Texas Scam and Fraud Laws: Where to Report, Your Right to Sue (2026)

Texas gives a scam victim who qualifies as a "consumer" (someone who sought or acquired goods or services by purchase or lease) a state-law right to sue under the Deceptive Trade Practices-Consumer Protection Act (DTPA). A consumer who wins recovers economic damages, a court must also award reasonable attorney's fees and costs, and if the jury finds the conduct was knowing or intentional it may award up to three times the damages. The catch: you need someone to sue, you must usually send 60 days' written notice first, and the clock runs out two years from the deception or its discovery.

Texas also lets a bank put a hold on a transaction from an older or disabled customer's account once it has reported suspected financial exploitation to the state, and Texas law requires anyone who thinks a vulnerable adult is being financially exploited to report it. Complaints about scams go to the Texas Attorney General, but the office says it reviews them for information and may not contact you again.

Information last verified on October 2, 2026. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This guide covers Texas state law: the DTPA (Texas Business and Commerce Code chapter 17), Texas complaint offices, Texas protections for older and disabled adults, the Texas Anti-Phishing Act, and Texas court deadlines for suing. Federal refund and reporting rights are summarized briefly and covered in depth on our national guides. Out of scope: criminal defense, and the law of other states (if the scammer or business is elsewhere, that state's law may also matter).

First steps if you were scammed in Texas

Contact the bank, card issuer, payment app, wire company or crypto exchange that moved your money right away, since that company is usually the one that can stop or reverse a payment. Your federal rights depend on how you paid; our guide on how to get money back after a scam walks through each payment method, and the Zelle and payment app guide covers app transfers.

Then report the scam. Most scams go to the FTC at ReportFraud.ftc.gov and online crime to the FBI's IC3; our where to report a scam guide lists every federal channel. The Texas offices below are in addition to those, not instead of them.

Where to report a scam in Texas

The Attorney General's form covers a long list of problems. Its own examples include "not receiving what you paid for, billing or refund issues, misleading advertising, predatory sales tactics, unlawful debt collections, scams, price gouging." Two cautions from the form itself: do not include your date of birth, Social Security number, government ID or financial account numbers, and "under Texas law your complaint is open to the public."

Be realistic about what an Attorney General complaint does. The office says: "Unless further information is needed, you may not be contacted by our office again regarding your complaint. Your complaint will be reviewed for informational purposes, helping the Attorney General monitor consumer protection issues throughout the State of Texas." It is a report, not a refund request. If you want your money back from a business, the payment company and the DTPA (below) are the routes that can produce it.

Texas's consumer protection law: can you sue?

Yes, in the right case. The DTPA lets a "consumer" bring a private lawsuit. Section 17.50(a) lists what can support one:

"A consumer may maintain an action where any of the following constitute a producing cause of economic damages or damages for mental anguish: (1) the use or employment by any person of a false, misleading, or deceptive act or practice that is: (A) specifically enumerated in a subdivision of Subsection (b) of Section 17.46 of this subchapter; and (B) relied on by a consumer to the consumer's detriment; (2) breach of an express or implied warranty; (3) any unconscionable action or course of action by any person; or (4) the use or employment by any person of an act or practice in violation of Chapter 541, Insurance Code."

Read the first ground closely, because both parts are required. The deceptive act must be one of those specifically listed in section 17.46(b), and you must have relied on it to your detriment. The third ground, an unconscionable action or course of action, does not carry those two requirements in the text of section 17.50(a).

"Consumer" is a defined term in the DTPA: under section 17.45(4) it means someone who "seeks or acquires by purchase or lease, any goods or services," and the act has exclusions. A victim who simply sent money to an impostor, without seeking or buying goods or services, may not fit that definition. Whether a particular scam victim counts as a consumer, and whether a particular trick appears on the section 17.46(b) list, depends on the facts. A Texas lawyer can tell you whether your situation fits.

What you can recover

Under section 17.50(b), each consumer who prevails may obtain economic damages, plus more when the jury finds the conduct was knowing or intentional:

"If the trier of fact finds that the conduct of the defendant was committed knowingly, the consumer may also recover damages for mental anguish, as found by the trier of fact, and the trier of fact may award not more than three times the amount of economic damages; or if the trier of fact finds the conduct was committed intentionally, the consumer may recover damages for mental anguish, as found by the trier of fact, and the trier of fact may award not more than three times the amount of damages for mental anguish and economic damages"

Two points matter. The extra damages depend on a finding that the defendant acted knowingly or intentionally; ordinary deception alone yields economic damages. And the multiplier is a ceiling the jury "may" award, not an automatic tripling. The court can also order the defendant to stop, and order money or property taken in violation of the law restored.

Attorney's fees are different: they are mandatory for a winning consumer. Section 17.50(d) says: "Each consumer who prevails shall be awarded court costs and reasonable and necessary attorneys' fees." The risk runs the other way too. Under section 17.50(c), the defendant can recover its fees if the court finds the suit was "groundless in fact or law or brought in bad faith, or brought for the purpose of harassment."

The 60-day notice

Before suing for damages, section 17.505(a) requires that "a consumer shall give written notice to the person at least 60 days before filing the suit advising the person in reasonable detail of the consumer's specific complaint and the amount of economic damages, damages for mental anguish, and expenses, including attorneys' fees, if any, reasonably incurred by the consumer in asserting the claim against the defendant."

There is an exception. Under section 17.505(b), notice is not required in advance if giving 60 days' notice is impracticable because suit must be filed to prevent the limitations period from expiring. If a consumer skips required notice, the remedy in the statute is that the case is paused (abated), not thrown out.

The deadline

Section 17.565 sets the clock: a DTPA suit "must be commenced within two years after the date on which the false, misleading, or deceptive act or practice occurred or within two years after the consumer discovered or in the exercise of reasonable diligence should have discovered the occurrence." The period "may be extended for a period of 180 days if the plaintiff proves that failure timely to commence the action was caused by the defendant's knowingly engaging in conduct solely calculated to induce the plaintiff to refrain from or postpone the commencement of the action."

Because the notice period is 60 days, a consumer who waits until the last weeks of the two years may need the impracticability exception. Do not count on it; act early.

The honest limit

A DTPA case needs a defendant you can identify, serve and collect from. That often works against a Texas business, a contractor or a seller with a real address. It usually does not work against an anonymous scammer who called from a spoofed number or vanished with crypto, and a court judgment does not help if nobody can be found to pay it.

Protections for older adults in Texas

It is a felony. Texas Penal Code section 32.53 makes it an offense to "intentionally, knowingly, or recklessly" cause "the exploitation of a child, elderly individual, or disabled individual," and the offense is a felony of the third degree. Exploitation means the illegal or improper use of the person or their resources "for monetary or personal benefit, profit, or gain."

You must report it. The state's protective services agency says: "If you think a vulnerable adult is being abused, neglected, or financially exploited, Texas law requires you to report it to DFPS." Call 1-800-252-5400; the agency's page also has a Spanish-language link.

Banks must report, and can hold the money. Under Texas Finance Code section 281.002, a bank or credit union employee who suspects financial exploitation of a vulnerable adult must notify the institution, and the institution "shall assess the suspected financial exploitation and submit a report" to DFPS, not later than the earlier of when the assessment is finished or the fifth business day. Under section 281.004, once it has reported, the institution may place a hold on a transaction involving the vulnerable adult's account if it has cause to believe the transaction is related, and it must place a hold if DFPS or a law enforcement agency asks. The hold generally expires on the 10th business day, and can be extended for a period not to exceed 30 business days at the request of a state or federal agency or law enforcement agency; the statute also provides for a court petition. A parallel rule covers securities dealers and investment advisers (Texas Government Code section 4004.355).

If you are worried about a parent's account, it is worth telling the bank directly that you suspect a scam; the bank's reporting and hold powers only start once it has cause to suspect exploitation.

Higher penalties in state enforcement. In a lawsuit the Attorney General brings under the DTPA, section 17.47 allows an additional civil penalty of not more than $250,000 where the act was calculated to take money or property from a consumer who was 65 or older. That is an enforcement penalty paid to the state, not a remedy a victim collects.

For fraud against anyone 60 or older, the federal DOJ National Elder Fraud Hotline (833-372-8311) can also help you report; see where to report a scam.

Texas scam laws on the books

The Anti-Phishing Act

Texas Business and Commerce Code chapter 325 "may be cited as the Anti-Phishing Act." Section 325.004 bars creating a web page or domain name "represented as a legitimate online business without the authorization of the registered owner" and using it to solicit identifying information with intent to use it fraudulently. Section 325.005 bars sending, with intent to fraudulently use or possess identifying information, an email "falsely represented as being sent by a legitimate online business" that links to such a page and asks for identifying information, where the email goes to "an electronic mail address held by a resident of this state." For how phishing, smishing and vishing work and what to do if you clicked, see our phishing guide.

Crypto ATMs (virtual currency kiosks)

Two 2025 bills aimed at crypto kiosks stalled in the Legislature's regular session. SB 1705, on regulation of virtual currency kiosks, was last placed on the House General State Calendar on May 27, 2025, and HB 2798, on disclosures for kiosk transactions, passed the House and was last referred to the Senate Business and Commerce Committee on April 29, 2025, according to the Legislature's bill histories. Neither history shows a signature. Separately, the Texas Department of Banking takes complaints about money services businesses (see the table above).

Suing a scammer or a business in Texas

Justice court. Texas justice courts have original jurisdiction over civil matters where "the amount in controversy is not more than $20,000, exclusive of interest" (Texas Government Code section 27.031(a)(1)). That is the usual place for a modest claim against a business or an individual you can identify and serve.

Deadlines. A DTPA claim has the two-year limit above. A common-law fraud claim has a longer one: Texas Civil Practice and Remedies Code section 16.004(a)(4) requires suit on fraud "not later than four years after the day the cause of action accrues." When a fraud claim accrues can depend on when it was discovered; ask a Texas lawyer how that applies to your dates. Our Texas statute of limitations guide covers other civil deadlines.

Who you can actually reach. Lawsuits work against people and businesses with a name, an address and assets. A scammer who hid behind a fake identity, a spoofed caller ID or an overseas account is usually not reachable through a Texas court. In those cases the payment company, a fast report to law enforcement, and protecting your identity are where your effort pays off.

Related guides

• Scams and fraud: your rights and where to start
• How to get money back after a scam
• Where to report a scam
• Zelle and payment app scams
• Tech support and fake invoice scams
• Texas identity theft laws
• Texas debt collection laws
• Texas statute of limitations

Last updated: October 2, 2026.

This article is general legal information, not legal advice. For your specific situation, contact your payment company, the Texas office named above, or a lawyer licensed in Texas.

Frequently Asked Questions

Can I sue a scammer in Texas?

Possibly, if you can identify and serve them and you qualify as a DTPA consumer (someone who sought or acquired goods or services by purchase or lease). The Texas DTPA (Bus. and Com. Code section 17.50) lets a consumer sue over a listed deceptive act they relied on, or an unconscionable action, but an anonymous or overseas scammer is usually not reachable through a Texas court.

Does the Texas DTPA award triple damages?

Only if the jury finds the defendant acted knowingly or intentionally. It may then award up to three times economic damages (or, if intentional, three times mental anguish and economic damages) under section 17.50(b)(1); it is a ceiling, not automatic.

Do I have to send a demand letter before suing under the DTPA?

Generally yes. Section 17.505(a) requires written notice at least 60 days before filing a suit for damages, describing your complaint and the amount claimed, unless notice is impracticable because the limitations period is about to run.

How long do I have to file a DTPA claim in Texas?

Two years from the deceptive act, or two years from when you discovered or reasonably should have discovered it, under section 17.565. It can be extended 180 days if the defendant knowingly acted to make you delay suing.

Does the DTPA pay my attorney's fees?

If you prevail, yes. Section 17.50(d) says each consumer who prevails shall be awarded court costs and reasonable and necessary attorneys' fees. A defendant can recover its fees if the suit was groundless, in bad faith or for harassment.

Will the Texas Attorney General get my money back?

Do not expect it. The office says complaints are reviewed for informational purposes and you may not be contacted again. Contact your payment company for a reversal and consider the DTPA for a business you can identify.

Who do I call if an elderly person in Texas is being scammed?

Report it to Texas Adult Protective Services at 1-800-252-5400; Texas law requires anyone who suspects financial exploitation of a vulnerable adult to report it. The DOJ Elder Fraud Hotline (833-372-8311) also helps with fraud against anyone 60 or older.

Can a Texas bank freeze a transaction if it suspects elder fraud?

Yes. Under Finance Code section 281.004, after reporting suspected exploitation of a vulnerable adult, a bank may hold a related transaction, and must if DFPS or law enforcement asks. The hold generally expires on the 10th business day unless extended.

Does Texas regulate crypto ATMs?

Two 2025 bills on virtual currency kiosks, SB 1705 and HB 2798, stalled in the regular session according to the Legislature's bill histories. The Texas Department of Banking takes complaints about money services businesses.

What is the small claims limit in Texas?

Texas justice courts hear civil cases where the amount in controversy is not more than $20,000, excluding interest (Government Code section 27.031(a)(1)).