A new Georgia law gives banks and credit unions a powerful tool to interrupt financial scams targeting older and vulnerable adults, allowing them to pause suspicious payments before money leaves an account. House Bill 945, which took effect July 1, 2026, permits financial institutions to place a temporary hold on transactions when they reasonably suspect financial exploitation. The law covers adults aged 65 or older, as well as those with qualifying physical or mental incapacities, Alzheimer's disease, or dementia. This measure aims to combat the rising tide of scams where fraudsters impersonate bank officials, law enforcement, or tech support to pressure victims into transferring savings to so-called safe accounts that actually belong to criminals.
Under the law, a financial institution may place a hold on a transaction linked to suspected exploitation involving an eligible adult's account or an account where that adult is a beneficiary. Notably, the law also extends to accounts belonging to someone suspected of carrying out the exploitation, giving institutions broader authority to intercept illicit funds. However, the law grants banks discretion rather than a mandate, meaning a teller or fraud analyst must still recognize warning signs and act. The hold initially expires after 15 business days, with a possible extension of up to 15 additional business days if the institution's review continues to support the exploitation concern. A court may shorten or extend that period as needed.
Financial institutions must notify authorized account parties and any designated trusted contact within three business days of placing a hold, though they can skip someone reasonably suspected of involvement in the exploitation. The institution must also begin reviewing the facts behind its decision and, before using this power, train employees and establish written procedures for handling suspected exploitation. The law provides liability protection for institutions that act in good faith and with reasonable care. Additionally, the law allows eligible adults to name a trusted contact for their account, such as a relative or friend, whom the bank may alert when it suspects exploitation. This trusted contact does not gain access to account balances or authority to move money, serving only as a backup person for the institution to notify when something appears wrong.
Georgia is part of a much larger shift across the United States. At least 33 states have now enacted laws that let banks, credit unions, or other covered financial institutions delay certain transactions when they suspect financial exploitation. The Federal Trade Commission's most recent nationwide chart identified 24 states with such laws, but the agency warned that its chart was only a snapshot and advised checking current state statutes. Since that report, nine additional states have enacted protections, including Colorado, which passed the Adults' Security and Safeguards from Exploitation in Transactions Act, known as the ASSET Act. Colorado's law, effective August 12, 2026, lets a bank or credit union delay a disbursement when it reasonably believes a vulnerable adult faces financial exploitation, requiring notification to law enforcement or adult protective services. A decision must generally be made within 90 days, extendable to 180 days if an agency investigation remains underway.
The specifics of these laws vary significantly by state. Some allow institutions to pause a payment on their own, while others require a report to law enforcement or adult protective services. The protected age can differ, with several states including younger adults with qualifying disabilities. Hold periods also vary, ranging from a few business days in some states to longer periods tied to investigations or court orders. This patchwork of protections means that a bank's power to intervene may depend on the customer's state, account type, and the institution's own policies. For consumers, the key takeaway is that while these laws provide a safety net, they are not automatic. Individuals should remain vigilant against common scam tactics, such as urgent calls claiming a bank account is under attack or demands to move money to a safe account.
Financial exploitation of older adults remains a significant problem, with the Federal Bureau of Investigation reporting billions of dollars in losses annually. Scammers often use sophisticated social engineering to create a sense of urgency and authority, making victims feel compelled to act quickly. The new state laws aim to give financial institutions a critical window to verify transactions and protect customers before irreversible damage occurs. As more states adopt similar measures, the trend reflects a growing recognition that proactive intervention by banks can be a key defense against financial abuse. Consumers are encouraged to stay informed about their state's specific protections and to report any suspicious activity to their financial institution immediately.
