Idaho Department of Finance seeks six new examiners, stresses rising cyber fraud targeting older residents

The Idaho Department of Finance requested six new full-time positions and $816,600 from state regulatory funds on Jan. 21 during a Joint Finance-Appropriations Committee hearing, saying the hires are needed to bolster IT and cybersecurity expertise and to counter increasing fraud targeting older residents.

The request, presented by Noah Peterson, budget and policy analyst with the Legislative Services Office, would add positions across the Financial Institutions Bureau, the Consumer Finance Bureau and the Securities Bureau. "This is an ongoing request of 6 FDP and $816,600," Peterson said, listing roles such as an IT examiner, financial examiners and investigator positions with IT and forensic-accounting specialties.

Director Patty Perkins said the department has seen a "huge increase in cybercrime," including scams that prey on elderly Idahoans. "There is a huge increase in cybercrime. And, we have a particular, concern about the elderly population in the state," Perkins told the committee, describing partnerships with the Idaho State Police and other law enforcement to "follow the money" in cases that sometimes involve cryptocurrency and other technical methods.

Why it matters: Committee members pressed for measurable evidence that the new staff would produce a return on investment. Senator Cook asked for "data points" and for outcomes that would allow the legislature to assess the hires' effectiveness next year. Senator Wintrow urged the department to provide case-level and workload information, noting investigations into elder fraud that staff had previously described to her.

The department provided position-level detail during the presentation. Requested roles include an IT examiner for the Financial Institutions Bureau (salary listed at $121,300, 100% of policy for salary grade P), a non-IT financial examiner at the same salary, two financial investigator 3 positions focused on IT (one for mortgage and credit services, one for consumer services) budgeted at $82,500 each (salary grade M), a securities bureau IT/cybersecurity specialist at $82,500, and a forensic-accounting specialist for the securities bureau also budgeted at $82,500. The request included one-time capital outlay for laptops, docking stations and portable field monitors recommended by the Office of Information Technology Services.

Governor's recommendation: The governor recommended most items but did not recommend two of the financial investigator 3 positions in the Consumer Finance Bureau, which Peterson highlighted for the committee.

What the committee asked for: Senators Wintrow and Cook asked the Department of Finance for concrete workload and outcome data to justify additional FTPs and to measure results if the legislature funds the positions. Director Perkins agreed to provide supplemental information to the committee regarding cases, workload and coordination with prosecutors and ISP.

Background and funding: The department operates primarily on state regulatory funds generated from examinations, assessment and filing fees and fines. Peterson said the department averages about 92.5% of appropriation spent over recent years and that personnel costs account for roughly 77.8% of expenditures in fiscal year 2024.

Next steps: The department will provide additional documentation to the committee on request volumes, case outcomes and other metrics to support or refine the enhancement request. No formal vote or appropriation occurred at the Jan. 21 hearing.