On September 29, 2020, the Department of Business Oversight was renamed the Department of Financial Protection and Innovation. You might remember that before the DBO name was established, the Department was known as the Department of Corporations for many decades. The DFPI regulates many services in California.
According to Wikipedia:
“The DFPI protects California consumers and businesses by regulating financial services, overseeing state-chartered financial institutions, licensing financial service providers, combating fraud, and promoting responsible innovation in the financial marketplace.”
This week I received the DFPI’s monthly bulletin. Very interesting, informative, and long. The Sections listed include License Activity, DFPI News, Press Releases and Consumer Alerts, Escrow News, and Education Events.
There are three items that anyone in Real Estate should read:
DFPI Cracks Down on Illegal Activity
The DFPI continues its aggressive enforcement efforts against companies and individuals violating California financial laws. These actions are a reminder that regulators are actively monitoring the marketplace and protecting consumers from fraudulent or deceptive practices. Staying informed about these enforcement actions can help you recognize warning signs before they affect your business.
DFPI Secures $7 Million for Consumers
One of the biggest stories in the bulletin highlights the DFPI’s successful enforcement action that resulted in nearly 3,000 consumers receiving more than $7 million in restitution following a California land investment securities fraud scheme. Many of the victims were members of California’s Filipino, Chinese, and Hispanic communities. This case demonstrates the important role the DFPI plays in protecting investors and holding bad actors accountable.
Cybersecurity: Report Incidents Promptly
Cybercrime continues to be one of the fastest-growing threats facing businesses—including real estate brokerages, mortgage companies, escrow firms, and title companies. The DFPI has created an online Cybersecurity Incident Report Form to help licensees report these incidents. Completing the form helps them work quickly to contain the incident and protect assets, data, and stakeholders.
Free Consumer Education Event
The bulletin also highlights an upcoming DFPI educational presentation focused on protecting yourself from scams and fraud. The workshop explains how today’s tech support scams operate and offers practical tips to recognize and avoid becoming a victim. These free educational events are an excellent resource—not only for consumers but for real estate professionals who want to better educate their clients.
There is plenty of valuable information in every monthly DFPI Bulletin. I encourage you to take a few minutes each month to review it. The company you save may be your own.
For the complete August Bulletin, visit:
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