Welcome to the State of California Take Charge! California Web site

Scam Types

Census Scams
Certificate of Deposit (CD) Scam
Disaster Relief Scam
eBay Second Chance Scam
Economic Stimulus Scams
Employment Scam
Fake Check Scam
Foreclosure Rescue/Loan Modification Scam
Grandparent Scam
H1N1 Virus (Swine Flu) Scam
Health/Medical Scam
Health Fraud Awareness Video
Internal Revenue Service (IRS) Scam
Jury Duty Scam
Lottery Scam
Memorabilia/Collectable Scam
Phishing/Spoofing Scam
Property Tax Reassessment Scam
Pyramid/Ponzi Scam
Rental Scam
Reshipping Scam
Scholarship Scam
Sweepstakes Scam
Telemarketing Scam
Twitter-for-Money Scam
Unlicensed Contractor Scam
Vishing

Census Scam

A scammer pretending to be a U.S. Census Bureau worker comes to your home and asks for personal information.

Here is how this scam works
A scammer comes to your home and pretends to be a U.S. Census worker. The scammer asks you for personal information, such as your social security, bank account, or credit card number, and then uses that information to steal your identity.

Be Smart, Be Safe, Be Heard!
Between May 2010 and July 2010, U.S. Census Bureau field representatives will knock on the door of every household that does not mail back a completed 2010 Census form.

A legitimate Census Bureau representative will:

  • Never contact you by e-mail;
  • Never solicit for donations;
  • Never ask for your social security, bank account, or credit card number.

The Census Bureau representative that comes to your door must:

  • Present an ID badge that contains a Department of Commerce watermark and expiration date;
  • Provide you with supervisor contact information and/or the Regional Office phone number for verification, if asked;
  • Will provide you with a letter of confidentiality from the Census Bureau;
  • May be carrying a laptop computer and/or bag with a Census Bureau logo

To report this scam, contact the U.S. Census Bureau at 301-763-INFO.

Certificate of Deposit (CD) Scam

A scammer sells you certificates of deposit (CD) that are not what they seem.

Here is how this scam works
A scammer offers to sell you certificates of deposit that earn interest at a far better rate than CDs currently being sold by banks and other financial institutions. The scammer claims that the CDs are federally-insured. The scammer turns out to be a representative of an insurance or financial services company, not a federally-insured financial institution. The CDs you buy are not insured.

Be Smart, Be Safe, Be Heard!

  • Understand that only deposits made in Federal Deposit Insurance Corporation (FDIC) member banks and financial institutions are guaranteed in any way.
  • Contact the FDIC to verify that the CD seller is a member bank or other legitimate financial institution.

To report this scam, contact the Federal Deposit Insurance Corporation at 1-877-ASKFDIC.

Disaster Relief Scam

A scammer offers to help you collect "your share" of disaster relief funds or asks for a donation to help victims of a recent natural disaster, then disappears with the money.

Here is how this scam works
A scammer e-mails, calls, or sends a letter asking you to donate money to help victims of a recent fire, earthquake, flood or other natural disaster. The scammer asks you to send cash or asks you to give your bank, credit card or other personal information. The scammer disappears with your cash or uses your personal information to access your account or steal your identity. 

Be Smart, Be Safe, Be Heard!

  • Resist the pressure to act immediately.
  • Beware of appeals that are long on emotion and short on details.
  • Listen closely and beware of "copycat" names that sound like reputable charity organizations.
  • Don't donate in response to e-mail solicitations. Clicking on a Web site link in an e-mail may lead you to a site that looks real but was created by identity thieves.
  • Request that information be mailed to you before you donate.
  • Avoid sending cash or giving personal or financial information.
  • Verify that the charity is legitimate.
  • Seek out known organizations and give directly or the through the organization's official Web site.
  • Make checks payable to the charitable organization, not to the solicitor.

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

eBay Second Chance Scam

A scammer offers losing eBay auction bidders a second chance to buy the merchandise they wanted.

How this scam works
A scammer poses as an eBay auction seller and announces that the winning bid for an auction item fell through. The scammer then offers losing bidders another chance to purchase the merchandise by wiring money to an e-mail address not associated with eBay. The second chance bidder ends up paying for a product that will never arrive.

Be Smart, Be Safe, Be Heard!

  • Make all of your eBay transactions through the official eBay Web site. Using the site affords you certain protections, like the eBay feedback system or the buyer protection program.
  • Don't wire money to a seller. Use a payment method specifically designed for Internet auction sites, like PayPal or BidPay.
  • Don't send money to anyone who contacts you and offers to sell you an item on which you unsuccessfully bid.
  • Report suspected fraudulent activity to eBay's customer support. This includes reporting anyone who asks you to buy or sell eBay items off-site.

To report this and other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

Economic Stimulus Scams

Economic stimulus scams come in many forms. Here is how they work.

Online Ads
A scammer posts an online ad on many Internet sites, including social network sites like Facebook, Twitter, and MySpace.The ads promise money that is said to be part of the economic recovery stimulus. The scammer asks you to make a small payment using a credit card, then subjects that account to various or ongoing charges.

Stimulus Grant Websites
A scammer creates a Web site that promises free stimulus grant money. The site offer informative CDs and books on how to receive free stimulus and government grant money. The site operators charge the consumer a "shipping and handling" fee of between $1.00 and $4.00 to receive the information.  Buried deeply in the "Terms and Service" is a re-occurring monthly charge of anywhere between $30.00 and $70.00 as well as enrollment in a trial period with other related Web sites. These sites charge an additional monthly fee if service is not cancelled. Total monthly fees can exceed $100.00 a month for access to the Web site and grant information.

Stimulus Fund Emails
A scammer sends an email claiming that you qualify to receive stimulus money or directs you to a Web site to learn how to qualify. In both cases, you are urged to click on links to get additional information. When you begin clicking on the links, you are downloading spyware or software that can be used to steal your identity.

Stimulus Check Hold
A scammer contacts you, claims to be an IRS representative, and urges you to respond promptly with personal financial information or risk forfeiting your stimulus money. Once you provide the information requested, the scammer uses it to steal your identity.

Recovery Act: One Time Payment of $250
A scammer emails or calls a senior who receives federal benefits such as Social Security.  The scammer claims to be from the IRS or Social Security Administration and asks for the senior's Social Security number, bank account information, or credit car number so that stimulus money can be deposited directly. The scammer then uses that money to steal the senior's identity.

Small Business Tax Rebate
A scammer contacts a small business, claims to be from the Small Business Administration, and states that the business might be eligible to receive a tax rebate under the stimulus plan. To determine eligibility, the company is asked to fill out an authorization form that includes, among other things, bank account information. The scammer then uses that bank information to access the account and steal money.

Be Smart, Be Safe, Be Heard!

  • Understand that the American Recovery and Reinvestment Act of 2009 (also known as the stimulus package) will distribute money to eligible consumers in the form of tax credits, not cash.
  • Contact the U.S. government to learn more about how the stimulus package will affect you.
  • Learn how to spot and avoid stimulus scams.

To report this and other scams, contact the Federal Trade Commission at call 1-877-FTC-HELP.

Employment Scam

A scammer offers a job opportunity that involves little work and high pay.

How this scam works
A scammer offers you a work-at-home opportunity that promises high pay for easy work. These scams may involve vending machines, display racks, pay phones, medical billing, envelope stuffing, and Internet-related business opportunities.
The job and pay are not what the scammer presented to you. You discover that you must purchase expensive equipment or supplies needed to do business, you are paid with a check that bounces, or you are not paid at all.
Sometimes a scammer will pose as a representative of an employment agency and ask you for money for testing, training, a background check or application processing. The scammer then takes your money and provides nothing in return.

Be Smart, Be Safe, Be Heard!

To report this and other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

Fake Check Scam

A scammer gets you to unknowingly deposit a bad check into your account and then cover it with your own funds.

How this scam works
A scammer asks you to deposit a check into your account and then wire the money to someone else, often overseas. You make the transactions. When the bank discovers the fraud, the check bounces and the bank holds you responsible for the funds that were wired overseas.

Be Smart, Be Safe, Be Heard!

  • Avoid accepting checks from anyone you don't know personally.
  • Understand that even bank tellers can be fooled by fake checks.
  • Know that even if your bank allows you to use money from the check you deposited, that does not mean the check is good.
  • Know that you are responsible for all checks you deposit.
  • Understand that there is no legitimate reason for someone who is giving you money to ask you to wire money back.

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

Foreclosure Rescue/Loan Modification Scam

A scammer offers to help you avoid home foreclosure for a fee then disappears with your money and provides no service.

Here is how this scam works
A scammer offers to help you avoid foreclosure by renegotiating the terms of your existing home loan to either lower your monthly payment or lower your loan payoff amount. The scammer tells you not to contact your bank, loan servicer or lawyer. The scammer requires you to pay a fee before providing any service. The scammer may ask you to sign documents that unknowingly transfer title of your property to the scammer. The scammer disappears with your fee without doing any work on your behalf or takes legal ownership of your home.

Be Smart, Be Safe, Be Heard!

  • Contact your lender immediately if you are having trouble making your mortgage payments.
  • Don't ignore letters from your lender or loan servicer.
  • Don't pay up-front fees for foreclosure rescue or loan modification services. Foreclosure consultants are prohibited by law from collecting money before services are performed.
  • Don't transfer title or sell your home to a "foreclosure rescuer".
  • Don't pay mortgage payments to anyone other than your lender or loan servicer.
  • Don't sign any documents that you have not read or don't fully understand.
  • Don't sign anything containing blanks that you are told will be filled in later.
  • Contact a housing counselor approved by the U.S. Department of Housing and Urban Development for free assistance or call 888-995-HOPE.

If you have become a victim of this scam:

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

Grandparent Scam

A scammer claims to be a grandchild in trouble and gets you to send money.

Here is how this scam works
A scammer contacts an elderly person and claims to be a grandchild who needs cash because of a recent automobile accident, hospitalization, arrest, or other unfortunate event. The scammer often states that they are allowed only that one phone call. The elderly person is asked to wire, overnight mail or courier money immediately and to keep the call a secret from other family members to reduce embarrassment. The scammer pockets the money and disappears.

Be Smart, Be Safe, Be Heard!

  • Verify the caller's identity by asking personal questions that a stranger could not answer.
  • Resist the pressure to act immediately.
  • Call someone you know and trust to help verify the story.
  • If you can't verify the story, call your local police on the non-emergency line to help you sort things out.
  • Avoid sending money by immediate overnight service. The scammer will have your money before realize that you have been cheated.
  • Avoid giving your credit card or bank information to anyone you don't know personally.

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

H1N1 Virus Scam

A scammer sells you worthless products to protect you from the H1N1 (swine flu) virus.

Here is how this scam works
A scammer strikes fear into you by telling you about the danger of catching the H1N1 (swine flu) virus. The scammer then sells you prevention products that do little or no good.

Be Smart, Be Safe, Be Heard!

  • Contact the California Department of Public Health to learn the facts about the H1N1 virus, preventive measures you can take, and the vaccine that is available.
  • Purchase only FDA-approved products from licensed pharmacies located in the United States.
  • Contact your health professional if you have questions or concerns about medical products or personal protective equipment.

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

Health/Medical Scam

A scammer sells products that cannot back their claim of being medically effective or beneficial to health.

How this scam works
A scammer sells medications, vitamin supplements, exercise equipment or other products that claim to help you lose weight, clear your skin, stop snoring, eliminate cellulite, or provide other health or medical benefits. These products have not been proven safe or effective. Besides providing no real benefit, these products can be detrimental to your health.

Be Smart, Be Safe, Be Heard!

  • Talk to your doctor before using any new nonprescription medication, supplement or medical device.
  • Contact the Food and Drug Administration before you use any off-the-shelf health product and to learn about health fraud or call 1-888-463-6332.

Report problems with food, drugs, medical devices, cosmetics or tobacco to the Food and Drug Administration at 1-800-332-1088.

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

Health Fraud Awareness Video

This U.S. Food and Drug Administration video helps consumers learn how to spot and avoid health fraud. Health Fraud Awareness (video) video camera icon

Internal Revenue Service (IRS) Scam

A scammer claims to represent the IRS and gets you to reveal personal or financial information that is used to steal your identity.

Here is how this scam works
A scammer claiming to be a representative of the Internal Revenue Service (IRS) contacts you by phone or by e-mail. The scammer asks you to give personal or financial information so that your tax status, recent filing, or other tax matters can be verified. The scammer then uses the information you give to steal your identity.

Be Smart, Be Safe, Be Heard!

  • Understand that the IRS will not initiate contact by phone or by email.
  • Understand that the IRS will not ask you to reveal personal or financial information in this manner.
  • Avoid giving your personal or financial information to anyone you don't know personally.
  • View the IRS video.

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

Jury Duty Scam

A scammer tells you that you missed jury duty and gets you to reveal personal or financial information.

Here is how this scam works
A scammer contacts you by phone or by e-mail and claims to be a court employee. The scammer tells you that you missed mandatory jury duty. The scammer may scare you by talking about possible fines and penalties for having failed to appear. The scammer asks you to give your social security number, date of birth and other personal information so they can verify that the jury duty notice was sent to you. The scammer then uses the personal information you give to steal your identity.

Be Smart, Be Safe, Be Heard!

  • Understand that a court employee will not initiate contact by phone or by e-mail.
  • Avoid giving your personal information to anyone you don't know personally.
  • Call the court to ask whether you missed jury duty. The number can be found in the government listings of your local phone book.

If you have become the victim of this scam, contact the Office of the Attorney General.

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

Lottery Scam

Lottery scams come in many forms. Here is how they work:

Lottery Scam
A scammer sends you an email or letter that says that you won the lottery. The correspondence may include the California Lottery, Super LOTTO Plus or MEGA Millions name and logo. The scammer claims that you must pay processing fees or taxes before you can collect your prize. The scammer may ask you to send money or direct you to a Web site to enter your bank account information so that the fees can be withdrawn from your account or your winnings can be deposited directly. The scammer then disappears with your money, uses your account information to steal your identity, and leaves you waiting for a prize that will not arrive.

Be Smart, Be Safe, Be Heard!

  • Understand that you cannot win a lottery that you did not enter.
  • Understand that there is no processing fee associated with a legitimate lottery.
  • Understand that only a government agency can collect taxes.
  • Beware of Web sites that sound legitimate. The California Lottery's only official Web site is www.calottery.com

Latin Lottery Scam
A scammer approaches you at a home improvement store, shopping mall, grocery store, hospital, parking lot or other public location. They tell you a sad story that is likely to include one or all of the following:

  • A claim that they cannot collect their lottery prize because they are not a U.S. citizen.
  • An offer to call the Lottery to verify theirs is the winning ticket.
  • A claim that they need money to collect the prize and an offer to share the prize with you if you help.
  • A claim that they need to return immediately to their country to deal with a family emergency.

Be Smart, Be Safe, Be Heard!

  • Understand that you do not need to be a U.S. citizen to claim a California lottery prize.
  • Don't let them make the call to the Lottery using their phone. Use your own phone to make the call.
  • Understand that the California Lottery does not require any money up front to claim a prize.
  • Avoid emotional appeals and pleas for immediate help.

International Lottery Scam
A scammer promises a huge reward if you help get money that is rightfully his/hers out of their homeland, often Nigeria or some other foreign country. The scammer tells you that fees or taxes need to be paid so that the government will release the money. You are asked to pay the amounts owed and told that you will be reimbursed and be paid a large reward for having helped. The scammer often asks for your bank account number so that the money can be deposited directly into your account. The scammer then disappears with your money and uses the information you give to access your account or steal your identity.

Be Smart, Be Safe, Be Heard!

  • Ask yourself why a complete stranger would contact you and ask for this kind of help.
  • Avoid appeals for money that are long on emotion and short on detail.
  • Do not agree to meet with someone who contacts you in this manner.
  • Avoid doing business on behalf of someone you don't know personally.
  • Avoid giving personal or financial information to someone you don't know personally.
  • If you have lost money to one of these scams, call your local Secret Service field office which is listed in the Blue Pages of your telephone directory.

Unclaimed Prize Scam
A scammer sends you an email regarding unclaimed funds or prizes from the California Lottery. The email may ask you to contact a designated person and give personal or bank account information so that your prize can be processed and the money can be transferred into your account. The information you give is then used to steal your identity.

Be Smart, Be Safe, Be Heard!

  • Be aware that these emails are not authorized, sanctioned, or in any way related to the operation of the California Lottery.
  • Understand the California Lottery never sends unsolicited emails, and never transacts business through email.
  • Understand that you cannot win a lottery that you did not enter.

To report scams involving the California Lottery, contact the California Lottery’s Security Law Enforcement Division at 1-800-LOTTERY.

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

Memorabilia/Collectable Scam

A scammer rips you off when you buy memorabilia or collectable items.

Here is how this scam works
A scammer sells you sports, celebrity, political or other memorabilia or collectible item. The item turns out to be fraudulent, different than advertised, unsubstantiated as authentic, substantiated as authentic using a forged letter or fake certificate, or sold at a highly-inflated price.

Be Smart, Be Safe, Be Heard!

  • Remember that if an offer or an item sounds too good to be true it probably is.
  • Understand that fake memorabilia and collectable items are often recognizable to only the expert eye.
  • Know that anyone can forge a letter verifying an item’s value.
  • Know that fake certificates of authenticity can be downloaded from the Internet.
  • Remember to check for negative feedback about the seller before making a purchase on an Internet auction site.

To report this scam, contact the online auction site and the Federal Deposit Insurance Corporation or call 1-877-ASKFDIC.

Phishing/Spoofing Scam

A scammer sends an e-mail to your computer that looks like it came from your bank ...

How this scam works
A scammer sends an e-mail that looks like it came from your bank, a government agency, or other entity with which you do business. The e-mail provides a link to a Web site. You are instructed to follow the link to the site and to validate or re-enter personal or financial information that was lost or compromised in some manner. Once you input your confidential information, it is in the hands of the scammer who uses it to access your account or steal your identity.

Be Smart, Be Safe, Be Heard!

  • Don't click on Web site links included in unsolicited e-mails.
  • Remember that legitimate companies and government entities don't send unsolicited e-mails asking for confidential information.
  • Keep your computer’s spam-blocking software up to date.
  • Don't give personal or financial information to anyone you don't personally know.

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

Property Tax Reassessment Scam

A scammer contacts you and promises a property tax reduction.

How this scam works
A scammer sends you an official-looking form that promises a property value reassessment and lower annual tax bill. The mailing urges you to act fast and claims there is a deadline to request reassessment and even a late fee for not responding on time. The form requests personal or financial information. When the scammer receives your form, the information it contains is used to access your account or steal your identity.

Be Smart, Be Safe, Be Heard!

  • Avoid responding to official-looking forms that promise a property tax reduction.
  • Avoid responding to instructions to "act fast".
  • Do not pay someone for services the government provides for free.
  • Contact your County Assessor to learn more about property tax reassessment. You can find the phone number on your annual tax bill or in the county government listings in your local telephone directory.

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

Pyramid/Ponzi Scam

A scammer gets victims to invest money in a program that provides no product or service and cannot sustain itself.

How this scam works
A scammer gets participants to invest money in a program that will pay dividends when the investor recruits a certain number of new investors.; "Old" investors are paid using the investments made by "new" investors. When the scheme gets too big and there are too many investors to pay and not enough money with which to pay them, the program folds.

Be Smart, Be Safe, Be Heard!

  • Beware of plans that claim you will make money based on the investors you recruit.
  • Avoid pressure to invest quickly.
  • Talk with a knowledgeable friend, accountant or lawyer before you invest.
  • Contact the Better Business Bureau to research the investment firm.

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

Rental Scam

Scammers accept your deposit on a home rental they do not own or manage.

How this scam works
A scammer finds listings of for-sale properties, gains access, and then poses as the property owner or landlord. When you respond to the scammers "for rent" advertisement, the scammer collects a security deposit or rent payment. The scammer may ask you to complete an application which asks for confidential information, and may even offer keys to a vacant home on which new locks have been installed. The scammer walks away with your money or uses the information you've given to access your account to steal your identity.

Be Smart, Be Safe, Be Heard!

  • Meet in person with prospective landlords or property managers and ask for identification.
  • Contact the County Assessor's office to verify the property owner before you pay a deposit or complete a rental application. The phone number can be found in the County government listings of your local phone directory.
  • Research comparable rents in the area and be suspicious of properties for which rent is unusually low.

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

Reshipping scam

A scammer offers you the opportunity to get paid for receiving shipment of merchandise at home and then reshipping the packages to another location.

How this scam works
A scammer offers you a job that involves high pay in exchange for little work, like receiving merchandise that is shipped to your home and then reshipping it to another location. The merchandise you ship has often been stolen or purchased using fraudulent credit cards.

Be Smart, Be Safe, Be Heard!

  • Understand that if a work-at-home opportunity sounds too good to be true, it probably is. Many work-at-home offers are scams.
  • Understand that you could be charged as an accessory to a crime if it turns out you are shipping stolen merchandise.

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

Scholarship Scam

A scammer offers to help you find educational grants or scholarships for a fee but provides no service.

Here is how this scam works
A scammer offers to help find educational grants and scholarships for which a student qualifies. The scammer may claim to represent the U.S. Department of Education. The scammer asks you to pay a fee before providing the service. The scammer may also ask you to provide credit card information so that the "processing" or "search" fee can be deducted from your account. The scammer fails to deliver the service promised, disappears with fees you've paid and/or uses the information you've given to access your account or steal your identity.

Be Smart, Be Safe, Be Heard!

  • Avoid paying for services that are available for free.
  • Avoid giving personal or financial information to someone you don't know personally.
  • Research an unfamiliar organization that invites you to attend a financial aid "interview" or "seminar" to make sure they are legitimate before attending.
  • Don't believe someone who tells you the information they offer cannot be found anywhere else.
  • Check with your high school counselor or college financial aid officer to find legitimate scholarship sources.
  • Contact the U.S. Department of Education to learn more about financial aid and financial aid scams.

Sweepstakes Scam

A scammer offers a large cash prize but requires a fee for delivery.

How this scam works
A scammer advertises a sweepstakes with a large cash prize. The scammer may use contest entry information to send unrelated advertisements to sweepstakes entrants. In some cases, sweepstakes "winners" are told they have to pay a fee or taxes before claiming the prize. Once the fees or taxes are paid, no prize is ever delivered.

Be Smart, Be Safe, Be Heard!

  • Understand that legitimate sweepstakes never require a purchase to participate or a fee to receive a prize.

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

Telemarketing Scam

A scammer uses the telephone and false and misleading statements to get you to buy, donate, invest, or reveal confidential information.

How this scam works
A scammer calls poses as a foreign lottery official, charity worker, business person or family member. The scammer then makes false and misleading statements to get you to buy goods or services, donate funds to a charitable organization, invest in a business venture, or help a family member is distress.
The scammer may try to get you to reveal personal or confidential information that can then be used to access your account or steal your identity.

Be Smart, Be Safe, Be Heard!

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.

Twitter-for-Money Scam

A scammer offers to pay you generating "tweets" from home and gets you to reveal personal or financial information.

Here is how this scam works
A scammer offers you the opportunity to earn money by "tweeting" from home. The scammer tells you that you must purchase informational material, a start up kit, or a membership. The scammer asks for your credit card information so that the fees can be deducted from your account. The scammer then uses the information you give to access your account or steal your identity.

Be Smart, Be Safe, Be Heard!

  • Understand that if a job opportunity sounds too good to be true it probably is.
  • Avoid work-at-home schemes that charge an up front or monthly fee.
  • Avoid giving personal or financial information anyone you don't personally know.
  • Contact the Better Business Bureau to learn more about this scam

To report this and other scams, contact the Federal Trade Commission at call 1-877-FTC-HELP.

Unlicensed Contractor Scam

Unlicensed contractor scams come in many forms.

How these scams work

Door-to-Door Solicitation
A dishonest or unlicensed contractor comes to your door and offers to do roofing, painting, paving, or other work at a reduced price. Once payment is made, little or no work is done and the project is abandoned.

The Fear Factor
A dishonest or unlicensed contractor offers to perform a free home inspection and then claims that faulty wiring, bad plumbing, a leaky roof or other problem puts you and your home in peril. The alarmed homeowner agrees to unnecessary work, overpriced work, or work that must be done by a licensed contractor.

Demand for cash
A dishonest or unlicensed contractor insists on cash payments for work to be performed. The scammer then takes the money and runs.

Illegally large down payments
A dishonest or unlicensed contractor takes more for a down payment than is allowed by law, claiming to need cash for supplies and to pay workers. The scammer may disappear without doing any work.

Verbal-Only agreements
A dishonest or unlicensed contractor states that a written contract isn't needed and promises to deliver work based on the verbal agreement between you. The scammer then uses substandard materials, performs shoddy work, or does no work at all.

Be Smart, Be Safe, Be Heard!

  • Get and compare job estimates from at least three contractors.
  • Know that a contractor must be licensed if the job is valued at $500 or more (including labor and materials).
  • Contact the Contractors State License Board to verify the license of any contractor you consider hiring at 916-321-CSLB.
  • Don't sign a contract until you have read it and fully understand it.
  • Know that the law requires your down payment to be no more than 10 percent of the total project price or $1,000, whichever is less.

To report contractor scams, contact the Contractors State License Board at call 916-321-CSLB.

Vishing Scam

A scammer entices you to reveal confidential information that can be used to steal your identity and your money.

How this scam works
A scammer sends a recorded message, e-mail, or text message to your cell phone that looks like it came from your bank, a government agency, or other entity with which you do business. The message directs you to call a toll-free number then to use your phone's key pad to enter your credit card or other personal information, or to give your personal information to a live agent. Once you input or give your personal information, it is in the hands of the scammer who uses it to access your account or steal your identity.

Be Smart, Be Safe, Be Heard!

  • Don't respond to messages if you are unsure whether they are legitimate.
  • Remember that legitimate companies and government entities don't ask for confidential information by phone.
  • Join the National Do Not Call Registry.
  • Don't give personal or financial information to anyone you don't personally know.

To report this or other scams, contact the Federal Trade Commission at 1-877-FTC-HELP.