AB-2674 • 2026

Financial abuse and deception: preventive measures.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Schiavo
Last action: 2026-04-23
Official status: Read second time and amended.
Effective date: Not listed

Plain English Breakdown

The exact preventive measures that depository institutions must take are not detailed in the provided official summary.

Financial Abuse and Deception Prevention

AB-2674 requires depository institutions to take preventive measures against financial abuse and deception, including investigating suspicious transactions and refunding customers if necessary.

What This Bill Does

Requires depository institutions to take actions that protect their customers from financial abuse or deception.
If a depository institution suspects financial abuse or deception in a transaction, it must employ certain preventive measures as prescribed by the bill.
Allows customers who have suffered harm due to financial abuse or deception and did not receive required preventive measures to notify the depository institution within 60 days of the suspect transaction.
Requires depository institutions to investigate any reported suspicious transactions and relevant account history.
Provides a liability shield for depository institutions that refund the amount of the suspect transaction plus interest.

Who It Names or Affects

Customers of depository institutions
Depository institutions

Terms To Know

Depository institution: A place where people can keep their money, like a bank.
Financial abuse and deception: Actions that use or take another person's money in a way that hurts them.

Limits and Unknowns

The bill does not specify the exact preventive measures banks must take.
It is unclear how this law will be enforced and monitored by regulators.

Bill History

2026-04-23 California Legislative Information
Read second time and amended.
2026-04-22 California Legislative Information
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (April 21).
2026-04-21 California Legislative Information
From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 1.) (April 20). Re-referred to Com. on JUD.
2026-04-13 California Legislative Information
(Pending re-refer to Com. on JUD.)
2026-04-13 California Legislative Information
Assembly Rule 56 suspended.
2026-03-16 California Legislative Information
Referred to Coms. on B. & F. and JUD.
2026-02-21 California Legislative Information
From printer. May be heard in committee March 23.
2026-02-20 California Legislative Information
Read first time. To print.

Official Summary Text

AB 2674, as amended, Schiavo.
Financial abuse and deception: preventive measures.
Existing law generally regulates financial institutions, including the California Consumer Financial Protection Law that, among other things, requires the Department of Financial Protection and Innovation to exercise nonexclusive oversight and enforcement authority under California consumer financial laws.
This bill would require a depository institution, as defined, to take certain actions that would help protect its customers from financial abuse and deception, as defined, including by requiring a depository institution that suspects financial abuse or deception with respect to any transaction to employ certain preventive measures, as prescribed, except as specified.
This bill would authorize a customer who has suffered harm from financial abuse or deception and did not receive a required preventive
measure to, within 60 calendar days of the relevant suspect transaction, provide oral or written notice to the depository institution, as specified. The bill would require a financial institution to investigate the noticed transaction and relevant account history and would provide a liability shield to a financial institution that refunds the amount of the suspect transaction plus interest, as prescribed.
This bill would authorize a customer to bring a civil action to enforce its provisions, as specified.

Current Bill Text

Read the full stored bill text

Download Bill PDF