Don’t let fear lead to fraud: how immigrants can keep their money safe

Like most consumers across California, immigrants use financial services and borrow money to conduct their daily lives, start businesses, purchase automobiles, and buy homes. Unfortunately, their financial experiences may differ significantly.

Recent escalations in Immigration and Customs Enforcement (ICE) operations — ranging from targeted agricultural sweeps in California’s Central Valley to reported stops in urban areas — are causing widespread anxiety. This rising fear causes many immigrants to avoid traditional banks and credit unions, preferring informal or alternative payment systems, often with limited oversight. As a result, immigrant consumers are increasing relying on more expensive, and sometimes predatory, financial products and services.

Don’t let fear lead to fraud. Learn how to identify common scams that target immigrants and keep your money safe:

• Imposter ICE scams: Fraudsters pretending to be ICE agents may demand “bond payments” or personal data. Know your rights as immigrants.
• Immigration scams: Scammers use the confusion around the immigration process, or the urgency of an arrest, to take advantage of people looking for help. Tips to avoid immigration scams.
• Cultural Affinity Scams: Scammers may use trusted advisors and communities, like Spanish-speaking TV and radio personalities or churches, to entice you into investing with them. Be cautious of any offers that target specific cultural identities or language groups, especially if they try to get you to recruit your family members, friends, and neighbors to participate in their investment opportunity.
• Advance-fee loan schemes: Scammers promise quick loans with high upfront charges, preying on those with little or no credit. Always research lenders and avoid those that make unrealistic promises, like guaranteeing credit regardless of your credit history.
• BNPL and crypto lender schemes: Emerging Buy Now, Pay Later (BNPL) and decentralized crypto lending platforms lure users with promises of speed while layering on steep interest rates, high transaction fees, and confusing terms.
• Authorized push payment fraud: Real-time money transfers via payment apps, like Venmo or PayPal, can be exploited by scammers. Once the money is sent, it’s nearly impossible to reverse.
• Money transmitter fraud: Many immigrants rely on remittance transfers for day-to-day expenses or time-sensitive emergencies. Be wary of “no fee” or “free” services. Know what you are agreeing to before transmitting any money. The provider may add nondisclosed fees or make up the difference through the exchange rate spread. Also note that the “One Big, Beautiful Bill Act” that takes effect Jan. 1, 2026, will impose a 3.5 percent excise tax on cash-based remittances, including checks and money orders.
• Cash-only transactions: Increase the risk of theft and offer no recourse in case of loss.

To prevent fear from turning into financial exclusion and exploitation, we need your help. If you spot or have been a victim of an immigrant-related financial scam, you are encouraged to submit a complaint with us. The more information we have, the better we can identify patterns, link cases, and ultimately catch the criminals.

If English is not your preferred language, we offer translation services in more than 240 languages. For assistance, call 866-275-2677.