News

• ABA Banking Journal: House committee advances ABA-backed bills on fair credit liability, check fraud
• ABA Podcast: Financing America’s Independence
• ABA Banking Journal: ABA raises concerns about proposed ACH return timeframe revisions
• ABA Banking Journal: ABA supports FCC ‘Know Your Customer’ proposal for originating providers
• CISA News: Space Sector Faces 400% Surge in Cyberattacks Amid Iran War, Experts Say

SDBA Updates

• HB 1238 Toolkit: Effective July 1
• University of Sioux Falls launches new MBA with banking concentration

SDBA Events

• 2026 SDBA Farm & Ranch Profit in Conservation
• 2026 UMACHA Fraud Symposium
• 2026 ABA Agricultural Bankers Conference

Online Education

• Additional Educational Opportunities

Compliance Alliance

• Banking Matters Podcast

ABA Banking Journal: House committee advances ABA-backed bills on fair credit liability, check fraud

The House Financial Services Committee today advanced legislation that would align Fair Credit Reporting Act liability with other financial consumer protection laws, reform the Securities and Exchange Commission and give banks more time to verify suspicious checks. The three bills were supported by the American Bankers Association.

The committee met today to consider 10 bills along with several proposed amendments. In comments submitted ahead of the hearing, ABA expressed support for the following:

• The FCRA Liability Harmonization Act (H.R. 5775), sponsored by Rep. Barry Loudermilk (R-Ga.), would harmonize the Fair Credit Reporting Act with other financial consumer protection laws by capping statutory damages in class action lawsuits, eliminating punitive damages and limiting attorney’s fees. “These reforms would curb abusive litigation practices while preserving strong consumer protections and an effective dispute resolution process,” ABA said. The committee voted 27-23 to advance the bill.
• The SEC Reform and Restructuring Act (H.R. 9329), sponsored by Rep. Ann Wagner (R-Mo.), would implement a series of reforms to improve SEC rulemaking, transparency and oversight. ABA identified several provisions in the bill that would improve the effectiveness of the commission, including requiring the SEC to consider a series of specified factors such as a cost-benefit analysis and the cumulative effect of regulations before issuing rules. The committee voted 28-23 to advance the bill.
• The Strengthening Transaction Oversight Preventing (STOP) Payments Fraud Act (H.R. 9331), sponsored by Rep. Young Kim (R-Calif.), would amend the Expedited Funds Availability Act to allow regulators to remove the requirement for next-day availability of Treasury and cashiers’ checks. “Providing banks of all sizes additional time to verify these checks would help prevent fraud and protect consumers from significant losses,” ABA said. The bill advanced with unanimous support.

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ABA Podcast: Financing America’s Independence

To mark the 250th anniversary of Independence Day this week, this classic replay episode of the ABA Banking Journal — sponsored by Q2 Software — explores the role of banking and finance in the American Revolution and the founding era. John Steele Gordon is an acclaimed economic historian whose books include Hamilton’s Blessing, The Great Game and An Empire of Wealth; he is also the ABA Banking Journal’s “From the Vault” columnist. In this episode, Gordon discusses:

• How not having any chartered banks prior to 1782 put the United States at a disadvantage during the Revolution.
• Conversely, how the Bank of England was a “secret weapon” for Britain during the war.
• The role of patriotic financiers like Robert Morris in achieving U.S. victory.
• The debates over a central bank in the post-revolutionary period and how they contributed to the development of the Constitution.

Listen to the episode

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ABA Banking Journal: ABA raises concerns about proposed ACH return timeframe revisions

The American Bankers Association today said it opposes a proposal by Nacha to modify Automated Clearing House return timeframes, pointing to the high costs that would be imposed on financial institutions, particularly smaller banks.

Nacha has proposed to shorten the timeframe for returns that are typically returned without human decisioning or handling by a receiving depositary financial institution. In a letter, ABA said the proposal would involve substantial systems reengineering, enhanced exception processing, vendor coordination and changes to staffing models – all at high cost to financial institutions for relatively little benefit. The proposal would disproportionately affect community and regional banks, which often depend on service providers and have limited control over system changes, ABA said.

ABA also said that the proposal would reduce processing flexibility, which would impair effective risk management. It urged Nacha to consider more targeted, data-driven approaches to improving return efficiencies.

In addition, ABA weighed in on two other Nacha proposals:

• ABA said the industry would benefit from a revised definition of “banking day” that would remove uncertainty as to whether Sunday or bank holidays could be included in the interpretation. A banking day is a day on which an ACH operator performs an ACH settlement.
• ABA said new rulemaking is not necessary on dishonored and contested returns. Banks report that the existing frameworks governing dishonored and contested returns and defining banking day are well understood, operationalized and functioning effectively across the network, the association said.

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ABA Banking Journal: ABA supports FCC ‘Know Your Customer’ proposal for originating providers

The American Bankers Association today expressed strong support for the Federal Communications Commission’s proposal to impose specific “know your customer” requirements on voice service providers that originate calls — that is, to require originating providers to collect a robust set of information from business callers before allowing the caller access to the provider’s network. Ten other financial trade associations joined ABA in submitting the comment.

In January, ABA urged the FCC to specify steps that voice service providers must take to prevent bad actors from originating fraudulent calls. ABA shared an analysis of call records that identified an originating provider that opened for business in July 2025 and, within two months, originated more than 136 million calls in a single month on its network. Further analysis showed that the majority of calls originated by this provider were illegal calls, demonstrating that the originating provider did not adequately investigate the companies using its network to perpetrate fraud.

“The financial services industry spends billions of dollars each year to protect consumers from fraud, investigate potential criminal activity, and help affected consumers recover their hard-earned money,” said ABA. “Strong KYC requirements will ensure all originating providers conduct meaningful diligence of callers, keeping bad-actor callers off the U.S. telecommunications network,” ABA said.

ABA agreed with the FCC that it should collect a robust set of information from business callers — including name, physical address, alternate phone number, corporate formation records and intended use of the provider’s phone service — before the provider allows the caller to originate calls on the provider’s network. ABA also urged the FCC to require originating providers to confirm that the business is bonded, to understand the product or service that the customer offers (in order to understand the customer’s purpose in seeking to place calls using the provider’s service), and to ensure that owners of the business have not previously been convicted of violating telemarketing laws. These additional steps would help ensure that only legitimate businesses have access to call networks, the association said.

ABA also expressed support for the FCC’s proposal to codify a base forfeiture amount, on a per call basis, when a provider fails to take affirmative, effective measures to prevent callers from originating illegal calls. In addition, the association urged the FCC to allocate sufficient funding and staffing to investigate and, where appropriate, initiate enforcement actions to ensure that originating providers comply with the KYC rule.

ABA also urged the FCC to initiate a rulemaking to ban the possession or supplying of Subscriber Identity Module (SIM) boxes, which allow a caller to place a large number of illegal calls quickly from what appears to be separate phone numbers.

Full Article

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CISA News: Space Sector Faces 400% Surge in Cyberattacks Amid Iran War, Experts Say

The space sector is seeing a dramatic rise in the tempo and sophistication of cyberattacks following U.S. and Israel-led military operations in Iran, according to cybersecurity experts.

“From a high-level activity perspective, we’re operating at a tempo about 400% above where we were before the war,” Norm Laudermilch, CISO of Vantor, said during a June 23 CyberSat webinar on Iranian threats to space infrastructure.

The spike in security events is similar to other geopolitical conflicts, like the Russian invasion of Ukraine, according to Laudermilch. What is different, he said, is the convergence of hacktivist groups and nation-state actors. Unlike previous conflicts that saw a rise in hacktivists and cybercriminals conducting low-level attacks, experts are seeing a sustained targeting of the defense, industrial base and adjacent sectors, including aerospace and space.

“Each time you have a geopolitical crisis, a war, a conflict or a massive political decision, you have attacks against the space sector,” said Clémence Poirier, senior cyberdefense researcher at the Center for Security Studies (CSS) at ETH Zurich in Switzerland.

In a recent article, Poirier documented a shift in Iranian cyber operations from the 12-day Israel-Iran war in 2025 to Operation Epic Fury in February 2026. She identified a greater presence of sophisticated state cyber actors and geographically targeted attacks against Gulf nations, which were simultaneously hit by kinetic strikes.

During the first weeks of the conflict, Iranian state-sponsored groups launched a series of attacks. Mobir, with ties to the Islamic Revolutionary Guard Corps (IRGC), took credit for cyberattacks against Space42, Bayanarta, Thuraya, Yahsat, Arabsat and the UAE Space Agency. Handala, a hacktivist group with ties to Iran’s Ministry of Intelligence and Security, reportedly conducted personnel and doxxing attacks against Lockheed Martin employees in Israel. Lockheed was also targeted by the IRGC-linked APT33, which claimed to have stolen 375 terabytes of data from the company.

AI a ‘Double-Edged Sword’

The volume and sophistication of the attacks on the space sector is being attributed to the adoption of artificial intelligence.

“AI has lowered the barrier to entry for the threat actors while increasing the scale and complexity of the attacks,” said Laudermilch. This includes AI-enabled malware development, social engineering campaigns and powerful frontier AI models, like Anthropic’s Mythos or OpenAI’s GPT-5.5-Cyber, which have allowed users to rapidly identify and deploy exploits.

A three-page statement released Monday by leaders of the Five Eyes cybersecurity agencies, comprising the United States, Britain, Canada, Australia, and New Zealand, warned that frontier AI models are transforming offensive cyber capabilities on a timeframe of months, not years. The statement encouraged leaders to prioritize cyber resilience and foundational cybersecurity practices and controls.

Poirier described AI as a “double-edged sword,” given the speed and proliferation of offensive and defensive capabilities. “AI can be very good at finding vulnerabilities so that you can patch them,” she said. “But at the same time, you’re not going to be able to patch everything on the satellite. … So, you have to focus on patching the most critical and most likely to be exploited vulnerabilities.”

Even if companies use AI to discover vulnerabilities, most do not have the resources or time to test solutions, deploy them, ensure compatibility, and secure against downtime.  “We have to kind of give up on the fact that patching and prevention is the top priority because the current toolset in use by the attackers has taken that away from us,” said Laudermilch. The focus now is shifting to containment and detection, rather than prevention, he said, because new AI models “will generate zero-days a dime a dozen.”

Networks Remain Vulnerable

AI has changed the tempo of the threat, but the attack vectors remain largely unchanged. Within the satellite network, the ground segment and IT environments remain the most vulnerable. Identity and access management, cloud infrastructure, as well as third-party supply chains are all sources of potential compromise that experts say should be defended through supply chain visibility, Zero-Trust architectures, role-based access controls, and organization-wide security awareness training.

The spacecraft itself has remained a more difficult target. However, new government initiatives are highlighting the risks of on-orbit cyberattacks. As part of its efforts to protect space-dependent critical infrastructure, the U.S. Department of Homeland Security Science and Technology Directorate (DHS S&T) recently released research to support onboard threat detection and countermeasures.

Poirier noted that there are almost never reports of incidents where the space segment is the entry point of an attack, though that may change with onboard detection.

“It’s a bit of a chicken and egg problem, where do we not see attacks onboard because there are none,” she asked. “Or is it just that there are attacks against the space segment but we don’t see them because we don’t have data?”

It is much easier to compromise a spacecraft through human users or system vulnerabilities, said Laudermilch. “If your intent is to disable an automobile, would you spend all the time to hack the computer that controls everything or would you just put a knife in the tire?”

The webinar on evolving satellite cybersecurity risks was part of an ongoing discussion leading up to CyberSat, taking place November 3-5 in Reston, Virginia 

Full Article

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HB 1238 Toolkit: Effective July 1

HB 1238 takes effect July 1, 2026, providing South Dakota financial institutions with new authority and protections to help prevent the financial exploitation of consenting, senior, and vulnerable adults.

To help members prepare, the SDBA has developed a toolkit outlining key provisions of the law, common red flags, and practical implementation considerations. We encourage banks to review internal procedures, train frontline staff, and evaluate documentation and reporting protocols ahead of the effective date.

Financial exploitation continues to rise, making early intervention more important than ever. Access the toolkit today and begin preparing your institution for implementation.

HB 1238 Toolkit

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University of Sioux Falls launches new MBA with banking concentration

In partnership with the Graduate School of Banking at Colorado and the Graduate School of Banking at University of Wisconsin-Madison, the University of Sioux Falls is offering a banking concentration as part of their Master of Business Administration (MBA) graduate degree. Students who complete either GSB program will be credited with nine credits towards the banking concentration. With that coursework completed, they will be able to earn their MBA by completing the remaining 27 credits of MBA core classes.

USF has been a regional leader in graduate business education since the early 1990’s. Over that time, the program has evolved and grown to meet the specific needs of students and industry professionals in the region. As an independently accredited master’s program, USF offers GSB graduates the opportunity to build on their experience in and knowledge of banking, while learning more about core business concepts and applications across different industries.

Flexibility is central to the design of the USF MBA. The program is fully online and classes are offered year round in seven-week sessions. By taking one class at a time, GSB graduates can finish the program in about a year and a half. As work and family demands ebb and flow throughout the year, the program accommodates by allowing student to take a seven-week session off if needed. For those interested in investing more time and finishing faster, up to two classes can be taken each session. At this accelerated pace, the MBA can be completed in less than one year.

This partnership underscores the University of Sioux Falls’ longstanding commitment to workforce development. By creating accessible pathways for banking professionals to advance their education, USF helps strengthen the talent pipeline for financial institutions and businesses. The MBA program is designed not only to enhance technical and strategic business knowledge, but also to develop the next generation of organizational and community leaders.

Registration is open now for the next seven-week session. More information can be found at https://www.usiouxfalls.edu/mba-banking.

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Online Education

Participating in learning opportunities outside the bank can be challenging. Take advantage of the SDBA's extensive selection of webinars and on-demand training to enhance your banking expertise directly from your computer.

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Banking Matters Podcast

Episode 129 | June 22, 2026

Entrepreneurship, Financial Literacy, and Investing in Community: Lubbock D. Smith III and His Impact in South Dallas

Learn how to put compliance management solutions from Compliance Alliance to work for your bank, by contacting (888) 353-3933 or [email protected] and ask for our Membership Team. For timely compliance updates, subscribe to Bankers Alliance’s email newsletters. 

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