What does Preamble of Bank Fraud Technology Advancement Act of 2026 do?

This bill requires the Federal banking agencies to conduct a study on the use of advanced technologies in fraud detection and prevention. The study should pay particular attention to community financial institutions.

What does SHORT TITLE. of Bank Fraud Technology Advancement Act of 2026 do?

This bill is formally titled the Bank Fraud Technology Advancement Act of 2026.

What does DEFINITIONS. of Bank Fraud Technology Advancement Act of 2026 do?

This section defines terms used within the Act. “Advanced fraud detection technology” is defined as emerging technologies used to detect, prevent, or mitigate financial fraud and scams, including artificial intelligence, machine learning, and blockchain tracing tools. “Artificial intelligence” and “machine learning” are defined by reference to section 5002 of the National Artificial Intelligence Initiative Act of 2020. “Credit union” is defined as an “insured credit union” according to the Federal Credit Union Act. “Federal banking agency” includes the meaning defined in the Federal Deposit Insurance Act and specifically refers to the National Credit Union Administration. “Insured depository institution” is defined by reference to section 3 of the Federal Deposit Insurance Act.

What does STUDY ON ADVANCED TECHNOLOGIES IN FRAUD AND SCAM DETECTION AND of Bank Fraud Technology Advancement Act of 2026 do?

This section mandates a comprehensive study by Federal banking agencies, in consultation with various government agencies, on the use of advanced fraud detection technology by insured depository institutions and credit unions. The study will evaluate the current use and effectiveness of these technologies, considering factors like adoption rates, measurable outcomes, barriers to adoption, and interoperability. A key focus is on community financial institutions' access to advanced fraud detection technology, including challenges, potential disadvantages due to economies of scale, and options for shared services. The study will also examine the use of artificial intelligence and machine learning in fraud detection, governance frameworks, and potential steps to ensure access for institutions and vendors. Information sharing and public-private partnerships, including the feasibility of a voluntary fraud analytics consortium, will be assessed. The study will analyze payments system risks and regulatory/supervisory considerations related to fraud detection innovation. Within 18 months of enactment, the Federal banking agencies must issue a public report to Congress containing findings and recommendations for legislative, regulatory, or supervisory actions. The report may include a classified annex for the committees and recommendations such as supporting shared fraud detection utilities and guidance for artificial intelligence use.

What does COMMUNITY FINANCIAL INSTITUTION FRAUD TECHNOLOGY PILOT PROGRAM. of Bank Fraud Technology Advancement Act of 2026 do?

This section establishes a voluntary pilot program to improve community financial institutions' access to advanced fraud detection tools. The pilot program is intended for insured depository institutions and credit unions with less than $10,000,000,000 in total consolidated assets. Potential program features include pooled procurement, model validation assistance, standardized vendor risk management templates, regulatory clarity, and collaboration with the Department of the Treasury and law enforcement. The pilot program will expire no later than 3 years after the report required under section 3(c). The Federal banking agencies must submit a report to the House and Senate committees within 6 months of the pilot program's expiration, including findings and recommendations. The report may include a classified annex, if applicable.

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Bank Fraud Technology Advancement Act of 2026

Last updated: 6/18/2026 · Introduced: 5/7/2026

Author: Mike Flood (R-NE)

TL;DR (AI)

This bill requires federal banking agencies to conduct a study on the use of advanced technologies, such as artificial intelligence, for fraud detection and prevention, with a focus on community financial institutions.
The bill establishes a voluntary pilot program to help community financial institutions access advanced fraud detection tools through options like pooled procurement and shared services.
Findings from the study, including recommendations for shared fraud detection utilities and responsible AI use, will be reported to Congress within 18 months of the Act's enactment.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 3 more.

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