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Bill to help protect California seniors from scammers waits for Gov. Newsom’s signature
Credit card companies are responsible for fraud loss, under federal law. But there’s no penalty for big banks when venerable victims wire thousands of dollars to scammers. California lawmakers just passed a bill that could change that.
Alice Lynn has been telling her story a lot lately.
“I thought about ending my life,” Lynn said while testifying before the Assembly. “At my age, I do not have a second chance.”
The Southern California widow – who cares for a disabled son – befriended a stranger on a messaging app where, over time, he convinced her to wire him her life savings in a cryptocurrency scam.
“I went to the bank again and again, seven times,” Lynn explained during a recent state senate hearing.
She says the bank missed several red flags and opportunities to stop her.
Lawmaker joins the fight
When outgoing State Sen. Bill Dodd (D-Napa) heard Alice’s story, he decided to address financial elder abuse as one of his last acts in state office.
“There are still banks that are out there almost aiding and abetting … scammers,” Dodd said.
Dodd introduced Senate Bill 276 tailored to Alice’s case.
The bill would require banks to create an emergency contact program for elderly accountholders and dependent adults – someone to approve a transfer if the bank suspects elder fraud or financial abuse.
“[The bank] did not even contact my daughter, who is the joint account holder, Alice explained in her senate testimony. “If they even stopped the last [transaction], they would have saved me $200,000.”
The bill also authorizes banks to delay transactions over $5000 for three business days if they suspect fraud.
Banks oppose bill
The banking industry had its own concerns, opposing the initial version of Dodd’s bill over worries about the liability of delaying transactions and keeping people from their money.
“I think I would be pretty upset if a teller working their way through college told me that I could not withdraw money out of my own,” said Jason Lane with the California Bankers Association during the senate hearing.
So Dodd went back to the bargaining table, making major amendments to his bill, limiting banks’ liability and delaying the bill’s implementation until 2026.
The banking industry removed its opposition to the final bill, and it passed both the Assembly and Senate with bipartisan support.
Still, lobbyist and law professor Chris Micheli explains the opposition might not be over.
“It would surprise me if a federally chartered bank didn’t challenge this law,” Micheli said.
Federal law protects national banks – like Chase, Bank of America and Wells Fargo – from some state regulation, meaning the California law may not be enforceable for federal banks.
For instance, when Alice sued her bank under a current California law, her bank had the case moved to federal court where state law may not apply.
“So what’s the point of this bill then, if alone it doesn’t actually have any teeth?” CBS News California asked Micheli.
“It might start that conversation at the federal level and amongst other states,” Micheli explained, noting it will be enforceable unless or until it is challenged.
What’s the status of Dodd’s bill?
Ultimately, Micheli says it could prompt Congress to act and make a federal version of the state law – allowing Dodd to leave a lasting legacy for his last act in office.
“Do you think this will ultimately change policy across the country?” CBS News California asked.
“I really do … because they want to protect their seniors as well,” Dodd said.
In a rare move, a federal judge recently denied a motion by Alice’s bank to have her case dismissed. Her case will move forward in federal court. The next hearing is in November.
Meanwhile, Dodd’s bill is sitting on the governor’s desk, and the deadline to sign it is Monday.
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Federal prosecutors have secured criminal charges against multiple Iranian hackers for allegedly targeting members of former President Donald Trump’s presidential campaign as part of a malicious cyber scheme, multiple sources familiar with the investigation confirmed to CBS News.
The Iranian hackers were indicted by a grand jury on Thursday and the charges could be announced as early as Friday, the sources said. The nature of the allegations and the names of the defendants were unknown as charging documents remain under seal. The exact number of people charged was also not confirmed.
ABC News and Politico first reported on elements of the charges.
A Justice Department spokesperson declined to comment on CBS News’ reporting. A spokesperson for the Trump campaign also did not immediately respond to a request for comment.
Once publicly announced, the charges will mark an escalation in the federal government’s work to combat Iran’s alleged efforts to interfere in the 2024 presidential election. Federal officials have warned Iran is seeking to undermine Trump’s campaign.
The FBI launched probes earlier this summer after both the Trump and then-Biden campaigns experienced attempted phishing schemes targeting people associated with the candidates, sources told CBS News in August.
Last week, federal officials with the FBI and other intelligence agencies released a statement confirming, “Iranian malicious cyber actors in late June and early July sent unsolicited emails to individuals then associated with President Biden’s campaign that contained an excerpt taken from stolen, non-public material from former President Trump’s campaign as text in the emails. There is currently no information indicating those recipients replied.”
The statement went on to say that “Iranian malicious cyber actors have continued their efforts since June to send stolen, non-public material associated with former President Trump’s campaign to U.S. media organizations…Foreign actors are increasing their election influence activities as we approach November.”
Iran’s United Nations mission previously denied it had plans to interfere or launch cyberattacks in the U.S. presidential election, telling CBS News in a statement last week that “the Islamic Republic of Iran does not engage in the internal uproars or electoral controversies of the United States,” adding that “Iran neither has any motive nor intent to interfere in the U.S. election; and, it therefore categorically repudiates such accusations.”
Trump’s campaign revealed last month that it had been hacked and said Iranian actors were involved in stealing and distributing sensitive internal documents to members of the press.
FBI agents worked with both Google and Microsoft — two major tech firms and providers of email services — to dig into the apparent spearphishing attacks targeting those close to both presidential campaigns, according to two people familiar with the probe. A report published by Microsoft earlier this summer revealed Iran is evolving its tactics to affect the upcoming election.
Trump and former members of his administration have been increased targets of Iranian actors following the killing of Iranian military commander Qassem Soleimani in 2020. Some former officials received increased protection because of death threats, and in July, federal prosecutors filed charges against a Pakistani national with ties to Iran for allegedly planning to assassinate American politicians, including possibly Trump.
Iran is not the only foreign adversary that U.S. officials say is seeking to undermine the upcoming presidential election. Intelligence agencies have warned Russia and China have launched cyber campaigns of their own to sew chaos, with Russia allegedly seeking to damage Vice President Kamala Harris’ bid for the White House.
Speaking at an event hosted by the Atlantic Council on Thursday, Deputy Attorney General Lisa Monaco said, “We are seeing more threat actors, more threat actors getting into the game” of election interference, exacerbated by advancements in artificial intelligence.
The goal, according to Monaco, is to “sow discord, sow distrust in our election system and undermine confidence in our democratic process.”
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