Bank Fraud Technology Advancement Act of 2026
- Bill Number
- H.R. 8671
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-06-18: Placed on the Union Calendar, Calendar No. 612.
- Last Updated
- 2026-07-10T15:11:05Z
AI-Generated Summary
Summary of H.R. 8671: Bank Fraud Technology Advancement Act of 2026
Purpose of the Legislation
This bill directs federal banking agencies to study the application of advanced technologies for detecting and preventing financial fraud and scams, with a focus on improving access for smaller community financial institutions. It also authorizes a voluntary pilot program to support such institutions in adopting these tools.
Key Provisions Outlined
- Definitions: Establishes terms including "advanced fraud detection technology" (covering artificial intelligence, machine learning, behavioral biometrics, and blockchain tools), "artificial intelligence," "credit union," "federal banking agency," and related concepts drawn from existing statutes.
- Study Requirements: Mandates a joint study by federal banking agencies, in consultation with the Treasury Department, FinCEN, FTC, CFPB, FCC, and other agencies. The study must examine:
- Current deployment and results of advanced technologies across institutions of varying sizes.
- Challenges for community financial institutions in accessing tools, including economies of scale and options for shared services or consortia.
- Use of artificial intelligence and machine learning for fraud pattern detection and model governance.
- Effectiveness of information-sharing frameworks and public-private partnerships.
- Fraud risks in payment systems and potential for advanced analytics.
- Regulatory barriers, needs for guidance or safe harbors, and staff training.
- Reporting: Requires a public report to Congress within 18 months, including findings, determinations, and recommendations for legislative or regulatory actions, with an option for a classified annex.
- Pilot Program: Authorizes federal banking agencies to create a voluntary program (starting no later than one year after the study report) for institutions with under $10 billion in assets. Features may include pooled procurement, technical support, standardized templates, and access to anonymized fraud data. The program sunsets after three years, followed by a public report with further recommendations.
Significant Changes to Existing Law Introduced
This legislation introduces new requirements for interagency study and optional pilot initiatives rather than amending core statutes. It adds obligations for federal banking agencies to evaluate technology adoption and consider tailored regulatory approaches, without altering existing definitions or authorities in banking or consumer protection laws.
Potential Impacts on Government Agencies, Citizens, or International Relations
- Government Agencies: Increases workload for federal banking agencies through study and potential pilot coordination; may lead to new interagency guidance or training on technology oversight.
- Citizens: Could enhance fraud prevention for bank and credit union customers, potentially reducing losses while raising considerations around privacy and data sharing.
- International Relations: No direct effects identified, though improved domestic fraud tools might indirectly support cross-border payment security.
Main Stakeholders Affected by This Legislation
- Federal banking agencies (including the National Credit Union Administration).
- Insured depository institutions and credit unions, particularly community financial institutions with limited resources.
- Consumers and account holders at these institutions.
- Related federal entities such as the Treasury Department, FinCEN, FTC, CFPB, and law enforcement agencies.
- Technology vendors and third-party service providers involved in fraud detection.
Notable Legal, Constitutional, or Political Implications
The bill emphasizes privacy, data protection, and civil liberties in any expanded information sharing, while seeking regulatory clarity or safe harbors for technology use. It raises no apparent constitutional issues but could influence future debates on AI governance in financial services and the balance between innovation and consumer safeguards.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Rep. Pettersen, Brittany [D-CO-7]
Recent Actions
- 2026-06-18: Placed on the Union Calendar, Calendar No. 612.
- 2026-06-18: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-704.
- 2026-06-18: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-704.
- 2026-05-13: Ordered to be Reported (Amended) by the Yeas and Nays: 52 - 1.
- 2026-05-13: Committee Consideration and Mark-up Session Held
- 2026-05-07: Referred to the House Committee on Financial Services.
- 2026-05-07: Introduced in House
- 2026-05-07: Introduced in House
Bill Versions
- Bank Fraud Technology Advancement Act of 2026 — issued 2026-05-07 — PDF (9 pages)
- Bank Fraud Technology Advancement Act of 2026 — issued 2026-06-18 — PDF (14 pages)