, Director of Privacy, Center for Internet and Society, Stanford Law School.

"Publication of Making Privacy Practices Public is an important step toward helping consumers understand what companies do with the data they collect about them.  Too many privacy policies are incomprehensible legalese.  The best practices spelled out by the California Attorney General if adopted by companies would put privacy policy statements in straightforward, understandable language,” said John Simpson, Director of Privacy Project, Consumer Watchdog.

Attorney General Harris has been a staunch advocate for policies that both protect consumers’ personal information online and foster the continued growth of California’s robust technology economy.

Most recently, Attorney General Harris issued recommendations to California businesses to help protect against and respond to the increasing threat of malware, data breaches and other cyber risks. The guide, Cybersecurity in the Golden State, provides recommendations focused on small to mid-sized businesses, which are particularly vulnerable to cybercrime and often lack the resources to hire cybersecurity personnel. In 2012, 50% of all cyber attacks were aimed at businesses with fewer than 2,500 employees and 31% were aimed at those with less than 250 employees. (http://bit.ly/1p9DGiA)

In 2013, Attorney General Harris issued a guide, Privacy on the Go: Recommendations for the Mobile Ecosystem, which provided app developers with recommendations to develop strong privacy practices, translate those practices into mobile-friendly policies, and coordinate with industry actors to promote transparency. (http://bit.ly/1lZIZAC) 

In October 2012, Attorney General Harris sent letters to approximately 100 mobile app developers and companies that were not in compliance with the California Online Privacy Protection Act and gave 30 days to post a conspicuous privacy policy. (http://bit.ly/1lZIEOv) In December of that year, the Attorney General filed the first legal action against Delta Airlines, Inc. for its failure to do so. (http://bit.ly/1k2y6Pb)

In February 2012, Attorney General Harris reached an agreement among the seven leading mobile and social app platforms - Amazon, Apple, Facebook, Google, Hewlett-Packard, Microsoft and Research in Motion (now Blackberry) - which required that mobile apps provide privacy policies that users could find in a consistent location in the platform store and review before downloading an app. (http://bit.ly/1nkfUiF)

SAN FRANCISCO -- Attorney General Kamala D. Harris issued the following statement on the federal grand jury indictment of Pacific Gas & Electric Co. (PG&E) for criminal violations of the federal Natural Gas Pipeline Safety Act of 1968:

“Today’s indictment is an important step in providing justice for the individuals, families and community devastated by the 2010 pipeline explosion and fire in San Bruno. As alleged in the indictment, PG&E knowingly and willfully failed to identify and evaluate threats to its transmission pipelines, including Line 132 underneath much of San Bruno. When allegedly faced with evidence of transmission line problems, PG&E knowingly and willfully chose not to assess and remediate them.
 
My office will continue our work with local and federal partners in prosecuting this matter in federal court and holding PG&E accountable for its alleged conduct."
 
On September 9, 2010, a portion of Line 132 in San Bruno exploded and resulted in a fire that killed eight people, injured 58 others, and damaged or destroyed numerous homes.  The California Department of Justice has been conducting a criminal investigation related to the explosion in partnership with local authorities from the San Mateo District Attorney’s Office, the San Bruno Police Department, and the San Bruno Fire Department, as well as federal agencies including the U.S. Attorney’s Office for the Northern District of California, the U.S. Department of Transportation’s Office of Inspector General, the Federal Bureau of Investigation, and the Pipeline and Hazardous Material Safety Administration.
 
The charges and allegations contained in the indictment against PG&E are only allegations, and the defendant is presumed innocent unless and until proved guilty.
 
A copy of the federal indictment is attached to the electronic version of this release at: https://oag.ca.gov/news

SAN FRANCISCO - Attorney General Kamala D. Harris today announced that consumers may now file claims to recover money in a $310 million multi-state settlement with major manufacturers of Dynamic Random Access Memory (DRAM) computer chips over price fixing allegations.
 
“These companies betrayed the trust of consumers by artificially inflating prices to drive up profits,” Attorney General Harris said. “I encourage California consumers who purchased one of these products to file a claim immediately.”
 
Consumers who purchased computers, printers, video game consoles or other electronic devices with DRAM memory between 1998 and 2002 are eligible to make a claim before August 1, 2014 and could receive money from the settlement.
 
To file a claim, visit www.DRAMclaims.com or call 1-800-589-1425.
 
After completing an investigation in 2006, California, with other states, filed antitrust suits alleging that consumers over-paid for electronic devices containing DRAM chips for purchases made from 1998 to 2002. DRAM is a common form of memory chip found in computers and other devices.
 
The settlement, reached in conjunction with class actions, pays individuals and businesses that purchased these chips or devices containing these chips in the United States between 1998 and 2002 from someone other than a DRAM manufacturer, such as retailers like Best Buy or Staples. The settlement also requires that these DRAM manufacturers implement antitrust compliance programs and enjoins them from certain conduct related to the sale of DRAM that would violate antitrust laws.
 
Court filings associated with the settlement can be found here: http://dramclaims.com/settlement-details/court-documents/
 
A full list of defendant companies can be found here: http://dramclaims.com/faq/
 
For more information about the settlements, visit www.DRAMclaims.com

SAN BERNARDINO -- Attorney General Kamala D. Harris today announced the arrest of seven suspects who have been charged in a mortgage fraud scheme that defrauded more than 1,550 Inland Valley homeowners seeking loan modification services during California’s foreclosure crisis.

The felony complaint alleges that Nehad “Nick” Ayyoub Ayyoub, 57, of San Bernardino and president of The Firm Loans, Insurance and Investments Inc. and First Choice Debt Solutions Inc., along with his six colleagues, Ghydan Ayyoub Rabadi, 38, of Los Angeles, Zaid Rabadi, 49, of Los Angeles, James Clemons, 55, of Riverside County, Wissam Ismail, 32, of Riverside County, Eddie Mercado, 57, of San Bernardino, and Majid Safaie, 60, of Orange County, deceived homeowners by illegally charging up-front payments for loan modification services and lying about the services they provided.

“These individuals profited from the fear and desperation of hard working Californians who were simply fighting to keep their homes during the height of our state’s foreclosure crisis,” Attorney General Harris said. “This kind of predatory activity is reprehensible.”

The suspects are charged in a 24 count complaint of felony grand theft, personal and corporate income tax evasion and conspiracy. The suspects were booked at Murrieta Detention Center, Orange County Jail, Rancho Cucamonga Jail and Azusa Police Department today. Ayyoub is being held with bail set at $75,000 and all others are being held with bail set at $50,000. Ayyoub is facing a maximum exposure of 12 years in prison while his colleagues are facing a maximum exposure of 8 years.

According to court filings, Ayyoub and his colleagues took advantage of homeowners who were desperate to lower their mortgage payments by selling them home loan modification services and requiring payment of up-front fees. Homeowners were falsely told that attorneys would be negotiating their loan modifications, that they would get a loan modification with no risk of failure, that they would receive a refund if they were dissatisfied and that the suspects had special contacts with lenders, which would give them an advantage in obtaining lowered monthly payments.

Homeowners were instructed to stop paying their mortgage and to instead give the money to Ayyoub and his colleagues to ensure that they would obtain a loan modification, causing many victims to default on their home loans without obtaining a modification, according to court filings.

The suspects operated this scam from January 2007 to March 2010, according to court filings.

Attorney General Harris’ Mortgage Fraud Strike Force began investigating this case in 2010 yet business records were immediately sealed until September 2012 when Safaie’s claim of attorney client privilege was overruled.

Homeowners who feel they may have been victimized should file an online complaint with the California Attorney General’s Office: http://oag.ca.gov/consumers

Agents with the California Attorney General’s Bureau of Investigations were assisted by investigators with the State Franchise Tax Board.

Created in May 2011 by Attorney General Harris, the Mortgage Fraud Strike Force continues to lead the charge in investigating and prosecuting misconduct at all stages of the mortgage process.

In February 2012, Attorney General Harris secured a commitment from the nation’s five largest banks which has resulted in more than $20 billion for struggling California homeowners. Following the settlement, Attorney General Harris sponsored the California Homeowner Bill of Rights, a landmark package of legislation that restricts dual-track foreclosures, guarantees struggling homeowners a reliable point of contact at their lender and imposes civil penalties on fraudulently signed mortgage documents. In addition, homeowners may require loan servicers to document their right to foreclose. This legislation was signed by Governor Brown in July 2012 and took effect on January 1, 2013.

Please note that a complaint contains only allegations against a person and, as with all defendants, those named here must be presumed innocent unless and until proven guilty.

A copy of the complaint can be found attached to the electronic version of this release at: https://oag.ca.gov/news

FRESNO – Attorney General Kamala D. Harris today announced the arrest of five individuals who allegedly ran a statewide housing scheme by using adverse possession laws to fraudulently seize at least 23 homes in nine counties.

“It is reprehensible that these individuals lied to the courts in order to steal homes and in some cases to demand payment from the rightful owners,” Attorney General Harris said. “The conduct of the attorneys in this scheme is even more offensive because they violated their ethical duty to be honest to the courts. I am pleased that my mortgage fraud strike force, together with our state and local partners, continue to investigate and prosecute these crimes against our people and our economy."

Sandra Elaine Barton, 30, Christopher Spencer Barton, 31, Daniel Paul Vedenoff, 29, Sheldon W. Feigel, 50, and Craig Merrill Mortensen, 60, all of Fresno, were arrested today and charged with 288 felony counts including perjury, filing false court records and preparing false evidence. Cambria Lisa Barton, 21, remains at large.

All were booked into the Fresno County Jail on bail ranging from $27,500 to $1,795,000 and face restitution payments of at least $3.5 million.

According to the Attorney General’s filing, the Barton family, along with Vedenoff, Sandra Barton’s boyfriend, allegedly worked with two lawyers, Mortensen and Feigel, to identify seemingly abandoned residential properties and file for adverse possession of the property in court in order to obtain title. Once a Barton family member obtained ownership, the property would then allegedly be restored and was typically sold or rented.

Under California law (Code of Civil Procedure 325), an individual can claim adverse possession of real property if he or she has occupied or claimed it continuously for at least five years and paid property taxes for that period of time, among other requirements.

According to the Attorney General’s filing, since 2006, Barton family members and their attorneys allegedly provided factually impossible and knowingly fraudulent evidence and statements in court under penalty of perjury in order to obtain at least 23 residential properties in nine counties. These counties include: Fresno, Kern, Los Angeles, Madera, Merced, Santa Barbara, San Mateo, Sonoma and Tulare.

The alleged scheme was uncovered when Nancy Zelepsky, the true owner of a residence in Santa Barbara County, sought an equity loan in 2010 and contacted a title company in order to determine if there were any liens against her property. Zelepsky was notified that Sandra Barton had been listed as the deed holder of the home in July of that year through documents filed by Mortensen. After seeking assistance from the Legal Aid Foundation of Santa Barbara County, a court determined that Sandra Barton’s prior claim to the property was fraudulent and restored ownership to Zelepsky. The court then notified the California State Bar regarding Mortensen and the California Attorney General’s office opened an investigation in June 2011.

This case was headed by Attorney General Harris’ Mortgage Fraud Strike Force, which was created in May 2011 to investigate and prosecute misconduct at all stages of the mortgage process.

Sandra Barton faces a maximum state prison sentence of approximately 103 years, Mortensen faces 108 years, Feigel faces 15 years, Christopher Barton faces 7 years and Vedenoff faces 8 years.

The Attorney General’s Office was assisted in this case by the State Bar of California, Santa Barbara County District Attorney’s Office, Kern County Sheriff’s Department, Clovis Police Department and Fresno Police Department.

Please note that a complaint contains only allegations against a person and, as with all defendants, those named here must be presumed innocent unless and until proven guilty.

A copy of the Complaint is attached to the electronic version of this release at: oag.ca.gov/news.

SAN FRANCISCO – Attorney General Kamala D. Harris today kicked off Tax Identity Theft Awareness Week by issuing tips for Californians to follow to prevent tax-related identity theft as the annual tax compiling and filing process begins.

Tax-related identity theft increases in January and commonly occurs when:

• Thieves use stolen personal information to file tax returns in someone else’s name in order to obtain a refund.

• Thieves use a stolen Social Security number (SSN) for employment, which may complicate state and federal income tax obligations for the victim.

• Thieves send phishing emails that look like they are from the Internal Revenue Service (IRS) or the Franchise Tax Board (FTB) that ask for personal information or include links to official-looking web sites.

California consumers are urged to use the following tips to better prevent tax-related identity theft:

• Never open an email or a text message that says it is from the IRS or the FTB - they are always fraudulent. State and federal tax agencies never initiate contact with taxpayers by email, text message or social media to request personal or financial information or to send notice regarding audits or refunds.

• It’s fine to show your Social Security card to your employer when you start a job or to your financial institution for tax reporting purposes. Do not routinely carry your card or other documents that display your SSN.

• While preparing your tax return for electronic filing, make sure to use a strong password. A strong password is at least eight characters and includes a combination of at least three upper and/or lowercase letters, punctuation, symbols and numerals.

• Once you have e-filed your return, save it to a flash drive, CD or similar device and then delete the tax information from your hard drive. Store the CD or flash drive in a safe place, such as a lock box or safe. If working with an accountant, ask about what measures they take to protect your information.

• Use a locked mailbox and don’t leave your mail in it for long periods of time. Take your mail that contains sensitive information (bills, tax returns) to the post office.

• If your SSN is stolen, reference the California Attorney General’s Identity Theft First Aid page for instructions on what to do: www.oag.ca.gov/idtheft/first-aid.

You may have a tax identity theft problem if you receive a letter from the IRS or FTB stating that:

• you filed more than one tax return,
• someone has already filed using your information,
• you have a balance due, refund offset or have had collection actions taken against you for a year in which you did not file a return, or
• you received wages from an employer for whom you have not worked.

If you receive such a letter (not an email) from the IRS or FTB, immediately contact the agency’s identity theft unit:

Internal Revenue Service: phishing@irs.gov

IRS Identity Protection Specialized Unit

1-800-908-4490

California Franchise Tax Board: www.ftb.ca.gov/individuals/id_theft.shtml#ID

ID Theft Resolution Coordinator

1-916-845-3669

Additional Resources:

Internal Revenue Service

Identity Theft web pages:  www.irs.gov/uac/Suspicious-e-Mails-and-Identity-Theft and

www.irs.gov/uac/Indications-your-identity-may-have-been-stolen-and-how-to-report-it-to-us

Franchise Tax Board

Identity theft web page: www.ftb.ca.gov/individuals/id_theft.shtml#ID

California Attorney General

Identity Theft Protection and First Aid: http://oag.ca.gov/idtheft  

Federal Trade Commission

Tax Identity Theft Awareness Week: http://www.consumer.ftc.gov/features/feature-0029-tax-identity-theft-awareness-week 

For more information on how to identify and protect yourself from identity theft visit Attorney General Harris’ website.

SAN FRANCISCO – Attorney General Kamala D. Harris today issued tips for the holiday season on how Californians can protect themselves from identity theft and make the most of their charitable giving.

Tips for safe shopping:

• Review your bank and credit card statements frequently for unusual transactions.
• In the event of a security breach involving your credit card, monitor your account and contact your bank promptly if you see any suspicious transactions.
• If the security breach involves your debit card, the best way to protect yourself is to immediately cancel the card and get a replacement with a different number.
• Don’t make purchases in free Wi-Fi hotspots, such as a coffee shop, which can put your passwords and other information at risk.
• Shop on secure websites. One indicator about which websites are safe, and which are not, is the presence of a yellow padlock icon in the browser bar. Another indicator is ‘https’ in the web address.
• Never send sensitive personal or financial information through e-mail. Legitimate companies will not ask you to do so because it is not a secure way to transfer sensitive information.
• If you are receiving text messages on your cell phone saying you have won a prize or gift card, do not click on the link in the message – it is most likely a scam and may install a virus on your phone.
• Know the return policies of the retailers you shop with before you leave the store or conclude an online transaction. Many retailers will give you a refund if you have a receipt and your return is prompt, but some may only give store credit. Ask a clerk if the policy is not posted at the register.

Tips for donating wisely:

• The best way for many donors to select worthwhile charities is to work with a local charity as a volunteer. This helps provide first-hand knowledge about programs that benefit your community.
• You may want your donation used for a specific program or purpose within a charity. If a website has a “donate” button, check to see if you can designate a specific purpose for your donation. If you can’t, contact the charity to be sure your donation will be spent for the purpose you intend.
• If you are contacted by a solicitor on behalf of a charity, ask if he/she works for a commercial fundraiser and what percentage of donations goes directly to the charity. You may prefer to contact the charity directly to make a donation.
• If you receive an email or text message asking for a donation to a charity, contact the charity directly and confirm that the request is legitimate.
• If a solicitor tells you the donation is for your local police, firefighter or other public safety agency, check directly with the agency to avoid a potential scam.
• Don’t assume that charity recommendations on Facebook, blogs, or other social media have been vetted. Research the charity yourself.
• Make charitable contributions directly on a charity's website. If donating by check, use the full name of the charity rather than initials or an abbreviation. Do not give your credit card number to a telephone solicitor or in response to any unsolicited phone call you receive.

Additional consumer tips, information, and lists of resources are available at:

The California Attorney General’s consumer tips on identity theft and other privacy issues, https://oag.ca.gov/privacy/info-sheets

The California Attorney General’s Guide to Charitable Giving, http://oag.ca.gov/sites/all/files/agweb/pdfs/charities/publications/CharitiesSolicitation.pdf

www.ftc.gov, or toll free nationwide at (877) 382-4357

www.give.org, for additional information about a specific charity