CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT
PROTECT YOURSELF
FROM FRAUD
For Servicemembers, Veterans and their Families
Table of Contents
Financial Fraud and Scams
1
Managing Your Finances
5
Financial Dicules
8
Homeownership
11
Safeguarding Your Personal
14
and Financial Informaon
Avoiding Cyber Fraud
16
Check Before You Sign Form 17
Resource Guide 18
How to File a Complaint
20
About the DBO
The Department of Business Oversight (DBO)
regulates state-licensed nancial instuons,
products and professionals.
As part of its mission, the DBO also strives to
help consumers protect
their personal nances against fraud.
For a list of licensees and industries
regulated by the DBO visit
www.dbo.ca.gov
The DBO has created this consumer educaon
booklet to help military servicemembers and
veterans make sound nancial decisions and
protect themselves and their families from
common scams and fraud.
Oce of Educaon and Outreach
The DBO’s Oce of Educaon and Outreach
is commied to providing consumers helpful
informaon and materials on a variety of
nancial topics. The outreach programs empower
Californians to make smart decisions about
their nances. Informed and educated consumers
are less likely to fall vicm to nancial fraud.
Protect Yourself From Fraud for
Servicemembers, Veterans and their Families
This program alerts and educates the California
military community about nancial fraud,
predatory lending, and how to avoid scams.
The Mortgage Educaon Outreach Program
This program provides informaon and
resources about homeownership and the home
buying process, loan modicaons, prevenng
foreclosure, and mortgage fraud and scams.
Seniors Against Investment Fraud
This progam alerts and educates California seniors
about nancial fraud and scams.
Department of Business Oversight
Protect Yourself and Your Family From
Financial Fraud and Scams
You might be surprised — veterans, servicemembers and their families are
prime targets of nancial fraud and scams.
Anity Investment Fraud
Anity fraud relies on bonds of trust. Take the
me to learn the red ags so you can spot and
avoid investment fraud. Military es can be
exploited to commit fraud — in some cases,
by fellow servicemembers or veterans. No
maer how well you know the salesperson,
and even if you served with them, make sure
they are licensed and the investment product
is registered. Minimize your risk by asking
quesons and geng the facts about any
investment, and the broker.
The Financial Industry Regulatory Authority
(FINRA) Broker Check is a free tool to research
the background and experience of securies
brokers, nancial advisers and rms. For more
informaon, go to hps://brokercheck.nra.org
or call 1-800-289-9999.
See the Resource Guide on page 19 for FINRA
informaon.
Ponzi and Pyramid Schemes
Most anity fraud involves Ponzi or pyramid
schemes in which new investor money is used to
pay earlier investors, creang the illusion that
the investment is sound and protable. In reality,
the fraudster almost always steals investors’
money for personal use. Both types of schemes
depend on an unending supply of new investors.
When the inevitable occurs, and the supply of
investors dries up, the scheme collapses and
investors lose most or all of their money.
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WARNING SIGNS
• Each new recruit must make an upfront
investment or purchase a starter kit to join.
• Parcipants make money on each new
recruit.
• There is no customer refund policy.
• Salespeople try to create the impression
they have special “cered” credenals
or experse in “military” or “veteran”
services and products
.
Promissory Note Fraud
A promissory note is a form of debt that
companies somemes use to generate revenue.
A company promises to return the buyer’s funds
(principal) and make xed-interest payments in
exchange for borrowing money.
Some promissory notes can be legimate
investments, while others turn out to be
fraudulent.
Contact the DBO to determine whether the
seller is properly registered and in compliance
with California’s securies laws, or check with
the Securies and Exchange Commission (SEC)
at www.sec.gov/edgar.shtml to see if the notes
are registered. Most promissory notes are
securies and have to be registered with
the SEC.
Remember that securies are never
guaranteed and there is always some
risk involved.
Online Escrow Scams
Carefully evaluate online escrow sites before
signing up for any service oering "safe or
secure" transacons when buying or selling
online.
Unfortunately, some are phony copycat sites.
Contact the DBO to verify that an escrow
company is licensed.
TIPS
• Avoid any escrow service that does not
list an address or phone number on their
website.
• Do not give personal or nancial informaon
over the Internet, unless it is via a secure
website, and you iniate the contact.
Secure sites have an “s” at the end of the “hp”
in their website address, displayed as “hps.”
Most web browsers display a padlock icon to
indicate a website is secure.
Left side of search bar:
icon
lock
Money Wiring/Transfer Scams
Scammers use a variety of taccs to
persuade people to send money, such as
saying you have won a prize, loery or
inherited money, but have to pay fees or
taxes in advance. Scammers also pose as a
friend or family member who is in trouble
and needs you to send money immediately.
https://
Right side of search bar:
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Department of Business Oversight
•
•
Never wire or transfer money to anyone
you do not know.
Verify independently that a friend or family
member is in need of nancial assistance.
TIPS
Report these scams to the Federal Trade
Commission (FTC) at www.c.gov/complaint
or call 1-877-382-4357.
Pension Scams
Veterans and their families also have been
targets of pension scams. Such schemes oen
involve unscrupulous aorneys and nancial
advisors who convince veterans to transfer their
assets into a special trust account to qualify for
addional benets, then charge exorbitant fees
to help complete complicated paperwork for
the transfer.
WARNING SIGNS
• Oers of pension cash advances.
• Oers of free help with paperwork to qualify
for addional benets.
• Oers to transfer assets to a trust or
invest in insurance products.
Contact the DBO to verify whether the seller
is properly licensed and in compliance with
California’s securies laws.
For more informaon about the U.S.
Department of Veterans Aairs (VA) pension
eligibility requirements, go to
www.benets.va.gov/pension or
call 1-800-827-1000.
“Immediate Acon Required” Requests
Don’t believe promises of quick prots, insider
informaon, or sales pitches like “you must act
now.” If a salesperson won’t allow you me to
compare prices and features or explore other
opons, these can be warning signs of fraud.
Bait-and-Switch Schemes
Dishonest salespeople may try to change interest
rates, terms and condions, or other important
nancial details of a service agreement. They
may also try to convince you to buy nancial
products or investments that you cannot aord,
that are not in your best interest or that may be
enrely dierent from what you thought you
were purchasing. Always check to make sure the
paperwork matches the promises and never sign
a blank form!
Charity Scams
Con arsts oen try to take advantage of others'
generosity, especially aer a disaster such as a
ood, hurricane or re. Verify that a charity is
legimate before sending a check or providing
your credit card number. For more informaon,
visit the Oce of the Aorney General at
www.oag.ca.gov/charies
Bogus Online Sales
Scammers use online aucon and classied
ad sites to claim to be acve military heading
for overseas assignments. They oer jobs,
apartments, or goods available for a quick sale
before they leave. In reality, they oen have
nothing to oer and will take your money. Try
to use local sites and do not give out personal
nancial informaon.
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Home/Vacaon Rental Scams
Beware when searching the web for home
or vacaon rentals. Scammers can hijack
legimate rental lisngs, change the
informaon and adverse at a discounted price,
leaving you with fake keys for a property that
doesn’t exist.
TIPS
• Never wire money to anyone for a deposit,
rent, or fees associated with a rental
property.
• Never send money without having a lease
and conrming that the property manager
has a right to lease the property.
Loery and Sweepstakes Scams
Scam arsts use promises of valuable prizes
or awards to persuade people to send money.
Vicms receive a leer, email or text message
claiming they have won a foreign loery or
sweepstakes. Scammers tell vicms to claim
their prize by sending a personal check, money
order or wire transfer to cover “upfront costs.”
It is illegal for a U.S. resident to play a foreign
loery, and it's also illegal to pay upfront costs
or fees to claim such a prize.
Foreign Leer Scams
If you receive an email or leer claiming to be
from a foreign government, foreign ocial,
widow or servicemember asking you to send
personal or bank account informaon, do not
reply. Do not believe promises of large sums of
money for your cooperaon. Always guard your
personal and nancial informaon carefully.
Phishing Scams
Phishing involves real-looking emails that seek
personal and nancial informaon. Usually, the
message appears to be from well-known and
trusted government agencies (IRS or VA), banks
and credit unions, as well as many popular retail
stores. The emails may even look like they are
from friends or family. If you think you have
received one of these bogus messages, contact
that agency, department, business or person
directly to verify.
Internet Romance Scams
Scammers create fake online proles on dang
sites or social media. They profess their love
quickly and tug at your heartstrings with
sob stories about how they need money for
emergencies or medical bills. If your online
sweetheart asks for money, it’s likely a scam.
For more informaon on how to protect
yourself from fraud and scams, visit
www.dbo.ca.gov/Consumers/brochures/
or call 1-877-275-2677.
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Department of Business Oversight
Managing Your Finances
Making smart nancial decisions requires analysis and careful aenon to
detail. Some servicemembers have lost naonal security clearances due
to nancial problems. Financial troubles and bad credit also can follow
you back to civilian life.
Simple Steps to Manage Your Money
• Make a list of all your income sources and
expenses (big and small).
• Keep tabs on your investments, insurance,
phone bills, checking, savings, and credit
card accounts.
• Review statements frequently to ensure all
fees and charges are accurate.
• Plan ahead for large expenses such as
insurance, mortgage payments, property
taxes, and vehicle registraon.
• Factor in special occasions, unexpected
expenses and medical emergencies.
• Establish an emergency fund for
unexpected expenses.
• Use credit cards for convenience only, and
pay them o monthly, if possible. Always
try to pay more than the minimum
payment.
• Don't take out loans you cannot aord,
or that contain excessive interest or fees.
Create a Budget
An important rst step in money management
is creang a budget. Make adjustments as your
nancial circumstances change. See Budget
Worksheet on the DBO website at
www.dbo.ca.gov/consumers/brochures/
Maintain Good Credit
Lenders use your credit score to determine whether
you qualify for a credit card, loan or other nancial
services. It also impacts interest rates on current
and future loans. The higher your credit score, the
lower the interest rate you pay. You can improve
your credit score by paying your bills on me and
paying them o in full.
To avoid surprises, review your credit score before
you apply for new loans, mortgages, or credit cards.
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As part of the U.S. Department of Defense
Financial Readiness Campaign, acve duty
servicemembers and their spouses can receive
a free copy of their credit score by using the Free
Credit Score Analysis Tool at
www.saveandinvest.org/free-credit-score-and-
analysis-tool
For Help With Credit or Creditor Problems
Naonal Foundaon for Credit Counseling
Visit www.nfcc.org or call 1-800-388-2227
HUD-approved Housing Counseling Agencies
These agencies oer nancial management,
budget, debt and credit counseling whether or not
you are trying to buy a home.
Visit www.hudexchange.info/programs/housing-
counseling/customer-service-feedback/ or call
1-800-569-4287.
Request Your Credit Report
A credit report shows your credit acvies,
including loans, unpaid balances, how regularly
you make payments, and any acons against you
due to unpaid bills.
To request a free credit report from Equifax,
Experian or TransUnion, go to
www.annualcreditreport.com or call
1-877-322-8228. Consumers can request a free
credit report every 12 months. Some websites
adverse “free” credit reports, but may charge
you for another product if you order the report.
Review credit reports carefully and regularly
to make sure you are not a vicm of identy
the. Look for accounts you do not recognize
(especially new accounts), or addresses
where you have never lived. Report any
discrepancies immediately.
Call the credit bureaus
Equifax 1-866-349-5191
Experian 1-888-397-3742
TransUnion 1-800-680-7289
Before Making A Major Financial Decision
• Idenfy your nancial goals and analyze
various opons. Consider how much
nancial risk you can tolerate, and
recognize this may change as your life
circumstances change.
• Invest only what you can aord to lose.
• Verify that people who make money from
your purchases and investments have
proper credenals before you give anyone
your nancial or other personal
informaon.
• Always ask salespeople to ll out the
“Check Before You Sign” form (see page 17)
to verify their California license,
company and products. Contact the DBO to
see if there have been any disciplinary
acons against them.
• Insist that salespeople disclose, in wring,
all costs, service charges, penales, fees,
products and services. Ask about any
potenal conicts of interest.
• Be sure to ask about prepayment and early
withdrawal penales or fees.
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Department of Business Oversight
Transacon Fees and Surcharges
• Be aware of fees and surcharges! Airline
and concert ckets, ATMs, hotels, and even
gi cards may have charges that make
seemingly inexpensive items more expensive.
• These small charges make it dicult for you
to compare prices, and can quickly add up to
hundreds of dollars per year.
For more informaon about managing
everyday nances, visit
www.SaveAndInvest.org
Federal Financial Instuon Regulators
Federal Deposit Insurance Corporaon
Consumer Response Center
1-877-275-3342 (1-877-ASK-FDIC)
Oce of the Comptroller of the Currency
Customer Assistance Group
1-800-613-6743
Federal Reserve Consumer Help
1-888-851-1920
Naonal Credit Union Administraon
Oce of Consumer Protecon
1-800-755-1030
Car Loans
Check with your bank or credit union to explore
car loan opons and interest rates before
accepng a dealer's loan. Also consider whether
you will be able to manage the payments, car
insurance, operang costs and repairs.
Avoid Costly Overdra Fees
Watch for fees on checks, ATM withdrawals,
debit card purchases and bill payments that
are debited electronically from your account.
Contact the bank or credit union for assistance.
For state-chartered banks and credit unions,
contact the DBO.
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Financial Difculties
If you or your family members are having nancial troubles, don’t let
fear or embarrassment stop you from seeking help. This secon explains
common issues for people experiencing nancial hardships and provides
resources for nancial recovery.
Payday Loans and Online Cash Advances
In California, payday loans (also called cash
advances or deferred deposit loans) are
regulated by the DBO. Payday loans may look
like a good way to get quick cash between
paychecks, but they carry high interest rates,
up to 36 percent for individuals on acve duty
status and much higher for others. California law
restricts these loans to a maximum of $300, and
the same lender cannot issue a new loan to pay
o an exisng payday loan.
To receive one of these loans, the borrower
must ll out an applicaon, provide necessary
documentaon and write a check which the
lender will not deposit unl the borrower’s next
payday, up to 31 days later. Payday lenders and
online companies that provide deferred deposit
transacons are required to post their California
license and fee schedule at every store and
website.
Unlicensed Internet Payday Lending
Payday lending sites have increased across the
Internet. Consumers are strongly urged to
verify that a lender is licensed before providing
personal informaon and borrowing funds.
Illegal lenders may collect from your bank
account without your permission, charge you
a higher interest rate, and sell or pirate your
personal nancial informaon. If they are
operang out of state or overseas, it is nearly
impossible to track them down and recover lost
funds. Before borrowing from an online payday
lender, verify that the lender is licensed by the
DBO and check if an enforcement order has
been issued against them.
Loan Modicaon and Foreclosure Companies
These companies and consultants typically oer
to renegoate an exisng mortgage or prevent
foreclosure in exchange for a large upfront fee.
As a result, distressed homeowners oen end
up paying for services that may be available for
free, or receive lile to no help.
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Department of Business Oversight
Help is available
Military personnel and families who are
experiencing dicules with a mortgage,
need to renegoate a loan or prevent
foreclosure should immediately look for free
legal help on base. Be sure to ask whether the
Servicemembers Civil Relief Act (SCRA) would
apply to your circumstances.
Servicemembers Civil Relief Act
The SCRA provides a wide range of protecons
for those in the military. It is intended to ease
nancial burdens to enable soldiers to devote
full aenon to duty and relieve stress on the
family members of deployed servicemembers.
The SCRA allows military families to defer:
• Credit card debt
• Mortgage payments
• Pending trials
• Taxes
• Lease terminaons
For more informaon, visit
hps://scra.dmdc.osd.mil/scra/
Debt Collectors
If you are late making payments on a loan,
credit card or other bills, you may be contacted
by a debt collector. If you are contacted or
harassed about a debt or transacon that is not
yours, be cauous. This could be a scam arst
trying to get your personal informaon and
money.
Know your rights under California’s as well as
the federal Fair Debt Collecon Pracces Act.
Informaon about both can be obtained from
the California Aorney General’s Oce and the
Federal Trade Commission.
Facing Bankruptcy
If you plan to le for bankruptcy, you must get
credit counseling from a government-approved
organizaon within 180 days before you le. You
also have to complete a debtor educaon course
before your debts can be discharged. For more
informaon, visit
www.consumer.c.gov/arcles/0224-ling-
bankruptcy-what-know
•
TIPS
If you need assistance with your nances,
contact your base nancial counselors.
They can help you review your nancial
situaon and develop a personalized money
management plan.
• Every service branch has aid sociees
to provide advice and emergency nancial
help to servicemembers and families.
For a complete lisng, visit
www.militaryonesource.mil
Military Lending Act (MLA)
Most types of consumer loans oered to
acve duty servicemembers and their
dependents must comply with the MLA.
These products include, but are not limited to:
• Payday loans, installment loans, deposit
advance products, and vehicle tle loans.
• Overdra lines of credit (but not tradional
overdra services).
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If you’re on acve duty and decide to take out one
of these loans, you have rights under the MLA,
including a limit on the interest rate the creditor
can charge. There are some loans the MLA doesn’t
cover – namely, credit that is secured by the
property being purchased. These loans include:
• Residenal mortgages, mortgage renances,
home equity loans or lines of credit, and reverse
mortgages.
• A loan to buy a motor vehicle when the loan
is secured by the motor vehicle you are
buying.
• A loan to buy personal property when the
loan is secured by the property you’re buying,
such as a home appliance.
The MLA also assures that acve duty soldiers
(including those on acve Naonal Guard or acve
Reserve duty) and covered dependents cannot
be charged higher than a 36 percent Military
Annual Percentage Rate (MAPR) on most types of
consumer loans.
If you have an issue with a consumer loan, you
can submit a complaint to the Consumer Financial
Protecon Bureau (CFPB) at
www.consumernance.gov or by calling
1-855- 411-2372.
Contact your local Judge Advocate General’s (JAG)
oce to learn more about lending restricons.
You can use the JAG Legal Assistance Oce
locater to nd help at hp://legalassistance.law.
af.mil/content/locator.php
Ancipatory Loans
Ancipatory loans allow you to borrow from
your future income and do not require a credit
check or lengthy approval. They may seem to
be an easy way to get cash in a hurry, but they
will reduce your future income, such as a tax
refund, by the amount of the loan plus charges,
fees and high interest.
Car Title Loans
Car tle loans require you to sign over your
vehicle tle to the lender and pay a fee to
borrow money. In California, consumers usually
must pay the loan back within two years. If
you cannot make the payments, the lender can
sell your vehicle to repay the loan. If you are
seeking a car tle loan to pay living expenses,
consider asking your creditors for addional
me to pay your bills or seek help from a credit
counselor.
Installment Loans
Consumers who need more money than they
can get from payday loans may try installment
loans. These loans are repaid in installments,
usually over one year or longer. Lenders report
payments to credit bureaus, so consumers can
improve or harm their credit scores depending
on their situaon. Before you sign a contract,
calculate the full cost of the loan, and be
cauous of unnecessary fees.
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Department of Business Oversight
Homeownership
Buying a home is excing. It’s also one of the most important nancial
decisions you’ll make. Choosing the right mortgage to pay for your new
home is just as important as choosing the right home.
Buying a Home
The DBO licenses and regulates a variety of
mortgage specialists, including residenal
mortgage loan originators, mortgage lenders,
escrow agents and mortgage loan servicers. To
verify the license or le a complaint against one
of these individuals, contact the DBO.
You can also verify the license of real estate
professionals. See page 18 to contact the
California Department of Real Estate.
Home Loans for the Military Community
The U.S. Department of Veterans Aairs (VA)
helps servicemembers, veterans, and eligible
surviving spouses become homeowners. The
VA provides a home loan guaranty benet
and other housing-related programs to help
buy, build, repair, retain, or adapt a home if
necessary.
For more informaon, visit
www.benets.va.gov/HomeLoans
If you live in California, a CalVet home loan can
save you money, simplify the lending process, and
help protect your investment.
For more informaon and to check eligibility visit
www.calvet.ca.gov/HomeLoans or call
1-866-653-2510.
Know Your Rights
Consumer Protecon Laws:
The California Residenal Mortgage Lending Act
(CMRLA) requires DBO licensees to be ethically,
nancially and professionally qualied to serve
consumers.
For more informaon, visit www.dbo.ca.gov
The California Homeowner Bill of Rights (HBOR)
requires mortgage lenders and servicers to
treat consumers fairly, especially those facing
foreclosure.
For more informaon, visit the CA Aorney
General’s website at www.oag.ca.gov/hbor
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The federal Truth in Lending Act (TILA) protects
consumers against inaccurate and unfair credit
billing and credit card pracces, and requires
lenders to provide consumers with loan cost
informaon so you can comparison shop for
loans. For more informaon, visit the Oce of
the Comptroller of the Currency at www.occ.gov
Warning signs of foreclosure fraud:
• Advance fees for loan modicaons are illegal
in California unless you have an advance fee
agreement.
• An oer to rent your house to you unl your
nances rebound.
• Anyone who rushes or encourages you to
sign forms that contain blank spaces to be
"lled in later."
• A mortgage rescue company that contacts
you rst. Many are not legimate. Always
select a company with the assistance of trained
professionals.
Consumer Financial Protecon Bureau
The CFPB can help you nd approved housing
counselors in or near any U.S. ZIP Code.
This resource can be found at
www.consumernance.gov/nd-a-housing-
counselor or by calling 1-855-411-2372.
Beware of Foreclosure Rescue Scams
Real help is free! Foreclosure rescue and
mortgage modicaon scams are a growing
problem that could cost you thousands of dollars
or even your home. Scammers oen make
promises they can’t keep, such as guaranteeing to
“save” your home or lowering your interest rate.
They oen charge a high fee and pretend
to have direct contact with your mortgage
servicer.
If you think you’ve been scammed, le a
complaint immediately. See How to File
a Complaint on page 20. For more ps
for struggling homeowners, see Path To
Homeownership at
www.dbo.ca.gov/Consumers/brochures/Path_
to_Homeownership_English.pdf
Homeowners struggling with their mortgage
payments should keep the following ps in
mind:
TIPS
• Only your mortgage servicer has the
discreon to grant a loan modicaon. No
third party can guarantee or pre-approve
your mortgage modicaon applicaon.
• Paying a third party to assist with your
applicaon does not improve your likelihood
of receiving a mortgage modicaon.
• Verify any individual or company that claims
to be aliated with the U.S. government
in correspondence, or on the web. Call the
Homeowner’s HOPE Hotline at
1-888-995-HOPE (4673).
• Beware of individuals or companies that
advise you to stop making your mortgage
payments or disconnue contact with your
mortgage servicer.
• Do not sign over the deed to your property
to any individual or organizaon unless
you are working directly with your mortgage
company to forgive your debt. Never sign it
over without professional advice.
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Department of Business Oversight
Ask yourself these quesons before trying to sell
your home:
• Can I sell my home at a price that will pay o my
mortgage?
• Can I rent my home at a price that will
cover the mortgage payment?
• Will I receive a dierent housing allowance at my
new duty staon?
• Will my spouse be able to nd a comparable job
at our new locaon fairly soon?
• Will I receive a Permanent Change of Staon?
If you answered “no” to any of the above
quesons, you should consider talking to:
• Your lender to see if you can negoate a loan
modicaon that lowers your monthly payments
and makes the mortgage more aordable.
• Your installaon’s personal nancial managers.
They may be aware of resources that can help
members of the military who have trouble
selling their homes.
• The U.S. Department of Housing and Urban
Development (HUD), which has foreclosure
avoidance counselors (see page 6).
Keep in mind that your housing allowance may be
tax exempt, a signicant advantage over civilian
home shoppers. Be careful not to overextend
yourself. Decide whether to rent or buy. If you plan
to stay in your new home for less than three years,
it’s usually a good idea to rent.
If you decide to buy, consider whether you’ll be
able to rent the house for enough to cover your
mortgage if you have to move again before you can
sell the house.
TIPS
• Know your new cost of living. Locaons
may vary.
• Determine your housing budget and
calculate how much you can aord
to spend on housing.
• Check and try to improve your credit
score. Whether you’re planning to buy
or rent, your credit score maers.
• Property managers frequently check the
credit of potenal renters.
• When buying a home, compare rates and
limits between a VA loan and other loans.
The VA home loan is one of the few that does
not require a down payment. You need to be
careful that you don’t end up underwater if
you have to sell your house in the next few
years, before you’ve had a chance to build
equity. Consider how rising home prices
and interest rates may aect your monthly
payment and mortgage products in general.
13
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www.dbo.ca.gov
Safeguarding Your Personal and
Financial Information
Protecng your personal informaon can reduce your risk of nancial
exploitaon and identy the.
Protect Your Social Security Number, Credit
Card and Debit Card Numbers, PINs and
Passwords
Carry only what is necessary in your wallet or
purse: a credit card, debit card or checks. Keep
the rest, including your Social Security and
Medicare cards, in a safe place.
• Do not print your Social Security, telephone or
driver’s license number on your checks.
• Never give your account numbers over the
phone unless you iniate the call.
• Keep a close watch on bank, credit union
and credit card statements. Report
discrepancies immediately.
• When making a purchase online, use a credit
card that is not linked to your bank accounts.
• Shred canceled checks, credit card
statements, and other nancial documents
that contain your personal and nancial
informaon.
• Never use birth dates, phone numbers, the
last four digits of your Social Security number
or your mother's maiden name as passwords.
• Sign up for direct deposit of your paycheck,
pension check or government benets.
• Protect your incoming mail by using a locked
mailbox for your residence and promptly
removing mail aer it has been delivered.
• Do not leave mail out for pick up. If mail is
stolen, contact the U.S. Postal Inspecon
Service at 1-877-876-2455 or go to
www.postalinspectors.uspis.gov
Reduce Unsolicited Correspondence
To opt out of pre-approved credit and
insurance oers, visit
www.optoutprescreen.com or call
1-888-5-OPT-OUT. The phone number and
website are operated by the major consumer
reporng companies.
14
Department of Business Oversight
The federal government’s Naonal Do Not
Call Registry is a free, easy way to reduce the
telemarkeng calls you receive. To register or to
get informaon about the registry, go to www.
donotcall.gov or call 1-888-382-1222 from the
phone number you want to register.
The Direct Markeng Associaon oers a service
to help you reduce unsolicited commercial
emails, mail and phone calls from DMA
members. Visit www.dmaconsumers.org to
register.
If You are a Vicm of Identy The
Immediately report identy the to your local
police department and the Federal Trade
Commission (FTC). If the loss involves funds held
in a bank or credit union, report the problem to
the nancial instuon immediately. The FTC
recommends that you immediately take the
following acons:
• Create an identy the report.
• Place an inial fraud alert and order
your credit report from one of the three
naonwide credit reporng companies
(see page 6).
• Consider placing an extended fraud alert or
freeze on your credit.
If Your Debit Card, Checks or Bank Account
Informaon Are Lost or Stolen
Immediately nofy your bank or credit union
to stop payments and nofy their check
vericaon company:
ChexSystems 1-800-428-9623
TeleCheck 1-800-710-9898
If Your Social Security Number is Stolen
If you suspect that someone else is using your
Social Security number, immediately contact the
U.S. Social Security Administraon at
www.ssa.gov or call
1-800-772-1213 (TTY 1-800-325-0778).
Identy The Resources
The California Oce of the Aorney General at
www.oag.ca.gov/idthe
The FTC Identy The hotline
1-877-ID-THEFT (1-877-438-4338) or at
www.c.gov
15
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Ten Tips to Avoid Cyber Fraud:
1
2
3
4
5
6
7
8
9
Be cauous of emails that contain aached les; the les may contain viruses.
Avoid lling out forms contained in email messages that ask for personal informaon.
Do not reply to unsolicited email (spam) or pop-up messages that ask for personal or
nancial informaon.
Never click on links in unsolicited email.
If you receive an email claiming to be from a company you do business with,
contact the business to verify the email is genuine.
Log on directly to the ocial website for the business idened in the email instead
of clicking a link in an unsolicited email.
If an email appears to be from your bank or credit union, credit card issuer, or some
other company you deal with frequently, verify its authencity before you respond. Your
statements or ocial correspondence from the business will provide the proper contact
informaon. Financial instuons will not request your personal informaon via email.
WiFi hotspots provide free Internet access in coee shops, libraries, airports, hotels,
universies, and other public places. While convenient, public WiFi networks oen are
not secure. Protect your personal informaon while using a public wireless network.
Avoid exposing sensive informaon such as your logins, passwords
and Social Security number.
If a WiFi hotspot does not require a password, it is not secure. Other users on the network can
see what you send. Your personal informaon, private documents, even login credenals could
be accessed without your knowledge or permission.
16
Department of Business Oversight
Check Before You Sign
Before signing a contract or mortgage, have the person oering products or services complete, sign
and return this form to you. Verify both the person and company are licensed or authorized to sell or
oer the specic type of product by contacng the appropriate licensing agency (see the next page
for agency contact informaon). Keep the completed form for your records.
Seller/Agent and Company Informaon (please print clearly)
Seller/Agent Name
Company/Business Name
Company/Business Address
Phone Number(s)
Email
I am oering the following product(s) and/or services (check all that apply)
q Financial Planning: q Financial Planning Services q Investment Advice
q Financial Services: q Mortgage
q Reverse Mortgage
q Escrow/Title
q Renance q Mortgage Modicaon
q Home Equity Loan
q Real Estate: q Broker/Agent q Other
q Appraisal: q Home Appraisal Services
q Insurance: q Mortgage Insurance
q Earthquake Insurance
q Other
q Title Insurance
q Flood Insurance
q Property Insurance
q Life Insurance
q Legal Services: q Document Review
q Other
q Contract Review q Estate Planning
q Accounng: q Accounng Services
q Other
q Tax Preparaon
q Contractor Services: q Home Repair q Remodeling
q Other
I am currently licensed by
q CA Department of Business Oversight License #:
q CA Department of Real Estate License #:
q CA Bureau of Real Estate Appraisers License #:
q CA Department of Insurance License #:
q CA State Bar Associaon State Bar #:
q CA Board of Accountancy CPA License #:
q CA Contractors State License Board License #:
q Other________________________ License #:
I cerfy that I am making these representaons truthfully in order to do business with you.
Signature:
Date:
17
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18
Department of Business Oversight
Before Signing or Seeking Advice
have the person oering products/services complete the other side of this page,
sign and return it to you.
Verify
both the salesperson or advisor and their company are licensed and authorized to
sell or oer the specic type of product. Remember to keep this completed form
for your records.
Contact
the appropriate California licensing agency below (or call the California
Department of Business Oversight for referral to the appropriate regulator).
Resource Guide
Agency Responsibilies Contact Informaon
CA Department Licenses and regulates individuals and 1-866-275-2677
of Business companies engaged in various nancial TTY 1-800-735-2922
Oversight
(DBO)
acvies, including investment advisors,
brokers, escrow, mortgages, payday
www.dbo.ca.gov
lenders and state-chartered banks and
credit unions
CA Department of Licenses and regulates insurance agents, 1-800-927-4357
Insurance (CDI) brokers, companies, and products www.insurance.ca.gov
CA Department of Licenses and regulates real estate Fresno 1-559-445-5009
Real Estate (DRE) maers and professionals Los Angeles 1-213-620-2072
Oakland 1-510-622-2552
Sacramento 1-877-373-4542
San Diego 1-619-525-4192
www.dre.ca.gov
State Bar of Licenses aorneys and regulates the License vericaon 1-800-843-9053
California profession and pracce of law in and complaints www.calbar.ca.gov
California. Administers the California
Bar Exam and disciplines aorneys who
violate rules and laws
CA Department of Licenses and regulates more than 100 1-800-952-5210
Consumer Aairs professions, including accountants, www.dca.ca.gov
(DCA) doctors, contractors, automove
repair, duciaries, cosmetology and the
cannabis industry
19
Agency Responsibilies Contact Informaon
CA Department of
Social Services (DSS)
Provides informaon about social
services, including cash aid, food,
transportaon, housing, health,
residenal care, day care, disaster
services and in-home care
1-916-651-8848
www.cdss.ca.gov
CA Employment
Development
Department (EDD)
Provides assistance with jobs and
training, state disability insurance
and unemployment. Oers regional
Veterans’ Employment-Related
Assistance Program (VEAP)
See website www.edd.ca.gov
for directory
CA Franchise Tax Board
(FTB)
Administers two of California’s major
tax programs: Personal Income Tax
and Corporaon Tax
General Assistance 1-800-852-5711
www.b.ca.gov
CA Public Ulies
Commission (CPUC)
Regulates privately-owned ulies,
natural gas, telecommunicaons,
and transportaon companies
Consumer Aairs
Branch
1-800-649-7570
www.cpuc.ca.gov
Financial Industry
Regulatory Authority
(FINRA)
Regulates both the rms and
professionals selling securies in
the U.S.
Broker Check 1-301-590-6500
1-800-289-9999
www.nra.org
Military One Source A 24/7 resource for individualized
consultaons, coaching and
counseling for many aspects of
military life
1-800-342-9647
www.militaryonesource.mil
U.S. Department of
Defense (DOD)
The starng point for nding
U.S. military informaon for
servicemembers and their families
1-703-571-3343
www.defense.gov
U.S. Federal Trade
Commission (FTC)
Provides consumer protecon on
loans, credit cards, identy the,
telemarkeng, funerals and
cemeteries
1-877-382-4357
www.c.ca.gov
U.S. Securies and
Exchange Commission
(SEC)
Licenses and regulates naonal
securies exchanges (NYSE and
NASDAQ), investment companies,
mutual funds and investment advisors
1-800-732-0330
www.sec.gov
Vet Center Provides a broad range of counseling,
outreach, and referral services to
combat veterans and their families
Crisis Line 1-800-273-8255
1-877-927-8387
www.vetcenter.va.gov
Resource Guide
For a complete list of resources, visit: www.dbo.ca.gov/Consumers/pdf/Consumer_ResourceGuide.pdf
1-866-275-2677
www.dbo.ca.gov
HOW TO FILE A COMPLAINT
Do you think you have been a vicm of nancial fraud?
Do you think you have been scammed?
Help up us protect Californians from unlicensed
or fraudulent consumer transacons.
How to File a Complaint with the California Department of Business Oversight
1. For the fastest response, le a complaint form online. Download the form from our website at
www.dbo.ca.gov/consumers
2. If you don't have access to a computer, call us at 1-866-275-2677 to have a complaint form
mailed to you.
3. Summarize your complaint and provide all relevant informaon that may help us understand and
review your complaint.
4. Provide copies of all documents supporng your complaint (do not send originals, Social Security
numbers or any other sensive informaon).
Mail the completed and signed complaint form to:
California Department of Business Oversight
Consumer Services Oce
1515 K Street, Suite 200
Sacramento, CA 95814
20
Department of Business Oversight
Register to Access Your Benets:
Department of Veterans Aairs
www.va.gov/ebenets/homepage
California Department of Veterans Aairs
www.calvet.ca.gov
The California Department of Business Oversight would like
to thank the numerous state and federal agencies and other
organizations for their contributions to the information
covered in this booklet.
21
1-866-275-2677
www.dbo.ca.gov
CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT
Toll Free 1-866-275-2677
TTY 1-800-735-2922
Online www.dbo.ca.gov
Connect with us on Twier and Facebook
@CaliforniaDBO
Read the Financial Educaon Blog
hp://cam.blogs.ca.gov
Contact us to arrange speakers for events.
To request addional copies of this booklet or other
nancial educaon materials, please call our
number or email publicaons@dbo.ca.gov
