US state Georgia grants banks authority to halt suspicious transactions for elderly, disabled

Georgia grants banks power to block suspicious transactions for elderly, disabled

A new law in Georgia allows banks to temporarily block transactions suspected of fraud in accounts of adults over 65 or with mental disabilities. At least 33 US states have similar protections.

Scraper SystemJuly 17, 2026, 10:28 PM

Georgia grants banks power to block suspicious transactions for elderly, disabled

In the US state of Georgia, a new law has come into effect to protect elderly and vulnerable customers from financial fraud. The law, HB 945, grants banks and credit unions the authority to stop suspicious transactions in accounts of adults aged 65 and over or with mental disabilities such as Alzheimer's or dementia, effective July 1, 2026.

Under the law, if there is reasonable suspicion that a transaction is linked to financial exploitation, the bank may suspend the payment for 15 business days. If necessary, this period can be extended by another 15 business days. The final authority to shorten or extend the period rests with the courts.

Notification and Contact Person Requirement

Banks are required to notify the account holder and, if designated, a trusted contact person in writing within 3 business days after stopping a transaction. However, notification is not required to a person suspected of being involved in the exploitation. Additionally, banks must train their employees on this matter and establish written procedures for reviewing suspicious situations.

The law also allows account holders to designate a trusted contact person. This person serves as a point of contact for the bank in suspicious situations, without having authority to manage the account's funds. In case of suspected exploitation, the bank can contact this person to verify the account holder's situation.

Other US States

Georgia is not the only state providing such protection. According to Federal Trade Commission (FTC) data, at least 33 states across the US have laws allowing banks to stop suspicious transactions. Recently, states such as Colorado, Idaho, Maine, Maryland, North Carolina, Oklahoma, South Dakota, and Vermont have also implemented similar measures.

The federal Senior Safe Act encourages financial professionals to report suspected exploitation but does not establish a uniform transaction hold rule nationwide. While broker-dealers have national authority to stop transactions on investment accounts under FINRA Rule 2165, state laws govern bank accounts.

Bank Perspectives and Consumer Advice

According to a survey by the ABA Foundation of 158 banks, half of the banks in states with transaction hold laws reported using this authority. Meanwhile, about 90% of banks in states without such laws support a similar authority.

Experts emphasize that consumers should not rely solely on laws. It is recommended to contact your bank's fraud department to find out if you can add a trusted contact person to your account and how they handle suspicious transactions. Gaining time to assess the situation before acting in panic in response to an urgent call or message is also critical.

Georgia grants banks power to block suspicious transactions for elderly, disabled

A new law in Georgia allows banks to temporarily block transactions suspected of fraud in accounts of adults over 65 or with mental disabilities. At least 33 US states have similar protections.