New bank scam laws could stop suspicious payments

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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.

 

 

 

Georgia’s new bank scam law can pause a suspicious payment

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 possible 30-day delay comes with limits

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.

 

A trusted contact can help without controlling your money

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.

 

More states are giving banks time to question a payment

Georgia has joined a much larger movement. An FTC chart identified 24 states with bank or credit union transaction-hold laws as of October 2024. Those laws varied widely, including who qualified and how long a delay could last. Since then, Maine enacted a law allowing a delay of up to 15 business days in qualifying cases. Colorado, Maryland, North Carolina, South Dakota, Vermont and Georgia also enacted new protections. A review of those official state measures puts the enacted total at least 31 states. However, some of the newest measures have later effective dates.

Still, those laws do not work the same way. One state may protect adults starting at age 60. Another may use age 65 or include younger adults with certain disabilities. The notice rules and extension periods can also differ. Some states let the institution act on its own reasonable suspicion. Others create a role for adult protective services, law enforcement or a court. As a result, two families facing the same scam may get very different responses.

 

Why your checking account lacks one national rule

The federal Senior Safe Act encourages financial professionals to report suspected exploitation. It offers liability protection to covered institutions and trained employees who make qualifying reports. However, the act does not create one nationwide transaction-hold rule for every checking and savings account.

Investment accounts follow a different framework. FINRA Rule 2165 lets a brokerage firm temporarily hold certain disbursements or securities transactions when it reasonably believes a specified adult faces financial exploitation.

The rule generally covers adults age 65 or older and some younger adults with impairments. That means a brokerage may have national regulatory authority to pause a suspicious request. Meanwhile, a bank handling your checking account may depend more heavily on state law.

 

Scammers know speed works in their favor

CyberGuy has reported on grandparent scams that use urgent calls, stolen details and AI-cloned voices. We have also covered crypto kiosk scams where 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.

 

Do these bank scam transaction hold laws work?

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.

 

How to protect your money from bank scams

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.

 

1) Ask your bank about trusted contacts and transaction holds

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.

 

2) Turn on instant alerts for account activity

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.

 

3) Make sure your trusted contact understands the role

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.

 

4) Create a family code word for emergencies

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.

 

5) Never transfer money to a so-called safe account

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.

 

6) Use strong security software on your devices

Strong antivirus software such as Norton Antivirus Plus (CyberGuy Deal: 68% off) 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.

 

7) Reduce the personal information scammers can use

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 like Incogni 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.

 

8) Act quickly if money starts moving

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.

 

 

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Kurt’s key takeaways

Georgia’s new law gives financial institutions a stronger way to interrupt suspected exploitation before a payment disappears. However, the hold remains optional, and the protection applies only in qualifying situations. The bigger issue reaches far beyond Georgia. At least 31 states have now enacted some form of transaction-hold authority for banks or credit unions, yet the rules still vary. 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 verification before 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 in the comments below. 

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