Florida Banking July 2024

GOVERNMENT RELATIONS

HOW THE FBA IS WORKING TO STOP FRAUD

BY ANTHONY DIMARCO, FBA EXECUTIVE VICE PRESIDENT AND DIRECTOR OF GOVERNMENT AFFAIRS

W e have heard from many of our members and legislators concerned about the uptick in all forms of fraud. I expected the fraud involving email or the internet, but I was surprised to hear about the rise of check fraud and other low-tech fraudulent schemes. The FBA is looking at a variety of ways to help combat this in the next year, and beyond. First, we are looking at the legislative front. An example is our work on SB 556 by Sen. Rouson (D-St. Petersburg) and Rep. David Silver (D-West Palm Beach). The bill, modeled after securities industry legislation, permits a financial institution to place a hold on a transaction from an account of a specified adult or a vulnerable adult if it reasonably believes that financial exploitation of the specified adult has occurred, is occurring, has been attempted, or will be attempted in connection with the disbursement or transaction (there are other conditions as well, so please read the legislation). The hold on the transaction expires in 15 business days, and may be extended for an additional 30 business days. SB 556 also grants immunity from any administrative or civil liability that might otherwise arise from the hold for any financial institution which, in good faith and exercising reasonable care, complies with the bill’s provisions. A vulnerable adult is defined as someone who is 18 or older and whose ability to perform the normal activities of daily living, or to provide for his or her own care or protection, is impaired due to a mental, emotional, sensory, long-term physical or developmental disability or dysfunction; brain damage; or the infirmities of aging. As such, this voluntary program will only apply to those who meet this definition, but this is a start.

Unfortunately, it was harder to pass 556 than it needed to be and we want to thank Sen. Rouson, Rep. Silvers, Senate Banking & Insurance Chairman Jim Boyd and others for their help in its passage. There is a group of legislators who believed the banking industry would use the litigation protection in SB 556 to “debank” customers because of the banks’ “wokeness.” At one point in the House, the litigation liability protection was removed from the bill. We informed the legislator that our members would not use this voluntary program without the protection, and the legislator responded that he was fine with that, because he did not want to see a widow’s account frozen because the bank did not like her. Thankfully, SB 556 was passed with the liability protections and Gov. DeSantis recently signed the bill. To help in this endeavor, we are reaching out to our counterparts at other state banking associations to see what legislation is on their books that is successful and that we may want to adopt in Florida. We will be doing the same with law enforcement. SB 556 is an example of our work on the legislative front. We are also looking into ways to curtail fraud through education and messaging. The FBA is partnering with the Kentucky Bankers Association on their Fraud Academy, Aug. 6-8. This two-and-a-half day event is an immersive learning experience for our members to acquire the skills needed to detect and combat fraud. Speakers will include experts from the DEA, FBI, law enforcement and the financial industry. The event will stream live. You can register at www.fraudacademyhq.com. While we can never completely eradicate fraud, we hope our efforts will help curtail it throughout Florida. We look forward to working with you over the next year to curb this ever-growing problem.

18 — FLORIDA BANKING THE VOICE OF FLORIDA BANKING