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Bill

HB 190

Electronic fund transfers; Office of AG shall convene work group to review fraudulent activity, etc.

2026 Regular Session Introduced by Kelly Fowler

Requires Virginia financial institutions to establish procedures preventing continuation of identified fraudulent transactions or patterns within customer accounts.

Acts of Assembly Chapter text (CHAP0576)
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Bill Summary · HB 190

Legislative bill overview

HB 190 requires Virginia financial institutions to implement procedures to prevent, detect, and stop known fraudulent transactions or patterns of fraudulent activity. The bill establishes standards for how banks and similar entities must respond when they identify potentially fraudulent conduct involving customer accounts.

Why is this important

Fraud costs consumers and financial institutions billions annually. This bill aims to shift responsibility toward institutions to actively prevent fraud continuation rather than simply investigating it after the fact, potentially reducing losses and improving customer protection in Virginia.

Potential points of contention

  • Operational burden: Banks may argue compliance costs are high, particularly for smaller institutions, and could be passed to consumers through fees
  • Liability framework: Unclear whether institutions face legal liability if they fail to stop fraud, or if good-faith efforts are sufficient protection
  • False positives: Overly aggressive fraud detection could block legitimate transactions, causing customer inconvenience and requiring appeal processes
  • Definition ambiguity: The substitute version's specific standards for "known fraudulent transactions" may need clarification to ensure consistent implementation across institutions

Compiled from official sources — confirm details with the bill’s official record.

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