On October 10, 2024, the Texas Senate Committee on Criminal Justice convened to address pressing issues related to financial crimes and gang activity in the state. The meeting highlighted a significant rise in fraud cases, particularly in Automated Clearing House (ACH) transactions, which have surged by approximately 43% over the past year. This alarming trend is largely attributed to organized crime groups that steal checks from mailboxes and subsequently sell them on the dark web.

The discussion underscored the challenges faced by community banks in Texas, which are primarily regulated by the committee. Despite the overall safety and soundness of these banks, the increasing losses from fraud pose a serious threat to their operations. As noted by a committee member, if these losses continue to escalate, smaller banks may be forced to merge with larger institutions, potentially reducing local banking options for communities.

George Ryan, the senior administrator for the Texas Anti Gang Center, also presented during the meeting. He recounted the establishment of the center in 2010, which aimed to consolidate local, state, and federal resources to combat gang violence and organized crime in Houston and Harris County. With bipartisan support, the initiative has expanded to include nine centers across Texas, with plans for a tenth center in Midland, contingent on funding.

The committee's discussions reflect a growing concern over the intersection of financial crime and gang activity, emphasizing the need for continued legislative support and resources to combat these issues effectively. As the meeting concluded, members expressed a commitment to addressing these challenges and enhancing the safety of Texas communities.