Bank Fraud Technology Advancement Act of 2026

Improved Fraud Detection and Prevention: The study evaluates the effectiveness of technologies like artificial intelligence and machine learning in detecting fraud patterns, anomalies, and real-time payment fraud, which can lead to loss reduction and better consumer protection (Section 3(b)(1) and Section 3(b)(3)).

Support for Community Financial Institutions: The bill seeks to identify challenges faced by smaller institutions and looks for ways to facilitate access to advanced tools through shared services or managed-service providers (Section 3(b)(2)).

Enhanced Information Sharing: The study examines the effectiveness of public-private partnerships and the feasibility of fraud analytics consortiums to enhance detection capabilities (Section 3(b)(4)).

Potential Pilot Programs for Small Institutions: The bill allows for a voluntary pilot program to help institutions with less than $10,000,000,000 in total consolidated assets access advanced fraud detection tools through models like pooled procurement or technical support (Section 4(a) and Section 4(b)).

Privacy and Data Security Risks: The bill notes that expanded data sharing and information-sharing frameworks must consider potential privacy, data protection, and cybersecurity concerns (Section 3(b)(4)).

Payments System Risks: The study must address potential fraud risks associated with electronic funds transfers and checks, as well as the need to maintain settlement finality and payment system stability (Section 3(b)(5)).