Bank Fraud Technology Advancement Act of 2026

The Bank Fraud Technology Advancement Act of 2026 directs federal banking agencies to conduct a comprehensive study on how banks and credit unions use advanced fraud detection tools like artificial intelligence and machine learning. This study will examine the effectiveness of these technologies, identify barriers for smaller community financial institutions, and analyze issues related to data sharing and regulatory clarity. Within 18 months of enactment, the agencies must submit a public report with their findings and recommendations to Congress on how to improve fraud prevention. Following the study, the bill allows the agencies to launch a voluntary pilot program designed to help smaller banks access shared fraud detection tools and technical support.