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Bill to require banks to report suspected elder fraud to FBI’s IC3 advances amid industry concern over customer notice
Summary
AB 871 would require financial institutions to report suspected elder financial abuse to local authorities, adult protective services and the FBI’s Internet Crime Complaint Center (IC3), and to provide victims with IC3 reporting information; proponents said IC3 reporting improves investigations and recovery; bankers objected to a mandated customer notification requirement.
Assemblymember Stephanie told the committee AB 871 is aimed at strengthening protections for seniors by ensuring financial institutions have reporting processes and training to prevent and respond to online scams. The bill would require mandated‑reporter training to include submission guidance for the FBI’s Internet Crime Complaint Center (IC3) and require institutions to provide suspected victims with information to make their own IC3 reports.
"Timely notice to the FBI is critical," Assemblymember Stephanie said, noting IC3’s ability in some cases to stop or reverse transactions within a limited window. Amanda Kirsch of the County Welfare Directors Association, a sponsor, said IC3's nationwide database helps pattern‑spotting across jurisdictions and that IC3 can sometimes reverse transactions during a 48–72 hour window.
Opponents, including Jason Lane of the California Bankers Association, focused on the bill’s customer‑notification provision. Lane said mandatory notice that a report was filed with the FBI risks alarming seniors when a report may reflect only an out‑of‑pattern transaction rather than confirmed fraud. "We're alarming consumers potentially," Lane said, and urged removing the notification requirement (referred to in committee as K2).
Vice Chair Nilo and other members pressed both sides on the operational and consumer‑protection tradeoffs. The author said she and stakeholders discussed flexibility in how notice can be delivered and emphasized that victim participation in IC3 reporting improves investigative information.
Committee action: AB 871 was moved by motion and referred to the Senate Judiciary Committee; an initial partial roll call left the item "on call" pending absent members, and the committee later completed roll calls as members returned. Several senators expressed strong support and some offered to be coauthors as negotiations continue.
Next steps: AB 871 is referred to Judiciary for further review and likely additional amendments to reconcile industry implementation concerns with advocates’ calls for broader reporting to IC3.
