Rep. Howard files bill in North Carolina House to enhance wire fraud protections

A new bill filed by State Rep. Howard in the North Carolina House seeks to improve protections against unauthorized payment orders and ensure banks refund affected customers, according to the North Carolina State House.

The bill, filed as HB 264 on March 3 during the 2025 regular session, was formally listed with the short title: ‘Wire Fraud Prevention Act.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, the bill, titled the Wire Fraud Prevention Act, revises existing statutes to establish enhanced security procedures for verifying and amending payment orders between customers and banks. It mandates that banks verbally verify payment orders with both the customer and, if applicable, the beneficiary. The bill also requires banks to refund payments for unauthorized payment orders and outlines interest conditions based on timely customer notifications. If a payment order is not authorized but is effective, banks must refund 25% within 30 days of discovery. Additionally, if a beneficiary’s account is less than a year old and the payment exceeds $100,000, banks are to initially pay 25% and remit the remaining amount after 10 business days. The act becomes effective Oct. 1, 2025, impacting funds transfers from that date.

Of the three sponsors of this bill, Howard proposed the most bills (10) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Howard graduated from Salem College in 2003 with a BA.

Howard, a Republican, was elected to the North Carolina State House in 2019 to represent the state’s 77th House district, replacing previous state representative Harry Warren.