If what was stolen is cash, that is what you report as to the type of property. The loss will not be deductible on the Federal return, if it is not related to a Federally declared disaster, but the information will flow through to the California return. Answer the questions in the California interview about the theft when they appear.
See IRS Topic 515 and this older TurboTax tips article for more information on how to determine whether a theft loss is deductible and for what tax year.
If the "scam" was more along the lines of a Ponzi scheme rather than a simple theft of cash, those types of losses are legally complex and are out of scope for TurboTax; we can't advise how to enter them. See the link below for more information:
See the California Schedule CA Instructions. This is the schedule that lists all of the adjustments to income, deductions, etc. for California due to differences from Federal law. Under federal law, the personal casualty and theft loss deduction is suspended due to the Tax Cuts and Jobs Act, with exception for personal casualty gains. Federal law allows a deduction for personal casualty and theft loss incurred in a federally declared disaster. California law does not conform.
California allows personal casualty and theft loss and disaster loss deductions. If you have personal casualty and theft loss and/or disaster loss, complete another federal Form 4684, Casualties and Thefts, using California amounts. Enter the difference between the federal and California amount in column B or column C.
Note that you posted on a thread that has been inactive for two years, so the original posters may not see it.
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