California Must Smartly Confront the Growing Crisis of Online Fraud

At California Consumer Voice, we believe everyday Californians deserve a fair shake. Our mission is to inform, empower, and advocate for consumers across the state, ensuring their voices are heard when policy decisions affect their lives. That mission has never been more urgent than today, as Californians face a fast-growing and invisible threat: online fraud.

What used to be an occasional robocall or easy-to-spot email has exploded into a multibillion-dollar crime ecosystem run by sophisticated criminal networks. From phishing emails and romance scams to imposter calls and toll fraud, online scams are stripping billions of dollars from hardworking Californians every year. These crimes don’t just steal money. They undermine confidence, corrode trust in technology, and leave victims feeling isolated and ashamed.

The scope is staggering. In 2023 alone, Americans lost more than $159 billion to fraud, with the average victim losing tens of thousands of dollars. California—home to the world’s tech capital—has become a prime target. Many of these scams are run by transnational criminal groups using trafficked labor abroad and advanced technology to mask their tracks.

Too often, the burden created by these crimes is dumped on consumers or other stakeholders while crooks are an afterthought. Californians are told not to click suspicious links or simply to hang up on unknown calls. Technology companies and financial institutions are told the problem is theirs to solve.

Those messages are not good enough. Telling Californians to “be more careful” is like telling neighborhoods plagued by burglars to simply lock their doors tighter.

Leaving single industries to clean up after these crimes does not stop them from happening in the first place. Without systemic protections, individuals will keep losing.

California must act with urgency. Just as we’ve led on consumer rights in healthcare, housing, and financial services, we should lead on protecting people from digital fraud. That means moving beyond warnings and awareness campaigns to real solutions to target the crooks.

Here are some ideas for California’s state and federal leaders to explore:

• First, establish a state and federal task force to coordinate various agencies and law enforcement. Fraud doesn’t respect jurisdictional boundaries, and fragmented responses only help scammers.
• Second, empower law enforcement. Online fraud rings should be pursued with the same seriousness as drug cartels and trafficking networks. With proper funding, training, and tools, we can dismantle scam operations instead of watching them proliferate.
• Third, create a centralized reporting and support system for victims. Right now, people waste precious time trying to figure out whether to call local police, their bank, or a federal agency. A single point of contact would help victims recover while giving authorities a clearer picture of the problem.

Everyday Californians deserve more than hollow warnings and victim-blaming. They deserve protection and leaders willing to take on organized fraud networks with the same determination we bring to any other threat to our communities.

California Consumer Voice was founded on the principle that this state should work for everyone, not just the powerful. That principle must guide us now. It’s time for California lawmakers to take online fraud as seriously as it deserves. Consumers across our state are counting on it.