New State Laws Empower Banks to Pause Suspicious Scam Payments
Imagine receiving an urgent phone call claiming your bank account is under attack. The caller sounds calm, the instructions feel official, and you are told to move your money immediately to a "safe account". Unfortunately, that account belongs to a scammer, and the intense pressure can turn years of hard-earned savings into an irreversible transfer.
To combat this growing threat, a powerful legislative shift is sweeping the United States. Georgia has become the latest battleground against financial exploitation, passing House Bill 945, which officially took effect on July 1, 2026. This law grants banks and credit unions a critical window to interrupt suspicious payments before the money permanently leaves the account.
How Georgia's House Bill 945 Works
The premise of the new law is simple: create time so fraud analysts can review suspicious activity. However, the power is highly targeted. The law specifically protects adults aged 65 or older, as well as individuals living with qualifying physical or mental incapacities, Alzheimer's disease, or dementia.
Key details of the legislation include:
Broad Reach: Financial institutions can place a hold on transactions linked to suspected exploitation. This covers the eligible adult's account, accounts where they are listed as a beneficiary, and even the account of the suspected perpetrator—helping stop the money if it lands in another customer's account.
The 30-Day Limit: An initial hold expires after 15 business days. If the bank's internal review continues to support the exploitation concern, they may extend the hold for an additional 15 business days.
Strict Discretion: The law gives banks the permission to act, but it does not require a hold. An observant teller or fraud analyst must still recognize the warning signs and initiate the protocol.
To prevent abuse and avoid blocking legitimate transactions based on age alone, the law requires institutions to establish written procedures, train employees, and notify authorized account parties within three business days of a hold.
A Growing National Movement
Georgia is not alone in this fight. At least 33 states have now enacted transaction-hold protections to intercept financial exploitation. Because the federal Senior Safe Act only protects institutions that report abuse rather than creating a nationwide hold rule for checking accounts, individual states have had to step in.
Nine states have recently implemented or updated their laws to include distinct mechanisms:
Colorado: The ASSET Act allows holds up to 90 days (or 180 days during active law enforcement investigations).
Maine & Maryland: Both allow initial 15-business-day holds, with Maryland allowing extensions up to 25 business days.
North Carolina: Gives broad authority to delay withdrawals or transfers for up to 30 business days, with a possible 30-day extension.
Oklahoma, South Dakota, Idaho, and Vermont: Have all rolled out similar "Report and Hold" variations to give local institutions safe harbor liability protection when acting in good faith.
The Power of a "Trusted Contact"
Many of these newer state laws, including Georgia's, allow account holders to designate a Trusted Contact. Federal regulators describe this role as a vital backup person.
It is important to note that a trusted contact does not gain access to your balance, nor do they have the authority to move money or make decisions. Instead, if a bank analyst suspects you are being scammed, they can reach out to this designated friend or relative to verify your well-being, health status, or to confirm if an unusual transaction is legitimate.
Proactive Steps to Protect Your Savings
Scammers know that speed works in their favor, often using urgent cloning scares or cryptocurrency kiosk traps to move funds beyond recovery. You should never assume a bank can reverse a scam payment once it is sent. Take these protective measures today:
Set Up Account Alerts: Turn on instant text or email notifications for all withdrawals and transfers at the lowest possible dollar threshold.
Add a Trusted Contact: Contact your financial institution's fraud department to formally designate a backup contact.
Establish a Family Code Word: Create a private phrase with your loved ones to instantly verify real emergencies over the phone.
Remember the Golden Rule: A legitimate bank or government agency will never tell you to protect your funds by transferring them to a "safe account." If pressured, hang up and call the number on the back of your debit card.