H.R. 8671 — Bank Fraud Technology Advancement Act of 2026

This section defines terms used in the Act, including advanced fraud detection technology (encompassing artificial intelligence, machine learning, predictive analytics, behavioral biometrics, and related tools), artificial intelligence and machine learning (with meanings drawn from existing statute), credit union, federal banking agency (including the National Credit Union Administration), and insured depository institution.

This section requires the Federal banking agencies, in consultation with the Secretary of the Treasury, FinCEN, the FTC, the CFPB, and appropriate law enforcement agencies, to jointly conduct a comprehensive study on the use of advanced fraud detection technology by insured depository institutions and credit unions. The study must evaluate current deployment and effectiveness across institutions of varying sizes, barriers to adoption by community financial institutions, the role of artificial intelligence and machine learning in fraud detection, information-sharing frameworks and public-private partnerships, payments system risks, and regulatory or supervisory barriers to innovation. Not later than 18 months after enactment, the agencies must submit a report with findings and legislative, regulatory, or supervisory recommendations to the House Financial Services Committee and the Senate Banking Committee and make the report publicly available, except for classified or supervisory information.

This section establishes a voluntary pilot program under which the Federal banking agencies may jointly facilitate community financial institutions' access to advanced fraud detection tools, to be implemented not later than one year after submission of the study required under section 3. The program may include pooled procurement or shared services models, model validation assistance or technical support, standardized vendor risk management templates, regulatory clarity on model governance expectations, and collaboration with the Department of the Treasury and law enforcement to provide anonymized fraud typology data feeds.