Key Takeaways
- Georgia's HB 945, effective July 1, 2026, allows banks and credit unions to temporarily hold transactions suspected of financial exploitation targeting adults aged 65 or older, or those with qualifying incapacities.
- The law introduces the concept of a 'trusted contact,' enabling financial institutions to reach out to a designated individual during suspected fraud without granting them access to account funds.
- This initiative is part of a broader national trend, with at least 33 states now having laws that permit financial institutions to delay suspicious transactions, though specific provisions vary widely.
- While offering a vital layer of protection, the law grants banks discretion, meaning they are not mandated to place a hold, underscoring the importance of vigilance and proactive measures.
- Individuals are encouraged to proactively engage with their banks to understand available protections, set up alerts, and designate trusted contacts to enhance personal financial security.
Imagine a phone call where a calm, official-sounding voice warns that your bank account is under attack, demanding an immediate transfer to a "safe account." This high-pressure tactic often leads to irreversible losses for vulnerable individuals. Georgia is taking a significant step to combat such scams with a new law designed to give financial institutions a critical window to intervene before savings vanish.
Georgia's Pioneering Legislation
Effective July 1, 2026, Georgia's HB 945 empowers financial institutions to place a temporary hold on certain transactions when they reasonably suspect financial exploitation. This protection specifically covers adults aged 65 or older, as well as those with qualifying physical or mental incapacities, including Alzheimer's disease or dementia. The law's reach extends not only to the eligible adult's account but also to accounts where they are a beneficiary, and even to accounts belonging to individuals suspected of perpetrating the exploitation, providing a broader scope for intervention.
The initial hold can last up to 15 business days, with an option for an additional 15 business days if the review continues to support the exploitation concern. A court can further modify this period. Banks are required to notify authorized account parties and any designated trusted contact within three business days, while exempting those reasonably suspected of involvement in the fraud. Crucially, the law provides liability protection for institutions acting in good faith and with reasonable care, encouraging proactive intervention.
The Critical Role of Trusted Contacts
A key feature of Georgia's law is the ability for eligible adults to name a trusted contact for their account. This individual, who could be a relative or friend, can be contacted by the bank when exploitation is suspected. The trusted contact's role is strictly to assist the institution in verifying information or health status; they do not gain access to account balances or transaction authority. This mechanism provides an invaluable communication channel during a potential crisis, allowing banks to reach out to someone the account holder trusts.
A National Movement Against Financial Fraud
Georgia's legislation is part of a much larger national effort to protect vulnerable adults from financial exploitation. As of today, at least 33 states have enacted laws that grant banks, credit unions, or other financial institutions the authority to delay transactions under suspicion of fraud. While the federal Senior Safe Act encourages reporting and offers liability protection, it does not establish a uniform nationwide transaction-hold rule for checking and savings accounts, making state-level laws crucial. Investment accounts, however, often fall under FINRA Rule 2165, which allows brokerage firms to temporarily hold suspicious disbursements.
Diverse State Approaches to Protection
The specifics of these state laws vary considerably. Some, like Colorado's ASSET Act (effective August 12, 2026), require notification to law enforcement or adult protective services, with hold periods extending up to 90 or even 180 days. Idaho's 2025 Report and Hold law covers a broad range of financial businesses. Maine's 2025 law protects adults 65 and older, requiring notification to the state attorney general. Maryland's Vulnerable Adult Banking Protection Act (effective October 1, 2026) allows for initial 15-day delays, extendable by an investigating agency. North Carolina's SB 595 grants broad authority for delays up to 30 business days, with extensions. Oklahoma's SB 2067 (effective November 1, 2026) mandates internal reporting and agency notification. South Dakota's HB 1238 protects senior and vulnerable adults, while Vermont's Act 106 allows for 15-day delays, extendable by another 15 days.
Empowering Banks, Protecting Consumers
It is important to note that most state laws grant financial institutions permission to act, rather than mandating a hold on every suspicious payment. This discretion means that a bank's ability to intervene depends on its employees recognizing warning signs, having sufficient information to reasonably suspect exploitation, and its internal policies and training. While these laws provide a vital tool, they do not guarantee that every scam will be intercepted. The balance lies in giving banks enough authority to prevent devastating losses without unduly blocking legitimate transactions.
Proactive Steps to Safeguard Your Finances
Given the evolving landscape of financial scams, individuals should not assume their bank can automatically reverse a fraudulent transfer or pause every suspicious transaction. The most effective defense remains proactive protection. Consider these steps:
- Engage with Your Bank: Inquire about adding a trusted contact to your account and understand your bank's procedures for handling suspected financial exploitation. Ask if your state's laws allow for transaction delays.
- Set Up Alerts and Limits: Configure transaction alerts for withdrawals, transfers, and card purchases. Choose the lowest available dollar threshold to be notified quickly of unusual activity. Review and consider lowering daily transfer and wire limits to restrict large fraudulent movements.
- Establish a Family Code Word: Create a private word or phrase that family members can use to verify a genuine emergency. If someone calls claiming a loved one needs money, demand the code word, then hang up and contact your relative directly using a known number.
- Recognize Scammer Tactics: Be aware that legitimate banks, government agencies, or law enforcement will never instruct you to transfer money to a "safe account" to protect your savings. Do not send money via wire transfer, cryptocurrency kiosk, or payment app under immediate pressure. End the conversation and call your bank using the official number on your card or website.
- Enhance Digital Security: Utilize strong, updated antivirus software on all devices to detect phishing attempts, fake websites, and malicious downloads. Consider data removal services to reduce your personal information available on data broker sites, making it harder for scammers to build convincing profiles.
- Act Immediately if Scammed: If you suspect a scam, contact your bank's fraud department immediately to attempt to stop or recall the transaction. Change online banking passwords, review account activity, and report the incident to the FTC and appropriate fraud agencies, including Adult Protective Services for elder financial abuse.
Why This Matters
These new state laws provide a crucial layer of defense against financial exploitation, offering a much-needed pause that can prevent devastating losses for vulnerable individuals. By empowering financial institutions and encouraging proactive measures, these safeguards aim to protect life savings and uphold the financial security of our communities.