Department of Finance seeks six new examiners, cites rising cyber fraud and elder-targeted scams

The Department of Finance asked the Joint Finance-Appropriations Committee on Jan. 21 for six new full‑time positions and $816,600 from state regulatory funds for fiscal 2026 to strengthen IT, investigative and forensic accounting capacity.

Noah Peterson, budget and policy analyst with the Legislative Services Office, described the agency’s request and fund structure in a base review. Peterson said the enhancement package includes specialized examiners and investigators across the Financial Institutions Bureau, Consumer Finance Bureau and Securities Bureau, plus one‑time capital costs for laptops, docking stations and portable field monitors recommended by the Office of Information Technology Services.

The department’s director, Patty Perkins, told the committee staff are seeing a “huge increase in cybercrime” and that elderly Idahoans are a particular target. “There is a huge increase in cybercrime. And, we have a particular, concern about the elderly population in the state,” Perkins said, adding the agency has partnered with Idaho State Police and other law enforcement to “follow the money,” including cases involving cryptocurrency that require specialized tools and expertise.

Peterson outlined the enhancement positions and pay levels: an IT examiner and a general financial examiner for the Financial Institutions Bureau (salary grade P, $121,300 each at 100% of policy); two Financial Investigator 3 positions focused on IT examination (salary grade M, $82,500 each); a Financial Investigator 3 position for cybersecurity in the Securities Bureau (M, $82,500); and a securities‑bureau financial examiner with a forensic accounting specialty (M, $82,500). One‑time capital outlay of $52,600 was requested for hardware (laptops, docking stations and field monitors).

Peterson said the governor recommended all of the enhancement items except the two financial investigator 3 positions requested for the Consumer Finance Bureau. Perkins and several committee members said they would supply additional workload and cyber‑damage data to justify the positions and to support later measurement of outcomes. Senator Lori Wintrow requested case and workload details specifically tied to elder‑targeted fraud; Perkins agreed to provide follow‑up information to the committee.

Committee members asked for more tangible performance data. “I would like to be able to see that where you’re at and why we are justifying having four new FTPs,” Senator Cook said, asking for baseline metrics the committee could use to evaluate return on investment a year after hiring. Perkins said the department supports the governor’s recommendation but also believes the work justifies the full request and will provide the committee with further documentation.

Background presented by Peterson: the department operates on three dedicated funds — the state regulatory funds (operations), the mortgage recovery fund (statutorily limited to $50,000 for administration) and the securities investor‑education fund (statutorily limited to $50,000). The Department of Finance has historically spent more than 90% of appropriation in recent years and, as of the presentation, had 72 authorized full‑time positions consolidated into one program.

No formal action or vote occurred during the hearing. The committee and agency agreed staff would follow up with more detailed workload and case data related to cybersecurity and elder‑fraud investigations.

Looking ahead, Perkins said the department supports the governor’s budget recommendation and intends to continue partnerships with law enforcement and the state Office of Information Technology Services to address complex fraud and cybercrime investigations involving fintech and cross‑jurisdictional activity.