Bill > AB2674

This bill, titled "Financial abuse and deception: preventive measures," aims to protect customers of financial institutions from financial abuse and deception by requiring these institutions, referred to as "depository institutions" (banks and credit unions), to implement specific preventive actions. If a depository institution suspects a "suspect transaction"—meaning unusual or suspicious account activity that could be financial abuse or deception—it must take certain steps, such as advising customers to verify information with the sender of a transaction, encouraging them to contact fraud hotlines, and, if a trusted third party's contact information is on file, potentially contacting that individual. For non-in-person transactions, a prominent warning must be displayed to the customer. The bill defines "financial abuse or deception" broadly to include wrongful taking of property, inducing payments through misrepresentation, or obtaining control of a customer's assets through deception, intimidation, or undue influence. If a customer suffers harm and believes a required preventive measure was not provided, they have 60 days to notify the institution, which must then investigate and, if a measure was missed, refund the transaction amount plus interest to avoid liability. Customers can also bring civil lawsuits for damages and other relief if these provisions are not followed.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB2674