New bank scam laws could stop suspicious payments

Your phone rings, and the caller says your bank account is under attack. To protect your savings, you must move the money right now. The caller sounds calm. The instructions feel official. However, the "safe account" belongs to a scammer. That pressure can turn years of savings into an irreversible transfer. Georgia now gives some banks and credit unions another chance to interrupt the payment before the money leaves.

House Bill 945 took effect July 1, 2026. The law lets financial institutions pause certain transactions when they reasonably suspect financial exploitation. It protects adults age 65 or older. It also covers adults with qualifying physical or mental incapacities, Alzheimer's disease or dementia. The idea sounds simple. Yet the details matter because your bank's power may depend on your state, your account and the institution's own policy.

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Under Georgia's law, a financial institution may place a hold on a transaction linked to suspected exploitation. The law can cover an eligible adult's account or an account where that adult is a beneficiary. It can also reach an account belonging to someone suspected of carrying out the exploitation. That last provision gives the law extra reach. In practice, it could help when suspicious money arrives in another customer's account. The institution may have room to stop the payment from moving farther when the facts support concern.

However, the law gives banks discretion. It says a financial institution may place the hold, but it does not require one. Therefore, a worried teller or fraud analyst still has to notice the warning signs and act. The law also focuses on the suspicious transaction. It does not automatically shut down every payment or withdrawal connected to the account.

A Georgia hold initially expires after 15 business days. The bank may add up to 15 more business days if its review still supports the exploitation concern. A court may shorten or extend that period. The bank must notify authorized account parties and any trusted contact within three business days. It can skip someone it reasonably suspects of taking part in the exploitation. The institution must also begin reviewing the facts behind its decision.

Before using this power, the institution must train the employees involved. It also needs written procedures for reviewing suspected exploitation. The law gives institutions liability protection when they act in good faith and use reasonable care.

Georgia's law also allows an eligible adult to name a trusted contact for an account. That person could be a relative, friend or another adult the account owner trusts. The bank may contact that person when it suspects exploitation. It may also ask for help confirming contact information, health status or the identity of someone holding power of attorney. In some cases, the institution may share only that it suspects exploitation.

A trusted contact does not automatically gain access to your balance. The role also does not grant authority to move your money or make decisions for you. Federal regulators describe the contact as a backup person whom the institution can alert when something looks wrong.

Georgia is part of a much larger shift. As of today, at least 33 states have enacted laws that let banks, credit unions or other covered financial institutions delay certain transactions when they suspect financial exploitation.

The FTC's most recent nationwide chart identified 24 states with these laws.

However, the agency warned that its chart was only a snapshot and advised readers to check current state statutes.

However, the agency warned that its chart was only a snapshot and advised readers to check current state statutes. Since that report, nine additional states have enacted protections.

The states are:

The laws do not give every bank the same power. Some let an institution pause a payment on its own. Others require a report to law enforcement or adult protective services. The protected age can also vary, while several states include younger adults with qualifying disabilities. Hold periods differ even more. A delay may last only a few business days in one state. Elsewhere, an investigation or court order can keep the payment on hold much longer.

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Here is what the newer state laws do.

Colorado

Colorado's HB 26-1110 created the Adults' Security and Safeguards from Exploitation in Transactions Act, known as the ASSET Act. It lets a bank or credit union delay a disbursement when it reasonably believes a vulnerable adult faces financial exploitation. The institution must notify law enforcement or adult protective services. A decision generally must be made within 90 days. That period can reach 180 days when an agency investigation remains underway. The law takes effect August 12, 2026.

Georgia

Georgia's HB 945 lets a financial institution place a hold on a suspicious transaction involving an eligible adult. The law also reaches accounts where the adult is a beneficiary. In some cases, it can cover an account belonging to the suspected perpetrator. The initial hold lasts up to 15 business days. A bank may extend it for another 15 business days when its review continues to support the concern. The law also includes trusted contacts, employee training and written notice requirements.

Idaho

Idaho enacted HB 182, known as the Report and Hold law, in 2025. It covers a broad range of financial businesses, including banks, credit unions, lenders, money transmitters and investment firms. Covered professionals may temporarily pause suspicious transactions and report suspected exploitation. The law also gives them liability protection when they act in good faith.

Maine

Maine's 2025 law covers adults age 65 or older and people protected by the state's Adult Protective Services Act. A bank or credit union may delay a disbursement when it reasonably believes the payment could result in exploitation. The institution must notify the Maine attorney general within two business days. The hold generally ends within 15 business days unless a court extends it. Customers may also be able to designate a trusted contact.

Maryland

Maryland's Vulnerable Adult Banking Protection Act covers residents age 65 or older and vulnerable adults who cannot provide for their daily needs. A financial institution may delay or deny a suspicious disbursement. An initial delay can last 15 business days. The institution or an investigating agency can extend it for up to 25 business days from the original request date. The law takes effect October 1, 2026.

North Carolina

North Carolina's SB 595 gives financial institutions broad authority to delay or refuse transactions involving suspected exploitation of older or disabled adults. The law covers withdrawals, transfers and some requested account changes. An initial delay can last up to 30 business days. The institution may extend it for another 30 business days if it continues to believe exploitation is occurring. Banks may also alert a trusted contact.

Oklahoma

Oklahoma's SB 2067 requires financial institution employees to report suspicious activity internally and notify an appropriate agency. Banks and credit unions may place a temporary hold on a reported account. They can also contact someone previously designated by the account holder. The law takes effect November 1, 2026.

South Dakota

South Dakota's HB 1238 lets a financial institution delay or refuse certain transactions when it reasonably believes exploitation may have occurred or is being attempted. The law protects senior and vulnerable adults. It also covers a consenting adult who asks the institution to take protective action.

Vermont

Vermont's Act 106 lets covered financial institutions delay a transaction when they reasonably believe a customer faces financial exploitation. The initial delay can last 15 business days. The institution may add another 15 days when it believes the exploitation may continue. Vermont approved the law on May 20, 2026.

The federal Senior Safe Act encourages financial professionals to report suspected exploitation. It also offers liability protection to covered institutions and trained employees who make qualifying reports. However, the law does not create one nationwide transaction-hold rule for checking and savings accounts. Investment accounts follow a different framework. FINRA Rule 2165 lets a brokerage firm temporarily hold certain disbursements or securities transactions when it reasonably believes an eligible adult faces financial exploitation.

The rule generally covers adults age 65 or older along with some younger adults who have qualifying impairments. As a result, a brokerage firm may have national regulatory authority to pause a suspicious request. A bank handling your checking account may depend more heavily on the law in your state.

Most state laws give a bank permission to act rather than requiring it to block every suspicious payment. The institution still needs to recognize the warning signs and have enough information to reasonably suspect exploitation. Your protection may depend on your age, the account involved and where you live. Your bank's internal policies and employee training also play a role. Even in a state with a transaction-hold law, a payment may go through before anyone realizes a scam is underway.

CyberGuy has reported on grandparent scams that use urgent calls, stolen details and AI-cloned voices. We have also covered crypto kiosk scamswhere frightened victims followed a caller's instructions while the money moved beyond easy recovery. Georgia also used HB 945 to add safeguards for virtual currency kiosks, another payment method scammers use to move money quickly.

In both cases, the scammer wants to keep you isolated. They may warn you not to call your family or bank. They might claim that an employee is part of the investigation. A transaction hold attacks that pressure tactic. It adds time, which gives someone a chance to ask a basic question: Does this story make sense? Of course, no law will catch every scam. A payment can move through a different state, another financial service or a crypto wallet. Also, a bank may miss the warning signs or choose not to place a hold.

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An ABA Foundation survey commissioned from 158 banks offers an early view. Half of the responding banks in states with hold laws said they had used the authority to delay, refuse or hold transactions. Nearly 90% of respondents in states without such laws supported adopting them. The survey reflects the banking industry's experience rather than a nationwide independent study. Even so, it shows that banks see value in having time to investigate.

That time can also create a difficult balance. Banks need enough authority to stop a devastating payment. Yet they must avoid blocking legitimate transactions based on age alone. Georgia tries to address that concern with a reasonable-cause standard. It also requires notice, employee training and an internal review. Whether the law succeeds will depend on how institutions use those tools.

You should not assume your bank can reverse a scam payment. You also cannot count on it pausing every suspicious transaction. The safest approach is to put protections in place before an urgent call, text or email catches you off guard.

Call your bank's fraud department and ask whether you can add a trusted contact to your account. Then ask what the bank does when an employee suspects financial exploitation. You should also find out whether your state allows the bank to delay a suspicious transaction. The answer may differ between your checking account and your brokerage account.

Enable notifications for withdrawals, transfers and card purchases. Choose the lowest available dollar threshold so you hear about unusual activity quickly. Also review your bank's daily transfer and wire limits. Lower limits can make it harder for a scammer to move a large amount of money in one transaction.

Choose someone who will answer quickly and question an unusual request. Make sure that person knows your bank may call if something appears wrong. A trusted contact does not automatically gain access to your money. The role gives your bank another way to reach someone you trust during a possible emergency.

Choose a private word or phrase that family members can use to verify a real emergency. If someone calls claiming a loved one needs money, ask for the code word. Then hang up and contact your relative through a phone number you already have. Never call a number provided by the person demanding payment.

A bank, government agency or law enforcement officer will not tell you to protect your savings by transferring them to another account. Scammers often use the phrase "safe account" to make a fraudulent transfer sound official. Do not send money through a wire transfer, cryptocurrency kiosk or payment app while someone is pressuring you to act immediately. End the conversation and call your bank using the number on the back of your card or its official website.

Strong antivirus software can help detect malicious links, fake websites and downloads that scammers use to steal financial information. Keep the software updated on your phone and computer. Security software cannot stop every phone scam. However, it can block some of the digital tools criminals use before they reach your bank account. Get my picks for the best 2026 antivirus protection winners for your Windows, Mac, Android and iOS devices at CyberGuy.com.

Scammers may pull your age, relatives' names, phone number and address from data broker and people-search websites. They can use those details to make a fake emergency sound convincing. A data removal service can help reduce how much personal information appears on these sites. It cannot remove every record from the internet, but it can make it harder for criminals to build a detailed profile around you or your family. Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting CyberGuy.com.

Call your bank's fraud department as soon as you suspect a scam. Ask the institution to stop, recall or flag the transaction. Change your online banking password from a trusted device and review recent account activity. If you shared login details, ask the bank whether it should lock online access or issue new account numbers. Next, report the incident to local law enforcement and the appropriate fraud agency. For suspected elder financial abuse, you can also contact Adult Protective Services in your state.

Georgia's new law gives financial institutions explicit authority to pause certain transactions when they suspect financial exploitation. However, the hold remains optional, and the protection applies only in qualifying situations. The issue reaches far beyond Georgia. At least 33 states have enacted some form of transaction-hold authority for banks or credit unions, although several newer laws have later effective dates. The protections still vary, so your state and financial institution can shape what happens during the most urgent minutes of a scam. Add a trusted contact where available. Talk with your family about how to verify an emergency and learn how your bank handles suspicious payments. A five-minute conversation today could create the pause that saves someone's life savings later.

Should a bank have the power to delay your payment when it believes a scammer is directing you, even if you insist the transfer is legitimate? Let us know by writing to us at CyberGuy.com.

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