A new Maryland law empowers banks and credit unions to temporarily pause suspicious transactions involving older and vulnerable adults, aiming to prevent losses like the nearly $600,000 stolen from Judith Boivin’s retirement accounts. As Baltimore Chronicle notes, this legislation marks a significant step in safeguarding seniors against increasingly sophisticated scams. Boivin, a Montgomery County resident, had her life savings drained over three months after someone impersonating law enforcement convinced her to liquidate all accounts.
The impersonator told Boivin she was under investigation for fraud and money laundering, instructing her to act quickly to “prove her innocence.” Despite her bank suspecting a scam, they could not halt the withdrawals. “The total that I lost was approximately $600,000. And it was the totality of my IRAs and my savings,” Boivin testified.
House Bill 1008 overview
House Bill 1008, known as the Vulnerable Adult Banking Protection Act, goes into effect October 1. Financial institutions can now temporarily delay suspicious transactions for adults 65 and older and other vulnerable adults. Holds may last 15, and in certain cases 25, business days while transactions are reviewed. Banks and credit unions are also allowed to notify a trusted contact and law enforcement during this period.
John Bratsakis, president and CEO of the Maryland and D.C. Credit Union Association, explained that the trusted contact is not given control over the account. “They don’t have access to the money but can look out for the member’s interests,” he said. The law focuses on slowing down transactions when red flags appear, providing employees the authority to question unusual activity.
Real-life impact
In practice, the law can prevent large losses. Bratsakis shared an example: “A credit union locally paused a wire request for $80,000 because the transfer was directed to an individual instead of a title company. The hold allowed the transaction to be stopped safely.” This demonstrates the importance of temporary delays for protecting vulnerable adults from financial exploitation.
How the trusted contact works
Financial institutions will reach out to eligible members about adding a trusted contact to accounts. New account holders will also have the option. The trusted contact may be a family member, friend, or advisor who can provide oversight if suspicious activity arises. This measure is especially important because banks are generally not required to reimburse customers who authorize transactions, even if they fall victim to scams.
| Key feature | Description | Duration |
|---|---|---|
| Transaction hold | Pause suspicious transfers | 15–25 business days |
| Trusted contact | Notify a designated person | Optional for member |
| Law enforcement | Alert authorities if needed | As required |
| Age criteria | Adults 65+ or other vulnerable adults | Permanent eligibility |
These protections aim to reduce the financial harm caused by increasingly sophisticated scams targeting older adults.
Community support and advocacy
Boivin testified in support of HB 1008, emphasizing that earlier intervention could have prevented her losses. Maryland lawmakers and financial institutions are working together to increase awareness, ensuring members know their rights and options under the new law. Advocates stress that slowing down and verifying requests is critical, as scammers often pressure victims to act quickly.
Preparing for the law’s rollout
Starting in October, credit unions will begin educating members and updating account agreements to include the trusted contact option. Customers are encouraged to review their account safety measures and designate a contact they trust. This proactive approach is key to preventing losses and empowering older adults to protect their savings.
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