Financial scams targeting older adults are not rare anymore — they are organized, fast, and increasingly sophisticated.
According to the Federal Trade Commission, Americans lose billions of dollars each year to fraud, and older adults often face higher median losses per incident.
The good news? New federal and state-level anti-scam laws and banking regulations now allow:
Banks to delay suspicious transfers
Courts to freeze assets more quickly
Financial institutions to report exploitation sooner
Trusted contacts to be notified in certain situations
These changes are designed to protect you — even if you don’t realize a scam is happening.
Why Faster Intervention Matters
In the past, once money left your account, recovery was extremely difficult.
Scammers often:
Push urgency
Ask for wire transfers
Request gift cards or cryptocurrency
Pretend to be government agencies
Pose as grandchildren or loved ones
Once funds were transferred, banks sometimes had limited authority to pause transactions unless the account holder formally objected.
That has changed.
What Has Changed in Anti-Scam Protections
Banks Can Delay Suspicious Transactions
Under updated guidance and state elder abuse laws, banks can now temporarily hold transactions if they suspect financial exploitation.
The Financial Industry Regulatory Authority allows broker-dealers to place temporary holds when exploitation of a “specified adult” is suspected.
Similarly, many state laws now permit banks to:
Freeze suspicious withdrawals
Delay large wire transfers
Notify authorities
Contact a trusted person
This is especially important when scammers pressure seniors into moving money quickly.
Trusted Contact Rules
Financial institutions can now request a “trusted contact person.”
This rule, supported by FINRA and implemented widely across brokerage firms, allows firms to contact a person you designate if:
Unusual activity occurs
They suspect exploitation
They can’t reach you
The trusted contact does not control your account. They are simply notified if something looks wrong.
This adds an extra layer of protection.
Courts Can Freeze Assets Faster
Many states have strengthened laws allowing courts to issue temporary protective orders in cases of suspected financial exploitation.
The National Center on Elder Abuse reports that expanded elder justice laws now give legal systems broader authority to intervene earlier.
This can include:
Freezing accounts
Blocking property transfers
Appointing emergency guardians
Investigating suspicious transactions
Faster legal action can prevent losses from escalating.
Mandatory Reporting by Financial Institutions
In many states, financial professionals are now required or permitted to report suspected elder financial abuse to:
Adult Protective Services
Law enforcement
State regulators
This reporting system did not always exist in the past. Today, frontline bank employees are trained to recognize red flags such as:
Sudden large withdrawals
New “friends” influencing decisions
Confusion about transactions
Dramatic changes in spending patterns
How These Laws Protect You — Even If You Feel Confident
Many older adults say: “I would never fall for a scam.”
And most don’t — until a moment of stress, fear, or confusion is introduced.
Scammers exploit:
Loneliness
Health scares
Fear of government penalties
Grandparent emergencies
Romance schemes
The Federal Bureau of Investigation reports that “imposter scams” and “tech support scams” continue to disproportionately affect older adults.
The purpose of faster intervention laws is not to question your judgment.
Pause protects money.
Common Scams Targeting Adults Over 55
Be aware of:
Fake IRS or Social Security calls
Grandchild emergency scams
Romance scams
Investment fraud
Fake tech support alerts
Medicare impersonation calls
The Social Security Administration regularly warns beneficiaries about impersonation schemes.
What You Can Do to Strengthen These Protections
Even with new laws, personal steps matter.
Add a Trusted Contact
Ask your bank or brokerage about setting one up.
Slow Down Urgent Requests
Scammers rely on urgency.
Real agencies do not demand immediate payment by gift card.
Verify Independently
If someone claims to be from Social Security, hang up and call the official number yourself.
Monitor Accounts Regularly
Review statements monthly.
Use Account Alerts
Enable transaction notifications.
Report Quickly
Contact your bank immediately if you suspect fraud.
You can also report scams to:
Federal Bureau of Investigation Internet Crime Complaint Center (IC3.gov)
A Balanced Perspective
New anti-scam laws are designed to protect you — but they are not a replacement for awareness.
They work best when combined with:
Clear communication
Trusted contacts
Legal documents (power of attorney)
Calm decision-making
With care,
Mike Bridges
Founder, The O55 Report