Stop Identity Fraud and Identity Theft Act of 2026 (H.R. 7270)

Summary

This bill aims to establish a government-wide approach to preventing identity fraud and theft in the financial services industry. It proposes the following key provisions:

Purpose and Intent

• Address the lack of easy, affordable, and reliable ways to verify individual identities online, which creates vulnerabilities exploited by cybercriminals and hostile nation-states.
• Combat the rising incidents of identity theft and fraud, which cost the federal government an estimated $233 billion to $521 billion annually.
• Protect consumers, businesses, and government agencies from identity-related cybercrimes, including emerging "deepfake" attacks powered by artificial intelligence.

Key Provisions

• Establishes a grant program for the Treasury Department to provide "Identity Fraud Prevention Innovation Grants" to states.
• Requires states to use the grant funds to:
  • Develop digital versions of driver's licenses and other ID credentials that comply with NIST guidelines.
  • Protect individual privacy and security, including from "deepfake" attacks.
  • Catalyze development and use of more resilient, interoperable identity solutions.
  • Reduce identity theft and fraud by replacing vulnerable legacy identity systems.
  • Ensure integrity of government benefit programs and protect the financial system.
• Stipulates that at least 10% of grant funds must be used to assist individuals in obtaining required digital ID credentials.
• Prohibits states from requiring use of digital IDs or eliminating physical ID credentials.

Impact

• Strengthens the nation's identity infrastructure to better protect against identity fraud and theft.
• Empowers states to modernize identity credentials and verification systems.
• Aims to safeguard government programs, the financial system, and online transactions from identity-based exploitation.
• Enhances privacy and security protections for individuals as digital identity solutions are developed and deployed.

Overall, the bill seeks to leverage government capabilities to improve the security, reliability, and accessibility of digital identity solutions used by individuals, businesses, and government entities.